Coinbase Advisory Committee releases report stating quantum computing threats are imminent; the crypto industry needs to develop response plans early.

Odaily Planet Daily reports that a 50-page report commissioned by Coinbase states that, although today’s quantum computers are not yet capable of breaking the encryption technologies of networks such as Bitcoin and Ethereum, large-scale quantum computers with fault tolerance will eventually be built, and the encryption industry must start preparing now. The report was written by an independent advisory committee, whose members include cryptographers and scholars such as Dan Boneh of Stanford University, Justin Drake of the Ethereum Foundation, and Sreeram Kannan of Eigen Labs.

The report says that estimates for when quantum computers will crack today’s encryption standards vary from several years to more than 10 years. The United States National Institute of Standards and Technology recommends migrating to post-quantum cryptography before 2035, and the report believes this timeline may be overly optimistic. While post-quantum cryptography already exists and is being standardized, post-quantum digital signatures can be tens to hundreds of times larger than existing signatures, which may increase block sizes by up to 38 times and bring challenges such as wallet migration. The Ethereum Foundation has proposed post-quantum digital signature solutions, and projects such as Solana are also testing post-quantum wallet designs. The report recommends adopting flexible transition strategies such as hybrid systems to ensure that future upgrades can be prepared for without sacrificing current security.