Coinbase's advisory board released a report stating that the threat of quantum computing is looming, and the crypto industry needs to develop countermeasures as soon as possible.

A 50-page report commissioned by Coinbase argues that while current quantum computers are insufficient to break the encryption technologies of networks like Bitcoin and Ethereum, fault-tolerant large-scale quantum computers will eventually be built, and the crypto industry must begin preparing now. The report, authored by an independent advisory committee including cryptographers and academics such as Dan Boneh of Stanford University, Justin Drake of the Ethereum Foundation, and Sreeram Kannan of Eigen Labs, states that the estimated timeframe for quantum computers to break current encryption standards ranges from several years to over a decade. The National Institute of Standards and Technology (NIST) recommends migrating to quantum-resistant cryptography by 2035, a timeline the report considers potentially optimistic. Quantum-resistant cryptography already exists and is being standardized, but post-quantum digital signatures can be tens to hundreds of times larger than existing signatures, potentially increasing block size by 38 times and posing challenges such as wallet migration. The Ethereum Foundation has proposed quantum-resistant digital signature schemes, and companies like Solana are experimenting with quantum-resistant wallet designs. The report recommends flexible transition strategies, such as hybrid systems, to avoid sacrificing current security while preparing for future upgrades.