Matt Corallo: Most crypto wallets are quantum safe, a soft fork of Bitcoin would require proof of ownership of seed coins, and the Ethereum Foundation is leading the way in responding to the quantum threat.

Important takeaways

• Most crypto wallets use quantum-safe detection schemes for seed coins, which improve security against quantum threats.
• A soft fork may be implemented in Bitcoin to require proof of ownership of seed names, to deal with potential quantum threats.
• Identifying the right Bitcoin developers is a challenge because of the noise from low-impact contributors.
• Organizations like Chaincode Labs and Blockstream Research are instrumental in developing Bitcoin’s post-quantum security.
• The Bitcoin community may adapt to post-quantum challenges sooner than expected.
• There is consensus among Bitcoin developers on ways to deal with quantum threats.
• Preparing Bitcoin for the post-quantum world may be easier than expected, despite the high data requirements.
• Current post-quantum cryptographic schemes are in the early stages and may not be reliable yet.
• Quantum computing poses a major risk to all cryptographic protocols, including Bitcoin.
• The Ethereum Foundation takes a more proactive approach to quantum threats compared to Bitcoin.
• Bitcoin may take seven years to progress to a post-quantum state, but effective steps are being taken now.
• Public perception of quantum threats may be more of a threat to Bitcoin than the actual threat of the technology in the short term.

Guest introduction

Matt Corallo is a Bitcoin Core contributor at Chaincode Labs. He is the founder of Blockstream and the creator and maintainer of the Fast Internet Bitcoin Relay Engine (FIBRE).

Quantum secure steps in crypto wallets

• “Most crypto wallets use quantum safe derivation schemes” – Matt Corallo
• Seed phrases in wallets improve security against quantum threats.
• A soft fork would require proof of ownership of seed names to combat quantum threats.
• “We can do a soft fork on Bitcoin and we need proof of seed name” – Matt Corallo
• Understanding wallet security mechanisms is critical to future proofing against quantum computing.
• Quantum security measures are already integrated in many crypto wallets.
• The implications of quantum computing for wallet security are significant.
• Adapting to quantum threats does not require extensive wallet development.

Identifying suitable Bitcoin developers

• “It can be difficult to tell who is important in the development of Bitcoin” – Matt Corallo
• Noise from low-impact contributors makes it difficult to identify key developers.
• Organizations like Chaincode Labs focus on post-quantum security.
• “Chaincode Labs has spent time mapping Bitcoin’s post-quantum future” – Matt Corallo
• Understanding the power of the Bitcoin development community is important.
• The distinction between influential and non-influential donors is important.
• Connecting with the right developers is important for stakeholders.
• The Bitcoin community is preparing for post-quantum challenges.

Consistency and the road map of post-quantum Bitcoin

• It builds consensus among developers about dealing with quantum threats.
• “There is consensus about methods” – Matt Corallo
• Preparing Bitcoin for the post-quantum world may be easier than expected.
• High data requirements are a consideration in preparing for quantum threats.
• “Bitcoin core developers are conservative about data requirements” – Matt Corallo
• The road map for dealing with quantum threats is gaining consensus.
• The feasibility of Bitcoin replacement technology is promising.
• Engineers are actively working on post-quantum security measures.

Challenges and opportunities in post-quantum cryptography

• Current post-quantum cryptographic schemes are in the early stages.
• “Post-quantum schemes are still very young” – Matt Corallo
• Hash-based signatures allow for gradual changes without instant trust.
• “You can start using binding addresses for quantum hash-based signatures” – Matt Corallo
• Incorporating new cryptographic methods is a strategic approach.
• The reliability of current post-quantum systems is tested.
• A gradual transition to post-quantum cryptography is possible.
• Bitcoin security measures are evolving to deal with future threats.

Quantum computing’s impact on cryptographic protocols

• Quantum computing poses a major threat to cryptographic protocols.
• “A quantum computer could keep programs private, leaving owners vulnerable.” – Matt Corallo
• Ethereum is more effective in dealing with quantum threats than Bitcoin.
• “The Ethereum Foundation has a team dedicated to working on this” – Matt Corallo
• The threat of quantum computing needs immediate attention.
• The different strategies between Ethereum and Bitcoin highlight different approaches.
• Quantum threats are a major threat to the blockchain environment.
• Effective measures are essential to reduce quantum risk.

It switches to post-quantum public keys

• The transition to post-quantum public keys involves public consensus.
• “You have to flip that switch, it’s public” – Matt Corallo
• Cryptocurrencies face the same challenges as other cryptographic systems.
• “There is not much that is different about any crypto in this decision” – Matt Corallo
• Community consensus is important for accepting old public keys.
• The decision-making process involves complex considerations.
• The industry-wide issue of quantum security affects all cryptographic systems.
• The transition to post-quantum security is a shared challenge across industries.

Market dynamics and Bitcoin forks

• The market will prefer forks that disable unsafe spending methods.
• “The market will choose a fork with unsecured spending options closed.” – Matt Corallo
• Market forces determine the value and fate of crypto.
• “It’s the market, not the consensus among all the stakeholders” – Matt Corallo
• The role of market dynamics is important in crypto forks.
• Engineers prioritize principles such as resistance to censorship.
• “Contributors focus on principles instead of specific areas” – Matt Corallo
• The development of Bitcoin is guided by fundamental principles.

Infidelity and quantum threats

• The dishonesty is very much focused on the developers of Bitcoin.
• “Dishonesty is the right answer to the evolution of Bitcoin” – Matt Corallo
• Quantum Computing Threatens Bitcoin’s Unreliability.
• “Quantum computer hacking coins affect trust in the system” – Matt Corallo
• User confidence is tied to system distrust.
• Developers prioritize user privacy and security.
• Continued security considerations are necessary for Bitcoin.
• Quantum threats challenge the core principles of Bitcoin.

Bitcoin competition for money

• Bitcoin is facing competition from new investment classes like AI.
• “Bitcoin competes for big money with AI, a new investment category” – Matt Corallo
• Short-term price movements are not a priority for developers.
• “Engineers focus on the principles, not the short term price” – Matt Corallo
• Market forces can favor forks with less supply.
• “Forks with less supply may win out in market dynamics” – Matt Corallo
• The change in the investment climate affects the performance of Bitcoin.
• Developer priorities vary with market price fluctuations.

Cryptographic risks and mitigation strategies

• Traditional math efficiency can threaten cryptography.
• “There is a risk of traditional success leading to cryptographic problems” – Matt Corallo
• Requiring multiple signature schemes can reduce risk.
• “You need two different signature schemes to ensure security” – Matt Corallo
• Cryptographic vulnerabilities emerge gradually over time.
• “Cryptographic primitives are not broken overnight” – Matt Corallo
• Effective measures are needed to deal with cryptographic risks.
• The blockchain community is considering technical solutions to complex problems.