Coinbase Builds Post-Quantum Bitcoin Custody Plan for $250B in Assets

Cryptocurrency exchange Coinbase is accelerating preparations for the post-quantum era of Bitcoin (BTC) safety amid growing sector fears. Several platforms are looking to protect assets if a quantum computer becomes powerful enough to break digital assets’ cryptography.

Coinbase Maps Out New Fallback Architecture

The exchange has set a goal to be prepared regardless of the individual activities of networks that might not be compatible with multi-party computation (MPC). Coinbase head of cryptography Yehuda Lindell explained that the approach is key because retooling might differ.

Crypto firms are in top gear for a possible Q-day as supercomputer development continues. The risks remain top of the agenda, with experts projecting that bad actors could target a slew of networks, especially dormant assets.

Practically, it is unlikely that all blockchains will use post-quantum safety mechanisms. In fact, some networks such as Ethereum and XRP have detailed roadmaps in preparation. Meanwhile, Bitcoin’s approach is delayed largely due to community governance factors and the controversy surrounding decade-old dormant assets. 

As custodian for BlackRock’s spot Bitcoin ETF, Coinbase is moving ahead to secure assets from multiple institutions worth about $250 billion. The traditional Bitcoin MPC, which lets multiple players hold shares of a private key without making it vulnerable, may not be used across the board.