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Fidelity flags future quantum risk for Bitcoin
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Fidelity flags future quantum risk for Bitcoin

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  • Fidelity Digital Assets says quantum computers could eventually threaten Bitcoin’s private keys.
  • The threat is not immediate because suitable quantum computers do not yet exist.
  • Researchers are testing quantum-resistant signatures, including the proposed SHRINCS system.

Fidelity Digital Assets says powerful quantum computers could eventually derive Bitcoin (CRYPTO:BTC) private keys from exposed public keys.

The firm said current Bitcoin signatures could require replacement or extra protection if quantum computing advances far enough.

Fidelity said keeping quantum-resistant key sizes small will be important for preserving Bitcoin’s transaction capacity.

Bitcoin currently uses ECDSA and Schnorr signatures to authorise transactions across the network.

Fidelity said larger quantum-resistant signatures could use more block space and reduce transaction capacity.

One proposed solution is SHRINCS, which combines a smaller stateful signature with a larger recovery option.

Fidelity said a soft fork could introduce new signature types, but wallet providers and other network participants would need to support the change.

At the time of reporting, Bitcoin price was $77,311.21.

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