The strategy plans to introduce a Bitcoin security system to deal with quantum threats
The strategy plans to launch a Bitcoin security system aimed at addressing threats posed by quantum computing and other future security risks, Executive Chairman Michael Saylor said during the company’s earnings call on Thursday.
According to Saylor, the program will work with “the global cybersecurity community, the global crypto security community, and the global Bitcoin security committee” to help coordinate research and responses to those emerging risks.
“We think it’s reasonable and appropriate for us to do this, given our great responsibility as the manager of Bitcoin. But we want to do it in a very responsible way. And we want to make sure that we connect with the security community of cyber crypto and Bitcoin, because there are many, very smart minds here,” said Saylor. “There is a lot of good work being done. And it is possible that there will be an agreement and solutions will emerge at the right time in the right way.”
Vulnerability of Bitcoin’s elliptic curve digital signature algorithm (ECDSA), may be vulnerable to Shor’s Algorithm as a development of quantum computing.
Research estimates suggest that around 25% of the Bitcoin supply is currently at risk; these ‘vulnerable’ sites mainly include P2PK initial addresses and addresses that are reused where the public key has already been disclosed on the blockchain.
Speaking of concerns about quantum computing, Saylor dismissed it as the latest in a long history of “FUD” that Bitcoin has repeatedly overcome. He asserted that while such risks should be taken seriously, investors should not panic or rush into premature technological changes that may create new risks.
“We think it’s probably 10 years or more before there’s a threat. That’s a consensus. It’s a promising technology, but it’s still in its infancy,” Saylor said, adding that many communities around the world are working on anti-quantum protocols.
“If Bitcoin needs to be improved, there will be a global consensus. Currently, there is no global consensus that existing cryptographic libraries are vulnerable,” he noted. “You have to think very carefully about dealing with these risks. And you have to deal with them at the right time, not too soon, not too much. Because soon, you probably don’t have the right expertise, and you overinsure too late. You accept risks that you shouldn’t have.”
“Bitcoin will become stronger if and when that quantum development happens. And so Bitcoin can be developed. And Bitcoin can be developed to become stronger,” he emphasized.
Some analysts warn that quantum-powered computers may emerge between 2027 and 2030, and the crypto ecosystem has begun to respond to these concerns, including developer proposals such as BIP 360 designed to use quantum-resistant features in Bitcoin.
The perceived risks have caused some investors to take defensive positions. Jefferies analyst Christopher Wood has removed Bitcoin from his portfolio, citing quantum threats.
