- Sygnum says quantum readiness is becoming a mainstream priority in crypto.
- There’s growing collaboration among traditional finance and digital asset institutions to safeguard Bitcoin amid the looming threat of quantum computers.
- On the other hand, a crypto and computer security expert argued that the controversial BIP-110 is a counterintuitive measure that will only get in the way amid efforts to ensure Bitcoin’s quantum readiness.
Quantum computers don’t currently pose a viable threat to traditional financial institutions, let alone crypto. However, experts warn that we are already at the “harvest now, decrypt later.” It means bad actors are now capturing massive volumes of data available online and onchain, leaving them ripe for the taking once quantum computing reaches the capability to crack them.
Sygnum Bank, the world’s first digital asset bank, recognizes that the danger is becoming more imminent and is leaving nothing to chance. Its approach to contributing to an industry-wide quantum readiness involves proactive architectural awareness and long-term crypto-custody planning.
Crypto Prioritizing Quantum Readiness
Recently, Sygnum reiterated the findings it published about the subject in a report last December. It stated there that “a genuine quantum threat remains negligible for the time being,” especially for crypto. Nonetheless, the digital asset institution recommended vigilance as the technology is making significant progress over time.
Meanwhile, Sygnum highlighted that quantum readiness is becoming a mainstream priority in crypto. The latest efforts of Coinbase, alongside other members of the Bitcoin Security Consortium, underscore this fact.
The consortium includes major players in traditional finance and the crypto sector, including BlackRock, Fidelity Digital Assets, Block, Blockstream, and Strategy. Together they have committed to pool $15 million to support open-source developers and researchers working on the Bitcoin (BTC) network’s long-term security over the next three years. They’re exploring ways to prepare it for a seamless post-quantum cryptography (PQC) migration.
The digital asset bank expects financial institutions to be the first adopters of quantum-resistant solutions. After all, they maintain the largest pools of capital. It expects them to set the standards that blockchain protocols will build on.
In addition, Sygnum emphasized that a group of major issuers, exchanges, and treasuries has begun organizing to work on post-quantum-ready systems.
Post-Quantum Migration Efforts Expose the Irony in BIP-110
Speaking of Bitcoin, one of the most hotly debated topics in its ecosystem focuses on the controversial BIP (Bitcoin Improvement Proposal) 110. The one-year consensus soft fork aims to limit arbitrary data storage in Bitcoin. It aims to prevent spam in its network and preserve BTC’s monetary purity.
Many prominent figures argued against the move, including Blockstream CEO Adam Back and Strategy Executive Chair Michael Saylor. Critics believe it’s a downgrade and it restricts Bitcoin’s use cases.
In the context of the ongoing post-quantum efforts in Bitcoin, computer security and crypto researcher Sergio Demian Lerner found BIP 110 quite ironic. He pointed out that if Bitcoin strictly curtails transactions with large payload sizes to eliminate “arbitrary data,” it risks inadvertently blocking or severely constraining the massive public keys and signatures required for post-quantum transaction proofs.
Hence, attempts to stop spam by restricting OP_RETURN or similar functions are counterintuitive relative to ensuring Bitcoin’s quantum readiness.
