Coinbase Outlines Ways To Protect Bitcoin From Quantum Attacks

Cryptocurrency exchange Coinbase Global (NASDAQ: $COIN) has proposed ways to protect Bitcoin (CRYPTO: $BTC) from future attacks by powerful quantum computers.

In a new technical paper, Coinbase urges Bitcoin developers to begin preparing for quantum computing threats, warning that upgrading the crypto's security could take years.

Coinbase says that Bitcoin could gradually adopt quantum-resistant digital signatures while protecting existing wallets and investors' holdings.

The exchange, which holds approximately 5% of all existing Bitcoin in custody, calls for flexible transaction designs, stronger wallet protections, and an orderly migration process.

Coinbase argues in the paper that Bitcoin's move toward quantum-resistant security will require more than a new digital signature algorithm.

Developers must consider transaction fees, network capacity, wallet compatibility, and the ability of Bitcoin nodes to verify transactions independently.

The crypto industry is increasingly concerned about the future ability of quantum computers to break the cryptography and signatures of digital wallets and steal investors' holdings of BTC.

Coinbase warns that changes and wallet migrations often require years of planning and coordination, urging developers to start now on the needed changes.

In concluding its paper, Coinbase Global says that it has begun preparing its own custody systems for quantum security.

The company says it is in active discussions with Bitcoin researchers, engineers, and developers who are part of the Bitcoin Security Consortium.

COIN stock has declined 47% over the last 12 months to trade at $181.79 U.S. per share. BTC is trading at $82,750 U.S. on Oct. 14.