Key Highlights
- Changpeng Zhao said quantum computing is not an existential threat to crypto, but upgrades to post-quantum security will be complex.
- He warned that adopting new cryptographic standards could lead to network splits, bugs, and coordination challenges.
- The transition may require users to move funds to updated wallets, with risks around dormant assets and incomplete upgrades.
Binance co-founder Changpeng Zhao (CZ) has weighed in on concerns that quantum computing could undermine cryptocurrency security, arguing that the risk is manageable—but not trivial to address.
In a detailed X post on Tuesday, his core view was that existing systems can transition to quantum-resistant cryptography. The issue, he suggested, was less about feasibility and more about execution.
He added, “It’s always easier to encrypt than decrypt. More computing power is always good. Crypto will stay, post quantum.”
Upgrading crypto won’t be simple
While post-quantum algorithms are already being developed, implementing them across decentralized networks presents structural challenges. Unlike traditional systems, blockchains require broad consensus to make protocol-level changes. That process can be slow and contentious, especially when multiple upgrade paths are proposed.
Zhao noted that disagreements over which cryptographic standards to adopt could lead to network splits, creating parallel versions of the same blockchain.
Risks during the transition
Even if upgrades move forward, the transition phase introduces its own risks. New code may bring unintended vulnerabilities, particularly in early implementations. At the same time, inactive or poorly maintained projects may fail to upgrade entirely, leaving parts of the ecosystem exposed.
For users who manage their own funds, the shift would likely require manual action, moving assets into wallets secured by updated cryptographic standards.
The question of dormant Bitcoin
One of the more complex issues raised involves early Bitcoin holdings, often associated with Satoshi Nakamoto. If quantum systems were ever able to break older cryptographic protections, dormant wallets could become targets.
Zhao suggested that the community may need to consider mechanisms to secure or restrict such addresses before that scenario emerges. Identifying which wallets should be affected, however, presents its own technical and governance challenges.
Google flags quantum threat to Bitcoin
CZ’s remarks came after researchers from Google’s Quantum AI division estimated that breaking encryption used by Bitcoin and Ethereum may require far fewer resources than previously thought.
Earlier assumptions placed the threshold in the millions of qubits. Updated estimates suggest fewer than 500,000 physical qubits could be sufficient, lowering the technical barrier.
The research also outlined a practical attack scenario: when a Bitcoin transaction is broadcast, its public key becomes briefly visible. A sufficiently fast quantum system could, in theory, derive the private key in that window and redirect funds.
Long-term view on crypto and computing
Despite these concerns, Zhao maintained that quantum computing does not pose an existential threat to crypto. He argued that stronger computing capabilities ultimately benefit cryptography, as security systems evolve alongside them. In that sense, quantum advancements are likely to trigger adaptation rather than collapse.
The broader takeaway: crypto systems may need to change, but the underlying model is expected to persist, even in a post-quantum environment.
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