Quantum computing could eventually break crypto wallets, and Coinbase says the fix must start now - Cryptopolitan

Crypto Insight Summary: * Coinbase’s Quantum Advisory Board urged blockchain developers and crypto holders on June 11 to begin migrating to quantum-resistant cryptography. * Around 6.9 million Bitcoins sit in wallets with publicly visible keys, including 1.7 million in legacy addresses likely tied to Satoshi Nakamoto and other early users. * No quantum machine can break blockchain encryption today, but NIST has set a 2035 deadline for finishing post-quantum cryptography migration. **In its report released on June 11, Coinbase’s Quantum Advisory Board (CQAB) urged blockchain developers and crypto holders to begin migrating toward quantum-resistant cryptography.** They warned that billions of dollars’ worth of cryptocurrencies stored in wallets can be stolen by quantum computers in the future when quantum computing technology reaches a sufficiently mature stage. This major threat is not to mining nor block production. As per the position paper issued by the Coinbase Board in April, Bitcoin’s proof-of-work scheme depends on hashing, which quantum algorithms can only slightly accelerate. According to the [Project Eleven 2026 Quantum Threat Report](https://report.projecteleven.com/), a quantum computer with an ability to run Shor’s algorithm could theoretically reverse engineer the private key from its publicly visible counterpart. Among these, there are around 1.7 million Bitcoins stored in legacy P2PK addresses with keys made public for good. These legacy P2PK addresses, most likely belonging to early users of Bitcoin including Bitcoin’s pseudonymous creator Satoshi Nakamoto, have been described in the latest report of the CQAB on abandoned coins. National Institute of Standards and Technology (NIST) recommended that companies finish implementing [post-quantum cryptography (PQC) standards by 2035](https://csrc.nist.gov/projects/post-quantum-cryptography). Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Long-term (1 quarter-1 year) Reasoning: Quantum threat is distant, with NIST setting 2035 as migration deadline; immediate market impact minimal.