‘The great quantum migration’ is coming as more than $2 trillion in digital assets is at risk—nearly the entire value of the overall crypto market

Cryptocurrency and blockchain-based assets are at risk as researchers inch closer to developing quantum computers capable of breaking the mathematical assumptions that currently secure these digital assets. The crypto industry needs to migrate to quantum-secure infrastructure before the quantum computers arrive. Christopher Smith, co-founder and CEO of Quantus, a quantum-secure blockchain network, emphasizes the need for the entire digital asset industry to participate in this "great quantum migration."

Quantum computers use subatomic particles and trapped ions to perform calculations via qubits, allowing them to theoretically execute any calculation in a fraction of the time it would take traditional computers. Although traditional computers would take hundreds of millions of years to crack cryptography codes, a powerful enough quantum computer could do so in a much shorter time frame.

Elliptic curve cryptography, which is used to secure over $2 trillion in digital assets—equivalent to nearly the entire crypto market worth $2.16 trillion—is known to be vulnerable to quantum attacks. Google researchers estimate that the computational resources required to attack this cryptography may be lower than previously thought. Major targets for quantum attacks could include Bitcoin wallets, such as Binance's Bitcoin cold wallet containing over $10 billion.

While Coinbase maintains that bitcoin's core infrastructure is largely safe, it emphasizes the vulnerability at the wallet level. The company acknowledges that replacing cryptography may be easier than deciding how to implement the migration. The challenge lies in ensuring that all stakeholders, including custodians, exchanges, mobile and hardware wallet providers, blockchain developers, and users, take appropriate action to protect digital assets.

Coinbase is a founding member of the Bitcoin Security Consortium, which aims to coordinate potential upgrades to quantum security. The company has published a position paper assessing quantum risks to cryptocurrency and is working with developers and experts to support quantum-resistant solutions. Coinbase also pledges to contribute to a fund supporting Bitcoin developers working on quantum security and dedicating engineering resources to open-source efforts, such as BIP-360 and post-quantum migration paths.