The digital asset ecosystem faces technical debates surrounding advances in quantum computing and the risks of Bitcoin. In this sense, investment firm Franklin Templeton points out that what is generally considered an existential threat may actually be an opportunity for improvement for the industry.
In a recent report titled “Digital asset security in the quantum era” (Security of Digital Assets in the Quantum Era), the company analyzes the impact of this technology on cryptocurrency networks.
The conclusion is clear. Far from representing the end of current cryptography, the quantum challenge is: catalyst of strategic modernization of global infrastructure.
The report identifies vulnerabilities in the digital signature algorithm rather than in the structure of the blockchain itself. at the moment, Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA).
A quantum computer with plenty of power. Scholl’s algorithmwe can perform the inverse calculation to derive the private key from the public key shown. This targets addresses that have already revealed their public keys on the network. things that are reused or Menpur.
As previously reported in this medium, approximately one-third of all BTC in circulation could be exposed to quantum risk in this scenario. we talk about almost 6.8 million bitcoins Hosted in an old or published address format.
Lessons from history: SegWit and Taproot
The report notes that protocols need to be updated to achieve post-quantum protection (PQC). It is difficult to define when “Q Day” occurs, but we can use past Bitcoin updates as an example to estimate response times.
Franklin Templeton highlights the following improvements: Segwit (2017) y Taproot (2021) It took three to four years from initial proposal to final implementation. This pace is often criticized as slow, but for the company it guarantees consensus. Quantum transitions cause networks to perform similar processes such as:
- Software updates: Introducing a new signature scheme that is resistant to quantum attacks.
- Key rotation: Users must actively migrate their funds to the new secure address format.
- Consensus governance: A process of technical discussions to ensure that the transition does not compromise decentralization.
“Cryptographic agility” as an organizational standard
For Franklin Templeton, quantum threats act as quality filters. An infrastructure that demonstrates that certificates and keys can be rotated without interruption, so-called crypto agility— We will probably get institutional capital in the future.
The report suggests that regulators and standards bodies take steps to: Requiring quantum readiness as a standard for due diligence. This means that administrators and developers no longer only have to deal with security against traditional attacks, but also maintain an infrastructure that is ready to implement post-quantum cryptography.
In conclusion, the quantum age will not wipe Bitcoin off the map, according to the report. On the contrary, the networks that lead this technology transition will transform system vulnerabilities into competitive advantages and strengthen their position as pillars of a modern, truly resilient financial system.
(Tag translation) Bitcoin (BTC)
