Coinbase is urging Bitcoin developers to prepare for quantum computing threats, warning that protecting the network could require years of technical upgrades and industry coordination.
In an October 13 technical article, the exchange outlined potential changes to strengthen Bitcoin’s cryptography before quantum advances threaten its digital signatures. Coinbase said developers must consider transaction costs, block space, wallet compatibility and institutional custody.
Coinbase Proposes Quantum-Resistant Upgrades
Coinbase identified BIP-360 and P2TRv2 as potential approaches for supporting quantum-resistant signatures. It also recommended evaluating established standards, including ML-DSA and SLH-DSA, alongside alternatives such as SHRINCS.
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The exchange recommends hybrid signatures that retain existing spending options while introducing quantum-resistant protection. It also raised concerns about stateful signatures, which depend on properly maintained signing records. Errors in managing those records could expose funds to forged signatures.
Bitcoin Migration Poses Additional Risks
Coinbase said developers need to consider Bitcoin held in inactive wallets and wallets whose public keys are already exposed. Moving to new signature methods could also leave some holdings difficult to access. Any recovery process would need safeguards against quantum-capable attackers attempting to claim those funds.
The exchange recommended ensuring that at least one quantum-resistant signature scheme supports multiparty computation, which allows multiple parties to authorize transactions without exposing a complete private key in one place.
Coinbase said its proposals are intended to guide industry discussions rather than establish a final migration policy.
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