[DigitalToday reporter Jinju Hong (홍진주)] BlackRock has said the quantum computing threat to cryptocurrency networks such as bitcoin is technically manageable.

On July 23, Bitcoin Magazine reported that BlackRock said in a new report titled "Quantum Computing and Blockchain" that switching existing cryptography to quantum-resistant standards is an easier task than building a quantum computer capable of breaking it.

BlackRock said execution matters more than the technology itself. The report said a post-quantum transition for cryptocurrencies is solvable from a technical standpoint, and that the main challenge lies in coordinating and implementing it in time. Because networks such as bitcoin run on a decentralised consensus structure that is hard to change centrally in one go, agreement on the need for upgrades and the pace of adoption could determine security levels.

Concerns that quantum computers could neutralise bitcoin encryption have been raised repeatedly in the crypto industry. Some bitcoin developers are already testing quantum-resistant signature methods on live-transaction sidechains. BlackRock said, however, that existing quantum computers have many errors and that there is still no equipment capable of actually breaking bitcoin encryption.

BlackRock also pointed to vulnerable points in bitcoin’s current structure. It said about 35 percent of bitcoin in circulation has exposed public keys, leaving it potentially vulnerable to certain types of attacks. It estimated that 11 to 19 percent of total supply could be permanently lost coins even if a transition takes place. That shows that not all coins would be protected equally even after moving to a quantum-resistant system.

BlackRock also announced the launch of a bitcoin security consortium with Coinbase, Fidelity Digital Assets and Block. The consortium will focus on funding open-source engineers who support proposals such as BIP-360. BlackRock called BIP-360 a trustworthy, well-designed proposal as one piece of a bigger puzzle, but said it did not see it alone as completing the solution.

BlackRock’s stance also aligns with its interests as an asset manager. BlackRock launched spot bitcoin and ether ETFs in 2024, and the bitcoin ETF has been cited as one of the most successful launches in the ETF industry’s history. BlackRock CEO Larry Fink has called bitcoin digital gold and an international asset, and has said crypto networks can support tokenisation of various assets.

The report’s conclusion is that the balance currently favours defenders. BlackRock said upgrading existing cryptography, including bitcoin and ether, to quantum-security standards is far less burdensome than building a new quantum computer capable of breaking encryption at today’s level of quantum computing development. It added that defenders clearly remain in the lead at this point.

BlackRock said the key point to watch is the speed of readiness for network upgrades, rather than the timing of any real threat. It did not see a lack of solutions, but said a transition does not happen in a decentralised network such as bitcoin based on technical feasibility alone. As a result, the quantum threat debate is shifting from a race in computing power to a question of how quickly networks can build consensus and carry out security transitions.