BlackRock, the largest asset management firm globally, has contributed to the ongoing dialogue regarding the intersection of cryptocurrency and quantum computing, expressing a notably optimistic perspective.

In its recent report titled Quantum Computing and Blockchains, which addresses the potential ramifications of quantum advancements, BlackRock asserts that transitioning existing cryptographic measures to quantum-resistant standards poses significantly fewer challenges than developing a functional quantum computer capable of compromising such cryptography.

The report states, “In our view, post-quantum migration for cryptocurrencies is eminently addressable from a technical standpoint, and the key challenge lies in timely coordination and implementation.”

Within the cryptocurrency community, concerns have been raised about the prospective capabilities of quantum computers to undermine Bitcoin’s cryptography. Some developers are proactively preparing for a post-quantum landscape by experimenting with quantum-resistant signatures on active sidechains.

While quantum computers do exist, they currently possess high error rates, and no machine has yet been developed that can effectively breach Bitcoin’s cryptographic measures. At present, Bitcoin constitutes the largest computer network in operation.

BlackRock has a vested interest in this sector, having introduced spot Bitcoin and Ethereum exchange-traded funds in 2024, with its Bitcoin fund achieving the most successful launch in ETF history.

Larry Fink, the CEO of BlackRock, has previously characterized Bitcoin as “digital gold” and an “international asset,” emphasizing the potential of crypto networks to facilitate the tokenization of various assets.

BlackRock’s Insights on Bitcoin

The report emphasizes that, while solutions are available to safeguard Bitcoin against quantum threats — with the technical complexities of upgrading being relatively straightforward — the challenge of coordination is compounded by the cryptocurrency’s decentralized and consensus-driven nature.

BlackRock also noted that approximately 35% of the circulating Bitcoin supply may be susceptible to certain types of attacks due to exposed public keys, and estimates indicate that between 11-19% may be irretrievably lost irrespective of migration efforts.

In collaboration with notable industry players such as Coinbase, Fidelity Digital Assets, and Block, BlackRock recently announced the formation of a Bitcoin Security Consortium aimed at funding engineers committed to advancing open-source initiatives, including proposals like BIP-360.

While the report recognized BIP-360 as a credible component of a broader solution, it refrained from labeling it as the definitive answer. Nevertheless, it asserted that Bitcoin and other cryptocurrency networks inherently possess advantages in this context.

The report concluded, “It is a considerably less daunting task to upgrade existing cryptographic systems (including Bitcoin, Ethereum, and others) to a quantum-secure standard than it is to create a capable quantum computer given the current status of quantum computing advancements. Thus, the advantage lies firmly with defensive measures at this juncture.”

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