Bitcoin and Ethereum face significant vulnerabilities in the face of advancing quantum computing, according to a recent report from Mysten Labs [1]. The study highlights that these blockchain networks rely on the Elliptic Curve Digital Signature Algorithm (ECDSA), which is at risk of being compromised by quantum algorithms like Shor’s. In contrast, blockchains that use the EdDSA signature scheme—such as Solana, Sui, and Near—are better positioned to resist quantum threats due to their structural advantages and ease of upgrade [1].
Kostas Chalkias, co-founder and Chief Cryptographer at Mysten Labs, emphasized the urgency of preparing for post-quantum cryptographic standards. He noted that governments worldwide are already issuing mandates for phasing out classical cryptographic algorithms like ECDSA and RSA by 2030 or 2035 [1]. For blockchains that aim to support sovereign assets, national treasuries, ETFs, or CBDCs, Chalkias argued, adopting post-quantum security standards will soon become a necessity for long-term credibility and mass adoption [1].
The core issue lies in the ability of quantum computers to rapidly solve complex mathematical problems using Shor’s Algorithm, which can break widely used cryptographic systems like ECDSA and RSA [1]. This capability could allow attackers to reverse-engineer private keys from public blockchain data, undermining the security of digital assets. Chalkias warned that even if users retain their private keys, they may not be able to generate post-quantum secure proofs of ownership, depending on how those keys were originally generated and how much associated data has been exposed over time [1].
Upgrading Bitcoin and Ethereum to quantum-resistant algorithms would require a hard fork, according to San Jose State University computer science professor Ahmed Banafa [1]. This process involves changing wallet addresses, migrating funds, and managing the technical and logistical challenges that come with such a transition. Banafa pointed out that the likelihood of such a hardfork occurring is low, citing the Ethereum community’s historical reluctance to roll back the blockchain following the 2015 hack that led to the creation of Ethereum Classic [1]. He warned that similar divisions could arise in the Bitcoin community if users reject proposed upgrades [1].
Another major challenge is the sheer scale of Bitcoin and Ethereum wallets in circulation. If users fail to upgrade their accounts or secure their assets, they could become vulnerabilities in the network [1]. Banafa noted that users who lose funds due to a lack of post-quantum security might hold the network responsible, adding to potential backlash against the blockchain’s infrastructure [1].
Interestingly, Mysten Labs noted that if Bitcoin had used EdDSA from the start, even the legendary wallets of Satoshi Nakamoto could be quantum-safe [1]. However, Banafa acknowledged that this is a retrospective argument—when Bitcoin launched in 2009, quantum computing was not a major concern. At that time, SHA-256 was considered secure enough, with expectations that it would remain unbreakable for years [1]. The rapid advancement of quantum computing has since changed that assumption [1].
—
[1] Source: [1]title: “Bitcoin and Ethereum Aren’t Ready For Quantum Computers, Researcher Says”, (url: https://decrypt.co/332788/bitcoin-ethereum-arent-ready-quantum-computers-researcher-says)