When quantum computing will truly threaten Bitcoin remains uncertain, but the industry has already begun preparing in advance. Galaxy Digital's new initiative focuses on development funding, research releases, and academic collaboration, aiming to drive community action before the risks become a reality.
Maximum funding of $5 million
The company disclosed that this Bitcoin quantum security readiness program will provide up to $5 million in developer grants to support the development of post-quantum cryptography schemes. Galaxy Research will also continue to publish related research and has established a new quantum advisory committee.
The initial advisory team comprises members from research projects at the University of Calgary, MIT, and Boston University. Galaxy stated that applications for developer grants will open immediately.
Old addresses face higher risks
This plan targets what the industry calls "Q-Day." Once quantum computers are powerful enough, attackers could potentially use Shor's algorithm to break the elliptic curve cryptography currently used by Bitcoin.
In this scenario, wallets with exposed public keys are more vulnerable. Attackers could theoretically deduce the private key, forge signatures, and transfer assets. The article also mentions that old addresses and reused addresses pose a higher risk.
Current solutions under discussion include migrating funds to quantum-resistant addresses and introducing new signature schemes through proposals such as BIP-360 and BIP-361. However, due to the decentralized nature of Bitcoin governance, these upgrades could take several years.
Industry warnings are rising.
Galaxy's move aligns with recent industry assessments. Quantum security company Project Eleven stated in May that quantum computers capable of practically breaking cryptography will most likely emerge before 2033, possibly as early as 2030, and estimated that approximately 6.9 million Bitcoins are in quantum-exposed addresses.
In June, Coinbase's Quantum Advisory Committee also urged developers to begin migration work as soon as possible, estimating a potential vulnerable supply of approximately 7 million BTC. That same month, Trump signed two executive orders to advance the development of quantum technology in the United States and brought forward the federal post-quantum cryptography migration deadline to December 2031.
Additional information:On July 16, Project Eleven proposed a new method that attempts to allow users to prove wallet ownership after Q-Day by verifying parent key control, without relying entirely on the original signature. Galaxy has not yet announced a specific timeline for the protocol upgrade.
