Nine of the biggest institutional names in Bitcoin went public today with a joint initiative to fund the network's long-term security—including defenses against quantum computers—backed by a combined $15 million in member pledges over the next three years.
The $15 million is not a pooled fund. Each member directs its own money to whatever developers, researchers, or organizations it chooses. The consortium also makes clear it will not push for any specific changes to Bitcoin's code or speak on behalf of its decentralized developer community.
What quantum computing has to do with BitcoinBitcoin currently relies on elliptic curve cryptography—a form of math-based encryption that proves a wallet's owner authorized a transaction—to secure every payment on the network. The problem is that a sufficiently powerful quantum computer (a machine that uses quantum physics to perform certain calculations millions of times faster than a conventional computer) could theoretically reverse-engineer a wallet's private key from its public key, exposing funds.
Don’t panic, though. That day isn’t close yet, but it is getting closer and a lot of companies are focusing on providing quantum-proof services in crypto, cloud storage, messaging, and any application that relies on traditional cryptography.
Bitcoin development moves slowly by design, and any upgrade to quantum-resistant signatures could take years to research, agree on, and deploy across the entire ecosystem of wallets, exchanges, and hardware devices.
"As long-term holders, we have every incentive to see Bitcoin remain secure for generations. Funding the people who do this work, and helping inform the conversation around it, is a natural way for us to contribute," said Phong Le, CEO of Strategy—the company that holds more Bitcoin than any other publicly traded firm.
BlackRock, whose iShares Bitcoin Trust ETF holds billions in assets, framed the initiative as filling a funding gap for the developers already doing the work. "Bitcoin Core developers do incredibly important work, and we’re pleased that our firm and the others in this group will now be making significant additional funding available to support Bitcoin’s long-term security needs," said Robert Mitchnick, the firm's global head of digital assets.
Galaxy's moves"There's a gap between the quantum computing world, which is moving fast, and the Bitcoin development world, which is just beginning to engage with post-quantum cryptography in earnest," Alex Thorn, head of research at Galaxy wrote in a statement shared by the company. "Galaxy's role is to bridge that gap through research that makes the threat legible to investors and policymakers, as well as grants that fund the developers doing the hardest technical work."
Whether Galaxy's $5 million is included in the consortium's $15 million aggregate has not been clarified—a detail worth watching as each member begins directing its share.
Mike Novogratz, Galaxy's CEO and founder, described the initiative as a matter of institutional responsibility. "As leaders in the digital assets space, we believe it's important that we help be part of the solution to any potential threat quantum computing poses to Bitcoin," he said. "This initiative reflects that commitment, creating practical steps to research, fund and support the work that keeps Bitcoin secure for the long run."
The consortium said it plans to publish and maintain updated material on Bitcoin's security in the coming months.
