Quantum Computing Poses Dual Threat to Bitcoin Mining and Wallet Security, Warns Coinbase Research

Quantum computing presents a two-pronged risk to Bitcoin that extends beyond the commonly discussed threat to wallet security, according to David Duong, Coinbase's head of investment research.

In a Monday LinkedIn post, Duong outlined how cryptographically relevant quantum computers could undermine Bitcoin's security framework by exploiting both the Elliptic Curve Digital Signature Algorithm used for transaction signatures and the SHA-256 protocol underlying proof-of-work mining ^[1].

While the threat to private keys allowing potential theft from vulnerable addresses is widely recognized, Duong highlighted a secondary concern: quantum computers could mine blocks with significantly greater efficiency than current technology, potentially disrupting Bitcoin's economic and security equilibrium ^[1].

The superior computational capabilities of quantum machines could theoretically enable attacks requiring massive computing power, such as 51% attacks where control over the majority of mining power allows blockchain manipulation ^[1].

However, Duong emphasized that quantum mining remains a lower-priority concern due to scaling limitations, with signature migration being the more pressing issue. He noted that current quantum machines are far too underpowered to break Bitcoin's cryptography ^[1].

The timeline for quantum threats remains contested, with some experts like cypherpunk Adam Back suggesting viable technology is decades away, while others including Capriole founder Charles Edwards argue for more immediate preparedness ^[1].