Cardano founder: Quantum threatens or subverts Bitcoin

Cardano co-founder Charles Hoskinson warned that if Bitcoin's governance system fails to organize its response to quantum computing, it may lose its status as the largest cryptocurrency.

Summary

Hoskinson said that if governance fails to successfully coordinate timely quantum security upgrades, Bitcoin may lose its lead.

Bitcoin developers are already discussing post-quantum migration solutions, including BIP361 and new signature designs.

Cardano's on-chain governance allows ADA holders to vote on upgrades, but coordination disputes have also emerged.

He made these remarks in an interview with "The Starting Block" released on July 24.

Hoskinson described Bitcoin as "frozen in time" because major changes require broad consensus among developers, miners, node operators and users. He believes that Cardano's formal voting system provides his community with a clearer path to upgrade approval. His remarks presented governance arguments rather than evidence that a quantum attack was imminent.

Hoskinson views quantum security as a governance test

Bitcoin relies on elliptic curve cryptography to prove ownership of funds. In theory, a sufficiently powerful quantum computer could derive private keys from exposed public keys and authorize transactions without the owner's consent. The National Institute of Standards and Technology describes this as a future risk and has standardized algorithms designed to resist quantum attacks.

Hoskinson said quantum computing will test whether Bitcoin can transform without weakening its value-supporting characteristics. He said that if Bitcoin cannot make progress in governance, it may not be able to maintain its leading position in cryptocurrencies. But he did not name other networks that would replace it, nor did he give a time when the threat would occur.

Bitcoin developers are already studying migration options

Bitcoin does not have an official on-chain voting institution. Developers can propose code, but users and node operators decide whether to run it. Miners, exchanges and wallet providers can also influence whether upgrades receive sufficient support. This slower process avoids frequent rule changes, but can make emergency coordination more difficult.

Anti-quantum research is already underway. Bitcoin Optech has tracked BIP 361, and the proposal outlines plans to gradually migrate from current ECDSA and Schnorr signatures after developers select post-quantum systems. Other proposals cover new address formats, mixed signatures and recovery paths. These ideas are still under review.

Any such changes would also require wallets, exchanges, custodians and long-dormant holders to move funds, while avoiding ownership rules that could disrupt or conflict in the network during a limited transition period.

Some researchers estimate that millions of bitcoins are located in addresses visible on public keys. If capable quantum computers emerge, these coins may face greater risks. The timing remains uncertain, and researchers continue to debate which coins should be moved, frozen or kept expendable.

Cardano points to formal on-chain governance

Cardano completed the transition to full community governance through the Plomin hard fork in January 2025. ADA holders can vote directly or delegate voting rights to representatives called DReps. Equity pool operators and a constitutional committee also participate in specific decisions. The system can approve hard forks and treasury withdrawals on-chain.

Hoskinson said Cardano could use the structure to vote on migrating infrastructure that is vulnerable to quantum attacks. However, Cardano has not yet completed such relocation. Its governance system still needs to evaluate technical designs, approve funding, and organize users, developers and service providers around any changes.

This process has also generated controversy. In 2026, Cardano's representatives vetoed or questioned multiple proposals related to Hoskinson and Input Output. One of the requests includes research on Leios expansion and resistance to quantum cryptography. A formal vote does not guarantee approval of a plan supported by the founder.

Cardano prepares for expansion while studying security

Hoskinson also said Cardano is preparing for its biggest upgrade and claimed the network will become "60 times faster." Development updates show that the team is testing Ouroboros Leios, a design designed to increase throughput by separating block roles and allowing more parallel work. Developers continue to integrate prototypes with Cardano Node software.

The 60-fold figure is still Hoskinson's estimate, not actual measurements from the main network. Leios still requires testing, technical review and governance approval. Cardano's recent Van Rossem hard fork showed that DReps, rights pool operators and the Constitutional Council can coordinate upgrades.

Hoskinson described Cardano as a "spiritual successor" to Bitcoin because it maintains a fixed-supply currency model while adding smart contracts and formal governance. Bitcoin supporters may reject such comparisons because Bitcoin's limited change process is part of its security model. Bitcoin relies on broad off-chain consensus, while Cardano records many decisions directly on the chain.

Quantum problems remain open to both networks. Bitcoin developers are designing migration plans, and Cardano is funding research and building governance tools. Neither network has yet deployed a complete post-quantum transaction system. The real test will come when developers agree on secure encryption and the community must decide how to migrate users and funds.