Coinbase Says It Custodies About 5% of Bitcoin, Urges Immediate Quantum-Resistant Migration

Odaily News: Cryptocurrency exchange Coinbase stated that the Bitcoin it custodies accounts for approximately 5% of the total existing Bitcoin supply, and urged Bitcoin developers to immediately begin addressing the quantum computing threat. Coinbase pointed out that Bitcoin consensus changes and ecosystem migration could take years, and action cannot wait until quantum computers with the capability to break signature schemes emerge.

Coinbase recommends adopting a flexible "container" design similar to BIP-360 to enable the gradual replacement of quantum-resistant signature systems; it also proposed a phased "1-of-2" approach that would allow the same funds to be spent via either traditional keys or quantum-resistant keys during the transition period. The proposal would also need to be compatible with multi-party computation (MPC) key-splitting mechanisms.

Coinbase stated that dormant, lost, and Satoshi-era Bitcoin holdings constitute a separate governance issue, and that any rescue mechanism itself must also be quantum-resistant. In January of this year, Coinbase established a Quantum Advisory Board; in July, it joined the Bitcoin Security Alliance alongside BlackRock and Strategy, with a combined commitment of $15 million for Bitcoin's quantum-resistant overhaul. (Decrypt)