Coinbase has outlined recommendations to protect Bitcoin against future quantum computing threats, emphasizing flexible security upgrades, safer signatures, and a gradual migration strategy. The crypto exchange, which holds approximately 5% of existing Bitcoin in custody, wants developers to begin preparations before quantum computers threaten current cryptographic systems.
Coinbase Highlights Flexible Security Solutions
Coinbase recommends exploring post-quantum signature systems that protect funds without overwhelming Bitcoin’s limited block space. Additionally, it supports flexible output designs, including P2MR under BIP-360, that could accommodate future cryptographic upgrades.
The company also favors hybrid spending options that combine traditional signatures with quantum-resistant alternatives. Consequently, users could strengthen protection before developers settle on a final policy for legacy signatures.
However, Coinbase warns that stateful signatures introduce risks when wallets lose track of previously used signing states. It recommends evaluating stateless alternatives alongside stateful systems to reduce potential security failures.
Migration Challenges Remain
Coinbase also stresses institutional custody requirements, particularly compatibility with multi-party computation (MPC), which helps protect private keys. Moreover, developers should test signature sizes, verification speeds, transaction fees, and full-node performance before selecting preferred standards.
Significantly, Bitcoin faces another challenge: protecting dormant funds and wallets that cannot migrate before legacy signatures become unsafe. Coinbase urges developers to examine possible recovery mechanisms without creating opportunities for quantum attackers.
Hence, the company encourages early collaboration among researchers, wallet providers, and institutions. The exchange presents its recommendations as discussion points, not a finalized security policy.
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