Ark Invest and Unchained Capital point out that approximately 34.6% of Bitcoin, mainly concentrated in early, reused, and Taproot addresses, may become vulnerable due to future quantum computers cracking existing encryption technologies.
Ark Warns of Quantum Risk to Traditional Bitcoin
This issue is long-standing, and progress on fixes is slow. The rapid development of quantum computing poses a potential threat to blockchain networks that rely on specific cryptographic algorithms. Once quantum computers have sufficient computing power, they may be able to crack the public-key cryptography used to protect Bitcoin transactions, allowing attackers to steal funds. Early addresses and reused addresses are more vulnerable to such attacks due to the way their keys are exposed.
Although Taproot addresses are improved in design, they are not completely immune to quantum computing. Ark Invest emphasizes that the community needs to actively develop and deploy quantum-resistant cryptography technologies to ensure the long-term security of the Bitcoin network. Currently, progress on solutions to this threat is slow, requiring broader attention and investment to protect the security of the Bitcoin ecosystem.