TL;DR
Coinbase is working with developers and researchers to prepare Bitcoin’s security for potential threats from quantum computers.
The exchange proposes introducing quantum-resistant signatures and developing a gradual transition to protect funds without disrupting the network.
Coinbase custodies approximately 5% of all existing BTC and believes the transition to post-quantum security systems could take several years.
Coinbase presented its proposals to prepare the Bitcoin network for threats posed by quantum computing , a technology that could compromise the cryptographic systems currently used to secure transactions.
The exchange, which custodies approximately 5% of all existing BTC , explained that it is already adapting its own systems and collaborating with Bitcoin developers and researchers. It also participates in the Bitcoin Security Consortium and supports open-source projects.
The company warned that transitioning to post-quantum security mechanisms will take several years , making it necessary to begin preparations before quantum computers capable of breaking current cryptographic systems become available.
Coinbase Proposes New Signatures and a Gradual Migration
One of Coinbase’s main recommendations is to introduce digital signatures resistant to quantum attacks without compromising the ability of nodes to verify transactions.
Among the technical alternatives under consideration are P2MR (BIP-360) and P2TRv2 , designs that could facilitate the introduction of new cryptographic algorithms.
The exchange also proposes using hybrid systems that would allow Bitcoin to be spent using traditional ECDSA or Schnorr signatures, or post-quantum signatures during the transition period.
Coinbase believes algorithms such as ML-DSA, SLH-DSA, and FN-DSA , along with other alternatives, should be evaluated based on their size, verification speed, security, and compatibility with wallets and institutional custody systems.
What Will Happen to Bitcoin That Cannot Be Migrated?
One of the most complex challenges involves BTC stored in older addresses , particularly those whose public keys are already exposed.
Coinbase warns that some holders may fail to move their funds in time, while others may have lost their private keys or recovery phrases.
The company proposes exploring mechanisms to protect or recover those assets without creating new opportunities for attacks.
It also considers it important to maintain compatibility with multi-party computation (MPC) systems used by major custodians to protect their keys.
Coinbase clarified that its proposals are contributions to the technical discussion, not final decisions about the Bitcoin protocol. The selection of algorithms, transition rules, and treatment of older funds will need to be discussed among network participants.
