Microsoft claims to be able to help better secure crypto with its new technology
Microsoft’s latest quantum computing chip, Majorana 1, has sparked discussions about Bitcoin’s preparedness for a potential quantum threat. According to Bitcoin exchange River, this new development could accelerate the timeline for making Bitcoin quantum-resistant.
1 million qubits can potentially crack a Bitcoin address.
Microsoft says its new chip creates a path to get there.
How long does Bitcoin have to become quantum-resistant? And what’s actually at risk?
We break it down in this 🧵 pic.twitter.com/gY2hRJILMu
— River (@River) February 20, 2025
Microsoft unveiled the Majorana 1 chip on February 19, joining other tech giants like Google, which introduced its Willow chip in December. While a breakthrough in quantum computing that threatens Bitcoin remains years away, River noted that advancements like this could be pushing that timeline forward. If quantum computers reach the 1-million qubit threshold by 2027-2029, they could pose a risk to Bitcoin’s encryption, potentially cracking addresses through extended attacks.
Despite concerns, many in the crypto space argue that the quantum threat is exaggerated. Some believe that financial institutions and traditional banking systems, which hold significantly more assets than the crypto market, would be targeted first.
As of 2023, global banks controlled over $188 trillion in assets, compared to crypto’s $3.2 trillion market capitalization. Others suggest that quantum advancements could also be used to strengthen Bitcoin’s defenses rather than compromise them.
Experts like cryptographer Adam Back maintain that large-scale quantum computing is still decades away. Ongoing research into post-quantum cryptography aims to develop more efficient, secure signature methods that Bitcoin could integrate when necessary. Bitcoin advocate Adrian Morris also downplayed the risks, pointing out the technology’s current limitations in thermodynamics, memory, and calculation persistence.
Meanwhile, solutions are already in development. BIP-360, one of the leading proposals, suggests transitioning Bitcoin’s cryptographic structure to a quantum-resistant model through a soft fork. While some believe quantum computing won’t be a real concern for many years, the push to address potential vulnerabilities early reflects the ongoing effort to secure Bitcoin’s future.
