Author: CryptoSlate

Translation: Shenchao TechFlow

Introduction by Shenchao: Quantum computers cannot crack Bitcoin today, but the real challenge is that developers, miners, wallets, exchanges, custodians, and users need years to coordinate a defensive upgrade. Galaxy Digital's $5 million funding program attempts to push this marathon-like transition before the threat becomes reality, but funding can only accelerate technological development and cannot replace the hardest part of Bitcoin's decentralized governance—achieving consensus across the entire network and acting in sync.

On July 21, Galaxy Digital committed up to $5 million to help Bitcoin prepare for the quantum era. The program will provide funding support as developers reach key milestones, while also funding research and a quantum advisory board.

Quantum computers cannot currently crack Bitcoin's signature security, but the goal of the program is to start pushing for migration before such a threat becomes real.

The program targets multiple links in the transition chain: reviewing quantum-resistant transaction proposals, integrating post-quantum signatures, formal security audits, and software and institutional migration tools.

Funding can accelerate these workflows, but Bitcoin's decentralized governance still requires developers, miners, node operators, wallets, exchanges, custodians, and users to coordinate an upgrade. Galaxy states that the design, testing, and deployment of this upgrade could take several years.

Technical risks have two time windows. A sufficiently powerful quantum computer can use Shor's algorithm to recover private keys from exposed elliptic curve public keys and forge valid signatures. Keys visible on-chain leave attackers with a long window of opportunity. Most Bitcoin expenditures also expose public keys while transactions wait to enter the mempool, creating a shorter window for faster attacks.

Bitcoin encryption will not be threatened by quantum computers for a simple reason: it does not actually exist

The BIP 360 draft notes that pay-to-public-key, naked multisignatures, and Taproot outputs are long-term exposed. Address reuse, extended public keys, and wallet descriptors may also expose vulnerable material. Hash-protected outputs will hide public keys until spending or other disclosures occur.

BIP 360 will add a new Pay-to-Merkle-Root output via a soft fork. This scheme, known as P2MR, abandons the key path of Taproot, limits long-term exposure, and leaves room for stronger signature schemes in the future.

The proposal remains a draft and only covers the first exposure window. Protecting transactions after keys appear in the mempool may require post-quantum signatures.

This "quantum-safe" Bitcoin scheme removes the key path of Taproot—and deliberately raises transaction fees

This is where Galaxy's funding program can help translate research into reviewed code and migration tools, but funding cannot select Bitcoin's final design or arrange its adoption timeline.

The second proposal, BIP 361, illustrates the scale of operations. This draft informational BIP relies on an unspecified post-quantum signature proposal and outlines a transition activated in about five years, divided into two phases. Its timeline is merely a scenario rather than an adopted roadmap.

After a design is selected, the network still needs proposal and signature reviews, audits, wallet and node releases, institutional upgrades, and holder migrations. Users will need time to transfer funds into protected outputs while existing signatures can still be used safely. Each dependency makes last-minute responses more difficult.

Bitcoin's quantum migration plan forces the network to choose between freezing and stolen coins

Broader cryptographic projects have been working over many years. NIST finalized three post-quantum standards in August 2024, including two digital signature standards, and urged early integration as migration takes time. Executive Order 14412 directs the Office of Management and Budget to require designated federal systems to use post-quantum signatures by December 31, 2031.

These federal rules only cover government systems and do not predict when quantum hardware will arrive. But they explain why Galaxy wants to start early. Bitcoin still needs a thoroughly reviewed signature design, widespread community consensus, and sufficient time for users to transfer funds, so research and tools cannot wait until the threat is imminent.