“The right time to prepare for a cryptographic transition is before it becomes urgent,” a Coinbase Advisory Board spokesperson told Decrypt. “Our view is that customer assets are safe today, but the industry should not confuse ‘not imminent’ with ‘not important.’”
“Proof-of-stake chains have exposure in the signature schemes that validators use to secure the network,” the advisory board said. “That means the challenge for proof-of-stake isn’t just upgrading wallets; parts of the core consensus mechanism itself may need to be redesigned.”
The council also identified digital signatures used by crypto wallets as another major long-term vulnerability. These signatures prove ownership of cryptocurrency and authorize transactions. If broken, attackers could impersonate wallet owners and move their funds. Wallets where public keys are visible on-chain are considered the most exposed. The report estimates that about 6.9 million Bitcoin fall into that category.
The report says current cryptocurrency systems remain secure because quantum computers capable of breaking modern cryptographic signatures do not yet exist. Machines capable of doing so would need to be far more powerful than today’s quantum systems.
The report also raises the question of how networks should handle wallets that never upgrade. Lost keys, inactive accounts, and abandoned wallets mean some assets could remain exposed if quantum attacks become possible.
“A cryptographically relevant quantum computer would still require a major leap from today’s systems, but upgrading wallets, exchanges, custodians, and decentralized networks is a multi-year effort,” the advisory board said. “That’s why we wanted to publish now: to ground the conversation in science rather than hype, outline what is actually at risk, and help the industry start making practical migration decisions early.”
