Coinbase is developing post-quantum cryptography safeguards to protect its $250 billion in institutional custody assets, including those of BlackRock. Led by Head of Cryptography Yehuda Lindell, the exchange is designing an adaptable architecture to prepare for future quantum threats to Bitcoin. Because post-quantum hash-based signatures may be incompatible with traditional Multi-Party Computation (MPC), Coinbase is researching a fallback system using programmable Hardware Security Modules (HSMs).
Uncertainty in Blockchain Adoption
- ▪Coinbase Head of Cryptography Yehuda Lindell stated that it is unlikely a single post-quantum signing scheme will be adopted by all blockchain networks.
- ▪It is currently unclear what kind of post-quantum signature scheme the Bitcoin network or other blockchains will adopt in practice.
MPC Challenges and Research
- ▪Many post-quantum signature schemes, particularly hash-based signatures, may be incompatible with traditional Multi-Party Computation (MPC) due to a lack of underlying arithmetic structure.
- ▪Multi-Party Computation (MPC) allows different parties to hold distinct shares of a private key to execute transactions off-chain without assembling the complete key on a single device.
- ▪Cryptographers like Dan Boneh are researching potential Multi-Party Computation (MPC) solutions for hash-based signatures, such as those detailed in the 'PRAWNS' paper, but this research remains in an experimental phase
Coinbase's HSM Fallback Architecture
- ▪Coinbase is researching a fallback architecture combining post-quantum threshold decryption with programmable, physically secure Hardware Security Modules (HSMs) in private data centers, where keys are assembled only within the HSMs.
- ▪Coinbase Head of Cryptography Yehuda Lindell stated that Hardware Security Modules (HSMs) provide strong protection through physical side-channel protections and strict code-upload controls.
Coinbase post-quantum architecture
- ▪Coinbase's timeline for completing its post-quantum security measures remains uncertain, according to Coinbase Head of Cryptography Yehuda Lindell
- ▪Coinbase is developing an agnostic, adaptable post-quantum custody architecture to support whatever signing scheme Bitcoin or other blockchains adopt, according to Coinbase Head of Cryptography Yehuda Lindell.
Coinbase asset safeguarding
- ▪Coinbase safeguards approximately $250 billion in digital assets on behalf of institutional clients, including BlackRock.
- ▪Coinbase has spent years refining Coinbase's procedures for safeguarding institutional digital assets
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