Bitcoin risks losing its status as the leading cryptocurrency if its governance mechanisms fail to adapt swiftly to quantum threats. This warning was issued by Charles Hoskynson, the founder of Cardano, during an episode of The Starting Block show.
"The problem with Bitcoin is that it is stuck in time," Hoskynson stated.
According to Hoskynson, modifying the Bitcoin blockchain is fraught with significant challenges. This rigidity once motivated him to participate in the creation of Ethereum, where he is now recognized as a co-founder alongside Vitalik Buterin.
Currently, this same conservatism may work against Bitcoin, valued at $1.3 trillion, as the quantum threat is not merely theoretical but a tangible risk, Hoskynson emphasized. Bitcoin can only endure if its governance facilitates meaningful progress. However, any unsuccessful hard fork that undermines the asset's value could lead to its loss of market supremacy.
"Bitcoin has withstood serious threats — even the departure of Satoshi [Nakamoto] did not break it. But quantum computers could be the threshold it cannot cross. If the community cannot advance without compromising fundamental principles, I do not believe Bitcoin will remain number one," Hoskynson remarked.
Emphasis on On-Chain Voting
Hoskynson referred to Cardano as the "spiritual successor" to Bitcoin, aiming to develop ideas that Nakamoto either could not or did not implement.
He highlighted formal on-chain governance as a key advantage. In the event of a threat related to vulnerable cryptography, ADA holders will be able to vote on necessary changes, which would then trigger an automatic migration.
The blockchain is currently preparing for its most significant upgrade to date, known as Ouroboros Leios. Hoskynson predicted a sixtyfold increase in throughput. The testnet, Musashi Dojo, went live on June 23, with the mainnet release scheduled for late 2026.
Countermeasures
The Bitcoin community has already begun preparations for the quantum threat. On July 23, nine companies, including BlackRock, Coinbase, Fidelity Digital Assets, and Strategy, launched a security consortium for the first cryptocurrency, with a budget of $15 million.
The funds will be allocated to support independent developers and researchers, as well as to educate the community about the blockchain's security status. The consortium noted that computers capable of breaking Bitcoin's cryptography are not expected to emerge for several years.
Similar initiatives are being established in other networks. Earlier this year, the Ethereum Foundation formed a post-quantum security team.
It is worth recalling that in December, Hoskynson stated that implementing defenses against quantum attacks could slow blockchains down by a factor of ten.