A small yet expanding coalition of Bitcoin proponents and crypto fund managers is calling for the network to fast-track the development of quantum-resistant signatures. They contend that the perception of a potential “quantum threat” could present market risks well before it becomes a tangible reality.
Some backers are highlighting a draft Bitcoin Improvement Proposal termed BIP-360, which aims to introduce a post-quantum signature option for Bitcoin addresses that could be susceptible to future advancements in quantum computing.
Charles Edwards, the founder of quantitative Bitcoin (BTC) and digital asset fund Capriole, stated that the implementation must be completed and rolled out by 2026.
However, establishing the new standard would necessitate broader consensus among hardware wallet providers, node operators, and cryptocurrency exchanges, Capriole elaborated in a Thursday X post. “In the next few years, around 20-30% of Bitcoin could be compromised by a quantum hacker,” Edwards mentioned. “I propose that we eliminate all coins that do not transition to BIP-360 by 2028.”
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Bitcoin company leaders dismiss quantum urgency’s threat to Bitcoin
On the other hand, some industry observers view quantum computing as a short-term risk to Bitcoin’s pricing.
“Tip for those promoting quantum FUD: Bitcoin doesn’t use encryption. Get your facts straight, or it’s a giveaway,” posted Adam Back, co-founder and CEO of Blockstream and inventor of Hashcash, in a Thursday X post, asserting that the quantum computing threat remains “decades away.”
Samson Mow, CEO of Bitcoin technology firm Jan3, also ridiculed the notion that early quantum computing poses a threat to the Bitcoin network.
“Quantum computing can’t even factor 21, yet individuals are panic selling because they fear it will endanger Bitcoin,” Mow commented in a Wednesday X post.
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Taproot concerns and alternative proposals
The latest Taproot format for Bitcoin, deemed vulnerable to quantum threats, is witnessing a decline in usage—from 42% of transactions in 2024 to merely 20%—indicating that users may be concerned about Bitcoin’s susceptibility to quantum issues.
“I’ve NEVER witnessed the latest format losing adoption before. Taproot is Quantum Vulnerable, while older SegWit and Legacy are secure,” wrote Bitcoin analyst Willy Woo in a Wednesday X post.
Nevertheless, there is no concrete evidence linking the concerns over quantum computing to the decrease in Taproot adoption, as its use fluctuates based on factors such as crypto exchange dynamics, fee optimization, wallet compatibility, and batch spending trends.
The Taproot update is the most significant enhancement the cryptocurrency has seen since 2017, when Segregated Witness (SegWit) was activated. Its aim was to enhance both the privacy and efficiency of the Bitcoin network.
Contrarily, some cryptography experts argue that the Taproot upgrade is already resistant to quantum attacks. “When limited to script-path spends, Taproot is post-quantum secure,” stated Tim Ruffing, a cryptographer at Blockstream Research, in a research paper published on July 17.
“A quantum attacker can’t peer inside a Taproot output, meaning the attacker gains no insight into the Merkle root until it is disclosed,” the paper elaborated.
Meanwhile, Back, a prominent cryptographer, advocated for a new hash-based signature method as a viable post-quantum alternative for Bitcoin, where security would depend solely on hash function assumptions akin to those utilized in the existing design of the Bitcoin network.
Hash-based signature schemes “offer a promising route for securing Bitcoin in a post-quantum landscape,” serving as a quantum-safe substitute for the ECDSA and Schnorr signatures, according to the paper published by Back’s Blockstream Research on Dec. 5.
The Elliptic Curve Digital Signature Algorithm (ECDSA) employs elliptic-curve cryptography to validate the authenticity and integrity of a message. Schnorr signatures, another signature technique, are lauded for improving privacy and reducing data size by allowing multiple signatures to be combined into one.
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