Bitcoin Community Addressing Quantum Computing Risk, VanEck Says

According to VanEck's head of digital assets research, quantum computing poses a threat to Bitcoin, but the community is aware of the problem.

Matthew Sigel told CNBC on Friday that, although progress might be slow due to Bitcoin's decentralized structure, the community is actively addressing the matter.

Warnings have been raised by the crypto community about potential future quantum computer breakthroughs that could compromise Bitcoin's cryptographic security.

Certain participants, among them Bitcoin developers, have begun preparing for a post-quantum era by trialing quantum-resistant signatures on active sidechains.

“It’s a risk,” Sigel said. “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system.”

“The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years.”

Quantum computers are a reality, but they are error-prone, and no machine capable of cracking Bitcoin's cryptography exists at present. Bitcoin is currently the largest computer network worldwide.

Prominent firms in the sector, such as Coinbase, the largest US crypto exchange, and Blockstream, a Bitcoin infrastructure company, are already developing solutions.

In July, Coinbase announced plans to deploy a post-quantum signing pipeline that relies on secure enclaves and threshold cryptography.

Formed in July, the Bitcoin Security Consortium—comprising BlackRock, Fidelity Digital Assets, Block, and others—contributes funding and allocates engineers to open-source initiatives backing proposals such as BIP-360. BIP-360 is designed to introduce a new transaction output type that would mitigate long-term quantum computing risks.