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BlackRock, the world’s largest asset manager, has issued a warning regarding the potential threat of quantum computing to Bitcoin (BTC) and other digital assets.
In a recent update to its iShares Bitcoin Trust ETF (IBIT) prospectus, BlackRock explicitly included quantum computing as a risk factor, stating that it could render Bitcoin’s source code “flawed or ineffective. It means, if quantum technology advances sufficiently, it could compromise the cryptographic algorithms that not only secure digital assets but also the global IT infrastructure.
Bitcoin’s security relies heavily on two major cryptographic systems: SHA-256 for hashing (used in mining and verifying transactions) and Elliptic Curve Digital Signature Algorithm (ECDSA) for digital signatures (securing private keys and authorizing transactions).
A powerful quantum algorithm known as Shor’s algorithm could theoretically break the ECDSA, allowing a quantum computer to derive a private key from a public key. If a malicious actor could rapidly compute a private key from a public address, they could hijack pending transactions and steal funds.
BlackRock’s decision to include quantum computing in its ETF filing, despite managing over $11.6 trillion in assets, underscores the growing seriousness of this long-term threat. Approximately 5.9 million BTC are estimated to be held in older or reused wallet formats that could be more vulnerable to quantum attacks if advancements happen faster than anticipated.
While changing Bitcoin’s core protocol is complex, proposals like the Quantum-Resistant Address Migration Protocol (QRAMP) are being discussed. Hybrid approaches, combining classical and quantum-resistant cryptography, are also being explored.
While the quantum threat to Bitcoin is not immediate, it is a serious long-term consideration that the industry is actively addressing through research and development.
