web3: Quantum Computing Approaches, Crypto Industry Prepares for Large-Scale Migration
CoinWorld reports:
As research in quantum computing continues to advance, the crypto industry is beginning to seriously discuss a long-standing issue: how to migrate the existing digital asset system to new cryptographic solutions before sufficiently powerful quantum computers emerge. This process is referred to in the industry as "large-scale quantum migration."
Over $2 Trillion in Assets at Risk
Currently, a significant amount of digital assets still relies on elliptic curve cryptography to prove ownership and sign transactions. This system has long been considered secure in traditional computing environments because the computational effort required to crack private keys is extremely high.
Christopher Smith, co-founder and CEO of Quantus, stated that over $2 trillion in digital assets are protected by this type of encryption, an amount close to the total market capitalization of the entire crypto market. Google researchers have previously suggested that the computational resources required to attack this type of encryption may be lower than previously estimated.
Wallets and Key Management Under Greater Scrutiny
Smith believes that large Bitcoin wallets may become obvious targets. He cited Binance's Bitcoin cold wallet, which holds over $10 billion. In contrast, the management keys for USDT are seen as a more sensitive area, as they relate to the control of stablecoin issuance.
He noted that once such keys are compromised, the impact may not be limited to a single asset but could also affect DeFi protocols that rely on stablecoin liquidity. However, Coinbase told Fortune that the entire crypto ecosystem should not be viewed as equally vulnerable; the real concern lies in the exposure risks at the wallet level.
Challenges of Migration Lie in Industry Coordination
Google has suggested that by around 2029, crypto systems should gradually migrate away from encryption schemes that are susceptible to quantum attacks. The U.S. National Institute of Standards and Technology has also promoted the standardization of post-quantum cryptography, providing alternative algorithms.
Coinbase believes that integrating quantum-resistant signatures into the blockchain itself is a solvable engineering problem; the more challenging aspect is how to implement the migration, especially regarding assets that have not migrated in time. Its independent quantum advisory committee recently released a report discussing the handling of legacy addresses and abandoned assets.
Multiple Institutions Have Started Preparing
This type of upgrade differs from centralized services changing encryption methods. Even if developers complete protocol upgrades, if exchanges do not support them, users may be unable to transfer assets; if wallets do not keep up, risks on old addresses will remain.
Coinbase is currently one of the founding members of the Bitcoin Security Alliance. Members of this alliance include BlackRock, Fidelity Digital Assets, Block, Blockstream, and Strategy. Coinbase also stated that it is providing funding and engineering support for quantum security-related developments, involving proposals such as BIP-360 and research on post-quantum migration pathways.
-- Price
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