Coinbase announced that it has assembled a team of experts to assess quantum computing’s emerging threats to cryptography. The exchange has hired computer science, cryptography, and fintech experts from Harvard University and Stanford University.
Coinbase, a US-based cryptocurrency exchange, has announced the creation of a task force comprised of computer science, cryptography, and fintech experts from Stanford University, Harvard University, and the University of California.
The team plans to investigate the potential risks that quantum computing poses to cryptography. The team will also include experts from Coinbase, the Ethereum Foundation, and DeFi platform EigenLayer.
Coinbase officials say quantum computing could decrypt wallet private keys
Jeff Lunglhofer, Coinbase’s chief information security officer, said in an interview that quantum computing has the potential to defeat current cryptographic mechanisms, including wallets where users store digital assets and cryptographic mechanisms designed to protect private keys. He emphasized that the underlying technology for crypto assets relies on complex mathematical problems that would take a normal computer “thousands of years to solve.”
Bitcoin uses private keys to secure the network. These private keys are long strings of random numbers and letters, visible only to their owner, and can only be guessed through lengthy trial and error. But quantum computing has “a million times more horsepower” and can solve these problems faster.
Rungelhofer said there are security risks. However, he noted that quantum computing is not an immediate threat to cryptography and may remain so for the next decade. Coinbase executives agree with other experts that large technology companies like Google have led the development of quantum computers and their capabilities over the past decade.
However, its development has only worked on a small scale and lacks advanced capabilities to decipher the security mechanisms of the cryptocurrency ecosystem that protect Bitcoin and other blockchain networks.
Lunglhofer also emphasized that the purpose of Coinbase’s new advisory board is to explore the impending impact of quantum computing in a “non-hype-based way” and foster future security efforts.
He added that once the quantum computing era begins, the industry will take security measures such as using larger private keys and using what he calls “noise” to prevent computers from detecting the key’s location. However, he said it will take years to incorporate these security measures.
David Duong says CRQC is a real threat to blockchain technology
David Duong, Coinbase’s global head of investment research, also discussed quantum threats to crypto on LinkedIn. post. He also emphasized that while the threat is not imminent, there is growing concern among crypto investors about technological advancements.
Coinbase officials said quantum computers will solve “some of the world’s most complex problems,” but will also require upgrades to many cryptographic systems currently in use.
Duong said the ultimate risk will come during what he calls “Q-day,” when cryptographic quantum computers (CRQCs) have the ability to execute Scholl and Grover’s algorithms, putting the cryptographic technology underlying Bitcoin at risk.
duong said Quantum computing poses two threats to cryptography, including the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signatures and SHA-256 for proof-of-work mining.
He added that breakthroughs in quantum computing could create loopholes that attackers can exploit to compromise private keys and steal from vulnerable wallets. Duong also said that advanced quantum computers could mine blocks more efficiently and disrupt Bitcoin’s economic and security model.
