Coinbase Pushes for Early Quantum-Resistant Bitcoin Security
Coinbase is urging Bitcoin developers to begin preparing for quantum computing threats, warning that a safe upgrade could take years. In a technical paper, the company proposed stronger digital signatures, flexible wallets, and a phased migration process. It pointed to BIP-360 and its P2MR format as possible groundwork, while noting that the proposal alone does not provide quantum-resistant signatures.
Coinbase, which reports custody of roughly one-twentieth of all existing bitcoin, released its technical paper on October 13. It wants developers and wallet providers to coordinate early, and says disputes over old coins should not block security work. Bitcoin’s current ECDSA and Schnorr signatures rely on public-key cryptography that powerful quantum machines could theoretically undermine.
The paper highlights BIP-360’s P2MR format, derived from Taproot, as possible groundwork, though it lacks quantum-resistant signatures by itself. Coinbase also suggests studying P2TRv2 and algorithms such as ML-DSA, SLH-DSA, FN-DSA, and SHRINCS, weighing signature size, speed, fees, and hardware needs.
If quantum computers eventually threaten Bitcoin’s cryptography, holders, exchanges, custodians, and wallet users could face heightened security risks. A phased migration may require new wallet formats and coordination among developers, service providers, and large institutions. Because larger signatures could consume more block space, transaction fees may rise during transition periods. The outcome may depend on how quickly the ecosystem adopts compatible standards and whether users can move funds safely without disrupting everyday payments or custody arrangements.