Bitcoin has entered an era where quantum resistance security preparations must begin immediately, according to a new report from Coinbase’s independent advisory board of cryptography experts.
Summary
- Coinbase’s advisory board says Bitcoin should start preparing for the switch to quantum-resistant cryptography now.
- The report does not encourage BTC to freeze, leaving the decision to the Bitcoin community.
- Researchers estimate that between 1.7 and 5 million BTC could face future quantum risks.
According to a report published by Coinbase’s advisory board, the Bitcoin community should start developing and implementing a migration path to post-quantum cryptography now rather than waiting for a consensus on how to handle vulnerable legacy coins.
A June report, commissioned by a team that includes Ethereum Foundation researcher Justin Drake, says that quantum computers do not currently threaten Bitcoin. Nevertheless, the authors argue that uncertainty about future developments in quantum computing permits early planning to avoid disruptions later.
At the center of the discussion is the growing debate over Bitcoin held at addresses protected by existing signatures of ECDSA and Schnorr. According to the report, some members of the community support the establishment of a migration deadline after which those signature programs will no longer be accepted, freezing coins that have not been delivered to addresses that have been counter-valued.
Proponents of that approach argue that it will prevent future quantum attackers from controlling large amounts of BTC and potentially impacting the market.
Others within the Bitcoin community take a different view. As explained in the report, critics argue that making the coins unusable would amount to private property confiscation and would go against Bitcoin’s long-standing principles of immutability and user control over assets.
The report leaves the ruling decision up to Bitcoin users
Rather than endorsing any position, Coinbase’s advisory board said that the question of whether the coins at risk should ultimately be frozen, burned, or left untouched must be decided by the Bitcoin community itself.
Instead of supporting any competing proposals, the authors refused to recommend the preferred outcome of the inheritance of Bitcoin holdings.
“We refrain from providing any recommendations regarding the treatment of endangered coins.”
On the question of governance, the report asserted that the final result should come from Bitcoin’s consensus process rather than being called by a small group of researchers.
“The decision should be made by the Bitcoin community.”
Several statistics cited in the report show why this debate has escalated. According to the advisory board, about 1.7 million BTC are stored in old payment-to-public public key addresses whose keys have already been exposed, making them vulnerable to quantum attacks in the future.
The report notes that many of those coins are believed to belong to missing wallets, including belongings commonly attributed to Bitcoin creator Satoshi Nakamoto.
Using research from Project11, the report also notes that 5 million BTC may face exposure through address reuse, although most of those funds are believed to remain under the control of active users and institutions.
Technical proposals are under review
Alongside the debate over legacy coins, the report outlines several proposals designed to ease Bitcoin’s eventual transition to quantum-resistant security.
One proposal, known as the Hourglass, would limit how many BTC from vulnerable addresses can be transferred to each block, reducing the risk of a sudden influx of acquired coins entering circulation. Another proposal, BIP-361, would allow users to prove identity using post-quantum cryptographic methods even after legacy signatures have been discontinued.
The report also discusses Quantum Address Commitments, or PACTs, a mechanism that would allow users to commit to secure future addresses before the migration deadline without having to move money immediately.
While the advisory board stopped short of recommending any one solution, it offered two clear conclusions. According to the report, the development of anti-quantum migration tools should start immediately, and Bitcoin users should get clear information about the potential risks and available migration methods before quantum computing becomes a real threat.
The publication comes as Coinbase pursues broader expansion of its platform, with the company recently revealing plans to integrate trading, lending, payments, derivatives, and AI-powered services into a unified financial ecosystem.
