Fidelity Digital Assets analyzed that Bitcoin has a technical path to address the threat posed by quantum computers, but reaching social consensus among network participants will be the biggest challenge in the actual upgrade process.
In its report, “The Road to Quantum Resistance for Bitcoin,” released on the 1st, Fidelity said that no cryptographically relevant quantum computer (CRQC) currently exists at a level capable of breaking Bitcoin’s cryptographic system. However, it explained that once a sufficiently powerful quantum computer emerges, there is a risk that private keys could be extracted using public keys.
As an alternative, Fidelity highlighted Blockstream’s proposed hash-based quantum-resistant signature scheme, “SHRINCS.” Fidelity assessed that it could be implemented through a soft fork, but said that because of Bitcoin’s decentralized nature, building consensus among developers, miners, and node operators could prove more difficult than the technical development itself.
Max: Quantum resistance refers to the property of cryptographic technology that allows it to maintain security even against attacks by quantum computers. Public-key cryptography such as RSA and ECC could become vulnerable to powerful quantum computers, which is why post-quantum cryptography (PQC) technologies are being developed. In cryptocurrency, it refers to the ability to protect wallet private keys and digital signatures from quantum-computer attacks.