Microsoft’s latest breakthrough in quantum computing may bring Bitcoin closer to adopting quantum-resistant encryption sooner than expected. The Majorana 1 chip, unveiled on February 19, introduces a new class of quantum technology designed to scale beyond current computational limitations. According to Bitcoin exchange River, this innovation could significantly shorten the timeline for addressing Bitcoin’s vulnerability to quantum attacks.
River, in a February 20 post on X, highlighted the potential implications of Microsoft’s quantum computing advances, stating, “The Majorana 1 chip is far from that scale now, but could reach the 1-million mark by 2027-2029.
When run for several days to weeks, a 1-million-qubit QC could potentially crack Bitcoin addresses via a long-range attack.” While experts debate the immediacy of the quantum threat to Bitcoin, Microsoft’s advancements have accelerated discussions on post-quantum security measures.
Quantum Threats and the Bitcoin Security Debate
Concerns over quantum computing’s impact on Bitcoin are not new. The underlying cryptography that secures Bitcoin transactions relies on elliptic curve digital signatures, which could be vulnerable to quantum attacks capable of rapidly solving complex mathematical problems. While current quantum computers lack the necessary scale to pose an immediate risk, the Majorana 1 chip introduces new variables into this equation.
Some industry experts, however, believe the quantum threat is overstated. Cryptographer Adam Back argues that robust post-quantum cryptographic solutions will emerge before quantum computers become capable of breaking Bitcoin’s encryption. Bitcoin advocate Adrian Morris also weighed in, dismissing concerns by labeling quantum computing as “barely a viable technology,” with significant barriers in thermodynamics, memory, and computation persistence.
Yet, others warn against complacency. Alexander Leishman, CEO of River, acknowledged that while the entire financial system could face threats before Bitcoin, centralized institutions employ multiple layers of security beyond cryptography. In contrast, a Bitcoin attack would require only knowledge of a public key, making proactive security upgrades essential.
BIP-360 and the Path to Quantum Resistance
One proposed solution to Bitcoin’s quantum vulnerability is BIP-360, which outlines a transition to quantum-resistant cryptographic methods. Preston Pysh, co-founder of The Investor’s Podcast Network, described it as “the main one being proposed,” noting that it could be implemented via a soft fork.
The adoption of quantum-resistant algorithms could ensure Bitcoin’s long-term security without disrupting its existing framework.
Unlike traditional encryption, post-quantum cryptography relies on lattice-based and hash-based methods designed to withstand quantum attacks. While these solutions require further testing and community consensus, Microsoft’s advancements have increased the urgency of their implementation.
