Quantum fears already limiting Bitcoin’s growth, Stacks founder says

Stacks founder Muneeb Ali has identified that quantum fears are a significant impediment to institutional investment in Bitcoin. He emphasized the necessity of a well-defined security upgrade roadmap to restore investor confidence in the cryptocurrency.

Ali, speaking on Cointelegraph's Chain Reaction podcast, indicated that this quantum uncertainty could lead institutions to delay significant Bitcoin acquisitions until a credible path to quantum-resistant security is firmly established. Stacks, a Bitcoin layer-2 network, enables smart contracts and decentralized applications on the Bitcoin blockchain, using Bitcoin as its foundational settlement layer.

Urgency of Quantum Threat and Timeline

Ali warned that Bitcoin could face increased risks if substantial progress on quantum-resistant security is not achieved by 2028. He noted that implementing such upgrades typically requires several years, with additional time needed for users to migrate their holdings to new addresses.

He identified 2030 as a target for the transition to quantum-resistant security, referencing guidance from the US National Institute of Standards and Technology (NIST). Ali also suggested that advancements in artificial intelligence might accelerate the development of quantum computers, potentially moving this timeline forward to 2029.

While acknowledging that some Bitcoin proponents consider the quantum computing threat to be distant, Ali argued that internal disagreements regarding the urgency of the threat could erode investor confidence, particularly in the absence of a defined upgrade roadmap.

Solutions and Industry Implications

Despite his concerns, Ali posited that a sufficiently powerful quantum computer would more likely originate from a major research institution than an unknown actor. He suggested that entities like Google or Microsoft would have little incentive to exploit such technology for Bitcoin theft due to potential legal repercussions. Ali also noted that a quantum security breach affecting Bitcoin would have widespread implications across the entire cryptocurrency industry.

In related developments, developers are actively exploring solutions to protect Bitcoin from quantum attacks. In September, StarkWare reported a 79% reduction in the estimated computing cost for an experimental quantum-resistant Bitcoin transaction following an optimization challenge. This method does not necessitate changes to Bitcoin's consensus rules, though the cost reductions have only been demonstrated in benchmark tests. StarkWare views this technology as a last-resort measure, continuing to advocate for a protocol-level upgrade as a more enduring solution.

Simonas Brazionis

Blockchain Expert

Simonas is a crypto and blockchain expert with 6 years of experience. Passionate about the industry he educates others on blockchain technology, and continuously expands his knowledge. He has helped many newcomers understand crypto, navigate investments, and stay informed about trends like DeFi and NFTs.