{"id":75930,"date":"2026-07-26T01:02:11","date_gmt":"2026-07-26T01:02:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/a-quantum-computer-could-one-day-break-crypto-security-coinbase-is-preparing-now\/"},"modified":"2026-07-26T01:02:11","modified_gmt":"2026-07-26T01:02:11","slug":"a-quantum-computer-could-one-day-break-crypto-security-coinbase-is-preparing-now","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/a-quantum-computer-could-one-day-break-crypto-security-coinbase-is-preparing-now\/","title":{"rendered":"A Quantum Computer Could One Day Break Crypto Security \u2014 Coinbase Is Preparing Now"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Coinbase is building a quantum-resistant version of the system protecting about 99.9% of its custodial assets.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The company will bring Bitcoin developers, cryptographers and researchers together at Stanford in August.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The company is contributing funding and engineers to Bitcoin\u2019s wider post-quantum security effort.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Coinbase Warns Crypto\u2019s Protection Could Eventually Break<\/h2>\n<p>Crypto exchange Coinbase (Nasdaq: COIN) has started preparing its custody systems and infrastructure for a future in which powerful quantum computers could defeat the cryptography protecting Bitcoin, Ethereum and other blockchain networks.<\/p>\n<p>Coinbase Chief Information Security Officer Jeff Lunglhofer outlined the company\u2019s position in <a href=\"https:\/\/www.coinbase.com\/blog\/what-coinbase-is-doing-to-prepare-for-post-quantum-cryptography\" target=\"_blank\" rel=\"noopener noreferrer\">a July 23 company blog post<\/a>:<\/p>\n<blockquote>\n<p>\u201cA large-scale quantum computer capable of breaking current cryptography will eventually be built. No one knows exactly when. But the work to prepare needs to start now, not when it\u2019s urgent.\u201d<\/p>\n<\/blockquote>\n<p>The company said its Independent Advisory Board on Quantum Computing and Blockchain has high confidence that a fault-tolerant quantum computer will eventually be developed. <a href=\"https:\/\/news.bitcoin.com\/coinbase-forms-quantum-advisory-board-as-post-quantum-risks-threaten-blockchain-security\/\">Coinbase formed the board to assess long-term quantum risks facing digital assets<\/a>, according to Coinbase\u2019s quantum advisory board announcement.<\/p>\n<p>\u201cThe cryptography that secures virtually every major blockchain is vulnerable when it arrives. The threat is not imminent, but the timeline is genuinely uncertain,\u201d Lunglhofer added.<\/p>\n<p>The warning does not suggest that quantum computers can currently defeat the cryptography securing major blockchains. Instead, Coinbase argues that upgrading global blockchain systems, moving millions of users and replacing vulnerable cryptographic methods could take years, making early preparation essential.<\/p>\n<h2>Industry Standards Are Already Shifting<\/h2>\n<p>Coinbase\u2019s preparations align with broader cybersecurity efforts. In June 2026, the U.S. National Institute of Standards and Technology (NIST) <a href=\"https:\/\/www.nist.gov\/news-events\/news\/2026\/06\/working-drafts-post-quantum-cryptography-updates-piv-standards\" target=\"_blank\" rel=\"noopener noreferrer\">released draft updates to federal post-quantum cryptography standards<\/a> that incorporate newly standardized quantum-resistant algorithms for identity verification and authentication, underscoring that organizations should continue preparing for the transition to post-quantum security.<\/p>\n<p>The proposed updates build on NIST\u2019s wider effort to modernize cryptographic standards as quantum computing advances. The revisions are intended to help federal agencies and industry adopt quantum-resistant technologies while maintaining interoperability.<\/p>\n<h2>Coinbase Builds Quantum-Safe Custody System<\/h2>\n<p>Coinbase is developing PQ-CoreKMS, a post-quantum version of its proprietary key management system that protects approximately 99.9% of the assets it holds in custody. Its existing CoreKMS system relies on multiparty computation (MPC), which distributes control of private keys so that no single party can reconstruct a customer\u2019s full key.<\/p>\n<p>Within the next year, Coinbase plans to introduce an automated signing system that combines secure enclaves, secret sharing, and threshold cryptography, enabling support for multiple post-quantum signature algorithms as blockchain networks begin adopting them. Over the following two to three years, Coinbase researchers intend to expand MPC capabilities further to accommodate lattice-based and potentially other post-quantum signing schemes.<\/p>\n<p>In parallel, the exchange is cataloging cryptography used across its infrastructure, including systems that protect customer data and authentication. Coinbase plans to rank each system according to its importance, exposure, and migration difficulty.<\/p>\n<h2>Bitcoin Security Push Requires Industry Cooperation<\/h2>\n<p>Coinbase will co-host a working session with Stanford in August for Bitcoin Core developers, researchers, and cryptographers. The group will examine potential migration strategies and the technical challenges involved in moving bitcoin to quantum-resistant security.<\/p>\n<p>The crypto exchange is also a founding member of the Bitcoin Security Consortium, alongside companies including BlackRock, Fidelity Digital Assets, Block, Blockstream and Strategy. <a href=\"https:\/\/news.bitcoin.com\/9-wall-street-and-crypto-giants-unite-to-protect-bitcoin-with-15-million-initiative\/\">The consortium launched with a $15 million industry initiative<\/a> to support open-source developers researching Bitcoin\u2019s long-term security. Coinbase said it will also donate to developers working on quantum-related security and assign its engineers to open-source efforts, including proposals such as BIP-360.<\/p>\n<p>\u201cNo one company can solve this alone. The only way through is together: researchers, developers, protocols, and companies all moving in the same direction,\u201d Lunglhofer concluded, emphasizing:<\/p>\n<blockquote>\n<p>\u201cThe quantum future is coming, and the time to start preparing is now.\u201d<\/p>\n<\/blockquote><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/a-quantum-computer-could-one-day-break-crypto-security-coinbase-is-preparing-now\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Coinbase is building a quantum-resistant version of the system protecting about 99.9% of its custodial assets. The company will bring Bitcoin developers, cryptographers and researchers together at Stanford in August. The company is contributing funding and engineers to Bitcoin\u2019s wider post-quantum security effort. Coinbase Warns Crypto\u2019s [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":75931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75930"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75930"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75930\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75931"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}