Coinbase has unveiled a set of technical proposals aimed at preparing the Bitcoin network for the emerging threat posed by quantum computing, a technology that could eventually undermine the cryptographic foundations securing BTC transactions. The exchange, which custodies approximately 5% of all existing Bitcoin, is collaborating with Bitcoin developers, researchers, and the Bitcoin Security Consortium to address the long-term challenge. Coinbase emphasized that it is already adapting its own internal systems while supporting open-source projects working on post-quantum solutions.
The company warned that a full transition to post-quantum security mechanisms will likely take several years, making it essential to begin preparations now, before quantum computers capable of breaking current cryptographic systems become a practical reality. Among the core recommendations is the introduction of digital signatures resistant to quantum attacks without impairing the ability of nodes to verify transactions. Coinbase highlighted technical alternatives under consideration, including P2MR (BIP-360) and P2TRv2, designs that could facilitate the deployment of new cryptographic algorithms on the network.
Coinbase also proposed the use of hybrid systems during a transition period, allowing Bitcoin to be spent using traditional ECDSA or Schnorr signatures, or post-quantum signatures. The exchange suggested evaluating algorithms such as ML-DSA, SLH-DSA, and FN-DSA, along with other candidates, based on factors like signature size, verification speed, security properties, and compatibility with wallets and institutional custody systems.
One of the most difficult challenges identified by Coinbase concerns BTC stored in older addresses, particularly those whose public keys are already exposed. The company warned that some holders may fail to move their funds in time, while others may have lost private keys or recovery phrases altogether. Coinbase proposed exploring mechanisms to protect or recover those assets without creating new attack vectors. It also stressed the importance of maintaining compatibility with multi-party computation (MPC) systems used by major custodians to secure their keys.
Coinbase clarified that its proposals represent contributions to an ongoing technical discussion rather than final decisions about the Bitcoin protocol. The ultimate selection of algorithms, transition rules, and treatment of legacy funds will need to be debated and agreed upon by the broader network participants.
