Galaxy has launched a $5 million initiative to protect Bitcoin from potential quantum computing threats, involving developer grants and expert research.
Galaxy has introduced a new initiative aimed at safeguarding Bitcoin against the future threats posed by quantum computing, committing up to $5 million in grants to support developers and researchers in this field.
"Today we're launching the Galaxy Bitcoin Quantum Readiness Initiative. No quantum computer today can break Bitcoin's security, but that could change faster than expected. We love Bitcoin and believe in its long-term importance." — Galaxy
The Bitcoin Quantum Readiness Initiative encompasses a robust research program and will feature an advisory board of experts specializing in quantum computing and post-quantum cryptography.
Developers can now submit applications for project funding, which will be distributed in stages based on achieved milestones. Galaxy has pinpointed four main focus areas for funding:
- Creating and testing quantum-resistant transaction methods;
- Implementing post-quantum digital signature schemes;
- Developing migration tools for wallets and custodians;
- Conducting security audits on proposed solutions.
Galaxy Research will also produce informative resources on the risks of quantum computing for Bitcoin and strategies for mitigation, targeting developers, institutional investors, and government officials.
The initiative's advisory board will guide research direction and includes prominent figures like Barry Sanders from the University of Calgary and Eran Tromer from Boston University. Alex Thorn, Galaxy's head of research, emphasized the urgency of closing the gap between fast-evolving quantum technology and Bitcoin's slow development pace.
“There is a gap between rapidly advancing quantum computing and Bitcoin development, which is just beginning to seriously address post-quantum cryptography,” said Thorn.
Presently No Immediate Threat
Currently, Bitcoin's security relies on elliptic curve cryptography for digital signatures, which could be vulnerable if a powerful quantum computer emerges. Nonetheless, such technology does not yet exist, and Galaxy believes its development timeline is accelerating.
The principal concern involves digital signatures and wallets with exposed public keys. According to Coinbase’s advisory council, while Bitcoin’s mining and blockchain history are secure, preparations for quantum threats remain complicated by the decentralized nature of Bitcoin's governance, which necessitates prolonged consensus for any protocol updates.
U.S. Moves Toward New Cryptography Standards
In August 2024, the U.S. National Institute of Standards and Technology (NIST) approved initial post-quantum cryptography standards — a move underscored by a June 2026 executive order from President Donald Trump to hasten the adoption of these new algorithms across federal information systems.
Agencies must address potential quantum threats by the end of 2030, with plans for a phased transition to post-quantum technologies starting as early as 2028 for key systems.
Proposals for Bitcoin Protocol Changes
Developers are evaluating two key proposals aimed at enhancing Bitcoin's resilience against quantum threats: BIP-360, which introduces a new output type called Pay-to-Merkle-Root (P2MR), and BIP-361, which outlines a gradual transition away from existing signature schemes like ECDSA and Schnorr.
BIP-360 is designed to fortify Bitcoin against extended quantum attacks by prohibiting transactions to certain vulnerable address types within a specified timeframe. Meanwhile, BIP-361 seeks to implement a recovery mechanism for transactions from at-risk addresses, likely delaying full activation until additional parameters are established.
Coinbase Joins Quantum Preparedness Efforts
In January, Coinbase initiated its own independent advisory board focused on quantum issues related to blockchain technology, which has already published its initial findings. Their analysis suggests that while there isn't an immediate threat, early preparations are critical due to the lengthy nature of potential updates in infrastructure and protocols.
The board identified that up to 7 million BTC could potentially be at risk from quantum advancements and highlighted the challenges of implementing effective post-quantum defenses for Bitcoin. Other organizations, like the Stellar Development Foundation, are also developing centralized strategies to tackle these risks as awareness of quantum vulnerabilities increases in the blockchain sector.
