Galaxy has launched a new initiative aimed at preparing Bitcoin for the potential threat posed by quantum computing.
The firm, which is spearheaded by cryptocurrency bull Mike Novogratz, has $5 million in grants to fund those developers who are specifically focused on post-quantum security solutions.
The Galaxy Bitcoin Quantum Readiness Initiative will support efforts to develop new signature schemes, Bitcoin upgrade proposals, wallet migration solutions, and so on.
The firm has noted that no quantum computer today can break Bitcoin’s security, but that could change "faster than expected," and the Bitcoin community is too conservative to implement a fix fast.
The initiative will be built around developer funding, ongoing research through Galaxy Research, and a Quantum Advisory Council composed of experts in quantum computing and cryptography.
"There’s a gap between the quantum computing world, which is moving fast, and the Bitcoin development world, which is just beginning to engage with post-quantum cryptography in earnest," Alex Thorn, the head of research at Galaxy Digital, said in a statement.
The company said Bitcoin’s reliance on elliptic curve cryptography creates a long-term risk if sufficiently powerful quantum computers become available. However, Galaxy emphasized that no such quantum computer currently exists and that Bitcoin still has time to prepare.
Quantum risk is real
Recently, Galaxy published an insightful report that examines Bitcoin’s potential vulnerabilities related to rapid advancements in the realm of quantum computing.
According to the report, the main risk comes from the possibility that future quantum computers could be capable enough to break the flagship cryptocurrency's elliptic curve digital signatures.
Millions of coins could be at risk under certain scenarios, according to some estimates.
However, the firm argued that the risk is recognized and that developers are currently exploring mitigation strategies.
Slow-moving Bitcoin governance remains a major hurdle. BTC has no central authority, so any quantum-resistance upgrade would require great coordination among developers, miners, and so on.
Dan Burgin
U.Today Editorial Team
