In a report released Tuesday, Coinbase's quantum researchers highlighted the preparations Algorand and Aptos have made to their networks in response to the potential threat of quantum computing, while warning that other proof-of-stake chains may be more vulnerable to attack.
Coinbase’s independent advisory board on quantum computing and blockchain has published a paper outlining the threats that quantum computers pose to blockchain and proposing ways to prepare networks for the technology.
“A sufficiently powerful quantum computer could one day break the encryption systems protecting the security of major blockchain digital assets,” Coinbase stated. “The board is highly confident that such a machine will eventually be built.”
Quantum computers are an emerging technology that is expected to be significantly more powerful than today's top supercomputers, which has led some crypto analysts to worry that the technology could eventually crack blockchain algorithms and compromise crypto wallets.
Algorand and Aptos are better prepared for the quantum threat.
In its report, Coinbase stated that the Layer-1 blockchain Algorand has developed a "phased roadmap toward full quantum readiness" and is one of the first networks to deploy encryption technologies designed to withstand quantum computers.
"At the transaction and execution levels, Algorand already provides the cryptographic tools needed to support quantum-resistant accounts," the report states, adding that users can create such accounts "without modifying the protocol."
The report also stated that Algorand recently completed its first quantum-resistant transaction on the mainnet, but the block proposal and committee voting mechanisms "remain vulnerable to quantum attacks," and the blockchain is researching hardening solutions.
Coinbase stated that the competing Layer-1 blockchain Aptos "is fully prepared for the transition to post-quantum-secure transactions."
The report explains that on Aptos, user public keys are stored as metadata associated with accounts, and user addresses are not derived from the hash of their public keys.
“Users who want to achieve post-quantum security only need to sign a single transaction to update their authentication key to a post-quantum public key,” Coinbase stated. “There is no need to transfer assets to a new account.”
Proof-of-Stake blockchains may face greater risks.
Coinbase warns that proof-of-stake blockchains, including Ethereum and Solana, may be more vulnerable to quantum computing threats due to the signature schemes that validators use to secure the network.
However, Coinbase also acknowledged that Solana has created a new signature scheme, allowing users to transfer tokens to new addresses based on the upgraded scheme, and that they will "no longer be exposed to quantum attackers."
Coinbase stated that Ethereum also "has a clear roadmap to address this issue in the near future," which includes upgrading signatures to a quantum-resistant scheme.
The report also discusses how the network should handle quantum-fragile tokens and wallets, recommending that the blockchain notify users to migrate to quantum-safe wallets, while wallets holding quantum-fragile assets will be revoked and permanently invalidated.
However, the board stated that the threat of quantum computing "is not currently present" because a computer capable of threatening crypto assets "would need to be several orders of magnitude more powerful than any device available today," which could be at least a decade away.
