All research
Equities & sectorsARK Invest

Bitcoin’s Post-Quantum Solutions

Quantum computingCrypto & digital assets

Our summary

Bitcoin’s quantum risk is serious but manageable if holders and developers migrate exposed coins and adopt adaptable post-quantum signatures before cryptographically relevant quantum computers arrive.

  • Google Quantum AI and Oratomic/Caltech research has moved estimates for breaking Bitcoin’s 256-bit elliptic-curve cryptography from decades away to potentially within a decade, while approximately 35% of BTC supply is exposed through public keys and roughly two-thirds of ETH and all SOL face comparable exposure.
  • Shor’s algorithm could derive private keys from public keys, whereas Grover’s algorithm would only reduce SHA-256’s effective security from 256 to 128 bits; the immediate distinction is between short-range attacks racing Bitcoin’s roughly 10-minute block interval and long-range attacks targeting already exposed coins over weeks or months.
  • Long-range attacks are likely to become feasible first because they may run on fault-tolerant platforms such as neutral atoms, while short-range attacks require much faster superconducting or photonic systems; the article therefore emphasizes address migration and advance protocol coordination.
  • BIP-360, merged into the BIP repository in February 2026, proposes Pay-to-Merkle-Root outputs that remove the quantum-vulnerable Taproot key path, but it does not choose a post-quantum signature or protect ordinary elliptic-curve spends from short-exposure attacks.
  • Hash-based signatures offer the most conservative security trade-off but can reach 8,000–50,000 bytes, while lattice-based alternatives such as ML-DSA range from about 2.4–4.6 kilobytes and Falcon-512 is about 666 bytes; hybrids, modular designs and commit-delay-reveal schemes add protection at the cost of size, complexity or incomplete coverage.
  • Around 1.6–1.8 million BTC is held by exchanges and custodians with exposed balances, including approximately 83–85% of Binance’s balance and 100% of Robinhood’s, while an estimated 8–12% of total supply may remain permanently exposed because it is lost.

Takeaway: Bitcoin should begin transitioning toward hidden-key addresses, flexible post-quantum infrastructure and a consensus decision on vulnerable or lost coins well before Q-Day, although no current solution fully resolves signature size, governance, migration and permanently inaccessible supply.

Published by ARK Invest. Summary by HF Best Ideas.

More from ARK Invest

Latest research

Share this summary