Coinbase’s quantum researchers highlighted in a report on Tuesday that Algorand and Aptos have prepared their networks to address the potential threat of quantum computing, while warning that other proof-of-stake chains may be more vulnerable to attacks.
Coinbase's Quantum Computing and Blockchain Independent Advisory Committee has released a paper outlining the threats quantum computers pose to blockchain and proposing methods to prepare the network for this technology.
“A sufficiently powerful quantum computer could one day break the cryptographic systems that secure digital assets on major blockchains,” Coinbase stated. “The board is highly confident that such machines will eventually be built.”
Quantum computing is an emerging technology expected to far surpass today's most advanced supercomputers, raising concerns among some crypto analysts that it may eventually break blockchain algorithms and compromise cryptocurrency wallets.
Algorand and Aptos are better prepared for quantum threats.
Coinbase stated in its report that the Layer-1 blockchain Algorand has developed a "phased roadmap toward full quantum readiness" and is among the first networks to deploy cryptographic technologies specifically designed to resist quantum computers.
“At the trading and execution level, Algorand has already provided the cryptographic tools needed for quantum-resistant accounts,” the report stated, adding that users can create such accounts “without modifying the protocol.”
The report also states that Algorand has recently completed its first quantum-resistant transaction on mainnet, but its block proposal and committee voting mechanisms "remain vulnerable to quantum attacks," and the blockchain is researching mitigation solutions.
Coinbase stated that the competitive Layer-1 blockchain Aptos is "well-prepared for the transition to post-quantum secure transactions."
The report explains that on Aptos, user public keys are stored as metadata associated with accounts, and user addresses are not derived from the hash of their public keys.
Users who wish to achieve post-quantum security simply need to sign a transaction to update their authentication key to a post-quantum public key,” Coinbase said. “No transfer of assets to a new account is required.”
Proof-of-stake chains may face greater risks.
Coinbase warned that proof-of-stake blockchains, including Ethereum and Solana, may be more vulnerable to quantum computing threats due to the signature schemes used by validators to secure the network.
However, Coinbase also acknowledged that Solana has created a new signature scheme, allowing users to transfer their tokens to new addresses based on the upgraded scheme, making them “no longer vulnerable to quantum attackers.”
Coinbase stated that Ethereum also has a "clear roadmap to address this issue in the near future," including upgrading signatures to be quantum-resistant.
The report also discusses how the network will handle quantum-vulnerable tokens and wallets, recommending that blockchains notify users to migrate to quantum-safe wallets, and that wallets holding quantum-vulnerable assets will be revoked and permanently disabled.
However, the board stated that the threat from quantum computing "does not currently exist," as computers capable of threatening cryptographic assets "require several orders of magnitude more power than any available device today," which may take at least another decade.