Key facts
- Nine major finance and crypto firms have formed the Bitcoin Security Consortium.
- The consortium has pledged $15 million over three years to fund Bitcoin security research.
- The research will focus on defending Bitcoin's cryptography against quantum computing threats.
- Key members include BlackRock, Coinbase, Fidelity, and ARK Invest.
- The initiative aims to address the long-term security risks posed by potential future quantum computers.
Nine of the largest names in finance and cryptocurrency have joined forces to establish the Bitcoin Security Consortium, committing a combined $15 million over three years to bolster Bitcoin's long-term security against potential quantum computing threats.
The consortium, which includes BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets, and Galaxy, will fund research and open-source development focused on quantum defense. While quantum computers capable of breaking Bitcoin's current cryptography do not yet exist, an estimated 6.9 million BTC, valued at $450 billion, are held in addresses that would be vulnerable if such technology emerges.
Members will directly fund selected developers and researchers, with Mike Schmidt of the nonprofit Brink coordinating the effort on a volunteer basis. Robert Mitchnick, BlackRock's head of digital assets, emphasized the critical work of core developers in ensuring Bitcoin's future security. The initiative aims to address the significant overhang of quantum risk for investors and firms with substantial exposure to the cryptocurrency.
Work is already underway on potential solutions, including proposals like BIP 360, which aims to limit public key exposure, and the development of post-quantum signature schemes. This proactive funding is seen as essential insurance for firms that have billions in client and shareholder assets tied to Bitcoin, ensuring its long-term viability.