Quantum computing may pose broader risks to bitcoin than wallet hacks, potentially undermining both its economic and security model, according to Coinbase investment research head David Duong.
Duong said advances in quantum computing could allow attackers to exploit cryptographic weaknesses and mine bitcoin blocks more efficiently.
The core risks on Q-day are cryptographically relevant quantum computers running Shor’s and Grover’s algorithms to undermine bitcoin’s cryptographic signature.
David Duong said.
Bitcoin’s security relies on the Elliptic Curve Digital Signature Algorithm for transactions and SHA-256 for proof-of-work mining, both of which could be challenged by future quantum systems.
Duong warned quantum machines could threaten private keys and also disrupt mining economics by concentrating computational power.
A surge in quantum-powered mining could theoretically increase the risk of a 51% attack by allowing a single entity to dominate the network.
We think quantum mining itself remains a lower-priority concern for now given scaling constraints, making signature migration the central issue.