Coinbase flags Algorand, Aptos for quantum readiness

Coinbase’s Independent Advisory Board on Quantum Computing and Blockchain released a report on Tuesday that highlights Algorand and Aptos for their quantum-resistant work and warns that proof-of-stake networks such as Ethereum and Solana could face greater exposure to future quantum attacks.

The report explains how a sufficiently powerful quantum computer could break public-key cryptography used to secure digital assets and network operations. “A sufficiently powerful quantum computer could one day break the cryptography that secures digital assets across major blockchains,” the report states. The board adds it has “high confidence this type of machine will eventually be built,” while noting a threat capable of undermining blockchains does not yet exist and would require hardware far beyond current capabilities, likely at least a decade away.

On Algorand, the report highlights a staged roadmap toward full quantum readiness. At the transaction and execution layers, Algorand provides cryptographic tools to support quantum-resistant accounts without protocol changes. Earlier this month, Google’s research paper noted its live quantum security tools. The network executed its first quantum-resistant transaction on mainnet, the report notes, while cautioning that consensus functions such as block proposal and committee voting remain vulnerable and are under study.

Aptos receives praise for an account design that stores public keys as account metadata and does not derive addresses from a public-key hash. That structure allows users to sign a single transaction to update their authentication key to a post-quantum public key, securing assets without moving funds to a new account, the report says.

The board raised particular concern about proof-of-stake validator signature schemes, which it says could present greater risk from a quantum adversary. The paper records ongoing mitigations: Solana has developed a new signature scheme and offers a pathway for users to move tokens to addresses based on the upgraded scheme to reduce exposure. Ethereum has a defined roadmap that includes switching to quantum-resistant signatures in upcoming upgrades.

The report outlines practical responses for vulnerable tokens and wallets. Networks could instruct users to migrate assets to quantum-secure wallets. The board warns assets held in wallets that cannot be hardened against quantum attacks could become unrecoverable if keys are compromised, and some tokens tied to vulnerable key schemes might be lost if an exploit occurs before migration.

The paper also provides brief technical context: quantum computers use qubits and quantum effects to solve certain mathematical problems faster than classical machines. That speed could threaten algorithms for digital signatures and key exchange, which control wallets and validate transactions. The report notes blockchain projects and wallet developers are exploring post-quantum algorithms and upgrade paths to protect accounts and consensus mechanisms before such hardware arrives.