Crypto's Quantum Computing Challenge: What's at Stake?

The crypto world is facing a new kind of challenge: quantum computing. This advanced technology could potentially break the cryptography that keeps blockchain networks secure. To tackle this issue, Coinbase, a major crypto exchange, has set up a special advisory board. This group will study the risks and guide the industry on how to prepare. Quantum computers could make current cryptographic methods useless. This means anyone with a powerful enough quantum computer could access and spend funds from any crypto address. However, both crypto and traditional finance can upgrade their systems to be quantum-resistant. The advisory board, called the Coinbase Independent Advisory Board on Quantum Computing and Blockchain, will publish reports, make recommendations, and stay updated on quantum computing advancements. Notable members include Scott Aaronson from the University of Texas at Austin and Dan Boneh from Stanford University. Recent progress in quantum computing, like Google's Willow chip, has sparked renewed interest in the field. Experts predict that the threat of quantum computers breaking crypto will become more real around the mid-2030s. Big tech companies like Google and Amazon are already taking steps to prepare for this.Crypto networks face a unique challenge because they are decentralized. Unlike centralized companies, making changes to these networks takes longer and involves more debate. This means the crypto world needs to start preparing for quantum threats now, even if they seem far off. Interestingly, crypto is becoming more like traditional finance. Many blockchain networks are now operated by centralized fintech companies. This shift could make it easier for the crypto market to upgrade and adapt to quantum threats. However, Bitcoin remains highly decentralized. This makes it harder to implement changes. The last major upgrade to Bitcoin's protocol was Taproot in 2021. There could be disagreements about how to handle old, seemingly lost coins if quantum computers become a reality. Some quantum computing startups hope that old coins won't be frozen. They see an opportunity to access the vast amounts of bitcoin that are currently locked away.