BlackRock, Coinbase and Strategy commit $15 million to anti-quantum bitcoin

Nine major Bitcoin institutions jointly launched a security alliance, promising US$15 million to defend against quantum threats.

Today, nine of the most influential institutions in the Bitcoin field jointly announced that they will jointly fund long-term security of the Bitcoin network-including resisting attacks from quantum computers. Over the next three years, members have pledged a total of US$15 million.

The alliance is called the "Bitcoin Security Alliance" and its members include BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets and Galaxy. Day-to-day coordination is handled as a volunteer by Mike Schmidt, executive director of Brink, a non-profit organization that funds Bitcoin open source developers.

This US$15 million is not a centrally managed fund, but is at the discretion of each member to invest the funds in the developer, research institution or organization of its choice. The alliance also made it clear that it will not promote any specific changes to the Bitcoin code and will not speak on behalf of the decentralized developer community.

Quantum computing threats are looming

Currently, the Bitcoin network relies on elliptic curve cryptography to secure every transaction-a mathematically based encryption method used to prove that the wallet owner has authorized the transaction. However, a quantum computer that is powerful enough (using the principles of quantum physics to operate millions of times faster than traditional computers) can theoretically deduce the private key of a wallet back from the public key, thereby stealing funds.

But don't panic. This day has not yet arrived, but it is approaching. Many companies are committed to providing anti-quantum security services in applications such as cryptocurrency, cloud storage, and instant messaging that rely on traditional cryptography.

Post-quantum cryptography-a new mathematical method that remains secure even in the face of quantum computers-is at the heart of the technology funded by the alliance's plan. ARK Invest estimated earlier this year that approximately 35% of the total supply of Bitcoin is already stored at addresses that could be subject to future quantum attacks. Researchers at Project Eleven predict that the "Q-Day" when quantum computers can truly crack Bitcoin cryptography may arrive as early as 2029.

Bitcoin development is slow and upgrades take years

Bitcoin development and design itself is quite slow. Any upgrade to a quantum-signature-resistant scheme will take years of research, consensus, and deployment into wallets, exchanges, and hardware devices across the ecosystem.

"As long-term holders, we have every reason to ensure that Bitcoin remains safe for generations. Funding those who do this work and helping guide discussions is a natural way for us to contribute." Strategy CEO Phong Le said. The company holds more bitcoins than any other publicly traded company.

BlackRock's iShares Bitcoin Trust ETF holds billions of dollars in assets and sees the initiative as a move to fill the developer funding gap. "Bitcoin core developers are doing extremely important work, and we are pleased that our company and other members of the alliance will provide significant additional funding to support Bitcoin's long-term security needs." said Robert Mitchnick, global head of digital assets at BlackRock.

Galaxy launches quantum readiness plan ahead of schedule

As one of the nine founding members of the alliance, Galaxy took action two days ahead of schedule. On Monday, the company announced its own "Bitcoin Quantum Readiness Program," promising up to $5 million in funding to developers of post-event quantum solutions. At the same time, it also established a Quantum Advisory Committee composed of scholars from the University of Calgary and Boston University.

"The field of quantum computing is developing rapidly, and the field of Bitcoin development is only just beginning to get serious about post-quantum cryptography. There is a gap between the two." "Galaxy's role is to bridge this gap-through research to provide investors and policymakers with a clear understanding of threats, and through funding to support developers who do the most difficult technical jobs," Alex Thorn, director of research at Galaxy, wrote in a statement shared by the company.

It is unclear whether Galaxy's $5 million is included in the alliance's $15 million total-a detail that deserves attention as members begin allocating funds.

Galaxy CEO and founder Mike Novogratz views the initiative as an institutional responsibility. "As leaders in digital assets, we believe it is crucial to contribute to any potential threat that quantum computing may pose to Bitcoin." "This initiative embodies this commitment through practical steps to study, fund and support efforts to ensure the continued security of Bitcoin," he said.

The alliance said it plans to release and continue to update the latest information on Bitcoin security in the coming months.