Coinbase Says Quantum Threat to Blockchains Requires Planning, With Algorand and Aptos Better Prepared

As advances in quantum computing raise long-term concerns about blockchain security, Algorand and Aptos are relatively well prepared for the transition, according to a report by a Coinbase advisory board.

Cointelegraph reported on April 22 that Coinbase’s Independent Advisory Board on Quantum Computing and Blockchain said sufficiently powerful quantum computers could break the cryptographic systems used by major blockchains today. The board said technology at that level is ultimately likely to become reality.

Quantum computing is a next-generation technology expected to deliver computing power far beyond that of conventional supercomputers. Some experts have raised concerns that it could eventually crack blockchain encryption algorithms and threaten wallet security.

According to the report, Algorand has established a phased roadmap for adopting quantum-resistant cryptography and has already implemented some of the related technology. It was also assessed as having a structure that allows users to create quantum-resistant accounts without a separate protocol change. Still, some areas, including its block proposal and validation committee structure, require further work.

Aptos was also assessed as structurally well positioned for a transition to quantum-safe security. Its account addresses are managed as metadata rather than as hashes of public keys, allowing users to switch to quantum-resistant keys with a simple authentication-key update. That means users can upgrade their security setup without moving assets.

The report also said proof-of-stake blockchains may be relatively more vulnerable. Major proof-of-stake networks including Ethereum and Solana could be exposed to quantum attacks because of the way validator signatures are structured. Coinbase added that Solana is preparing by introducing a new signing system, while Ethereum is also drawing up a roadmap to migrate to quantum-resistant signatures.

The report said wallets vulnerable to quantum attacks may require measures to encourage users to move assets and, over the longer term, restrictions on the use of those wallets.

Even so, Coinbase said no quantum computer currently exists that is capable of threatening blockchains. It expects it will take at least another 10 years for such technology to become reality.