Coinbase researcher warns quantum computing could threaten Bitcoin mining and keys

Coinbase’s head of investment research, David Duong, warned that advances in quantum computing could threaten Bitcoin beyond wallet security and might be used to mine blocks far more efficiently, potentially undermining the network’s economic and security model. Quantum computing is debated as a potential threat to the crypto industry because more advanced machines that could break encryption have been theorized to reveal user keys and expose sensitive data.

In a LinkedIn post on Monday, Duong said the core risks on “Q-day” are cryptographically relevant quantum computers running “Shor’s and Grover’s Algorithms to undermine bitcoin’s cryptographic signature.” He noted that Bitcoin’s security relies on two cryptographic pillars: the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signatures and SHA-256 for proof-of-work mining.

Duong said quantum computers could therefore pose two separate threats: breaking private keys and allowing attackers to steal funds from vulnerable addresses, and mining blocks more efficiently, which would disrupt Bitcoin’s economic and security model. He said miners use computational power and energy to add blocks, quantum machines are speculated to be exponentially faster, and that attacks such as a 51% attack would require massive computing power and could allow a miner or group to control more than half of Bitcoin’s mining power and manipulate the blockchain.

Key Topics

Crypto, David Duong, Bitcoin, Quantum Computing, Ecdsa