A coalition of financial institutions and crypto infrastructure firms has formed the Bitcoin Security Consortium, committing at least $15 million over three years to defend Bitcoin's cryptography against the emerging quantum computing threat. The effort follows a March report from Alphabet researchers warning that quantum computers could eventually put millions of BTC at risk.
Consortium targets Bitcoin's quantum vulnerability
A group of leading financial institutions and crypto companies plans to spend at least $15 million over the next three years on the Bitcoin Security Consortium, aiming to protect the long-term security and resilience of the Bitcoin blockchain ecosystem. The main focus is preparing Bitcoin for quantum computing, a threat that has been a source of growing concern for Bitcoin investors.
Today's computers aren't powerful enough to break Bitcoin's cryptography, and the blockchain has never been directly compromised, though scams and exchange hacks have drained crypto wallets in the past.
Alphabet's March report on the quantum threat
In March, Alphabet researchers published a groundbreaking report estimating that 6.7 million of the 20 million BTC in circulation could be at stake if quantum computers eventually break Bitcoin's cryptography. Ark Invest's Cathie Wood responded, saying that the ability of quantum computers to break Bitcoin's cryptography is still many years away, and that the value at risk is likely significantly lower than Alphabet's estimate.
BlackRock, Coinbase, and Strategy back the effort
The consortium has backing from major players, including BlackRock, which holds roughly 3.5% of all Bitcoin, along with Coinbase Global and Strategy, formerly known as MicroStrategy. Motley Fool contributor Dominic Basulto called the launch a bullish factor for Bitcoin, arguing that pooling resources across institutions could help the network avoid a large-scale quantum attack.
AI adds a second front
The quantum threat isn't the only one drawing attention. Anthropic's newest Claude model demonstrated the ability to crack one type of very strong post-quantum signature, the HAWK algorithm. Bitcoin doesn't use HAWK, and the vulnerability Claude exploited can be cured with larger signatures, but Basulto said he is now more concerned about AI than quantum computing as a near-term risk to Bitcoin.
Source: The Motley Fool
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