Quantum computing presents a significant threat to crypto, with sluggish governance mechanisms risking blockchain vulnerabilities, says Colton Dillion, co-founder of Quip Network, which offers quantum-proof vaults for digital asset storage. Although still nascent, quantum computing—leveraging quantum states of subatomic particles for calculations instead of traditional transistors and binary code—is advancing rapidly, with companies like Google and Microsoft actively pursuing R&D. The objective is a dramatic boost in processing speed that simplifies complex tasks such as breaking encryption protecting blockchains. Once quantum computing becomes accessible, attackers are unlikely to reveal themselves immediately. “The threat won’t begin with Satoshi's keys being stolen, ” Dillion explained in an interview. “Quantum attacks will be subtle, quiet, and gradual—like whales discreetly moving funds. By the time the community notices, it will be too late. ” Dillion envisions a doomsday scenario involving a quantum-enabled double-spend attack. Quantum computing could theoretically reduce the mining power needed for a classic 51% attack to approximately 26%, he noted. “So now you've compromised the 10, 000 largest wallets. You rewind the blockchain, liquidate those wallets, then double-spend all the transactions—this is the real nuclear bomb, ” he described. The industry, naturally, is striving to develop solutions. For example, Bitcoin developer Agustin Cruz proposed QRAMP, a Bitcoin Improvement Proposal (BIP) mandating a hard-fork migration to quantum-secure addresses.

Meanwhile, quantum startup BTQ suggests replacing proof-of-work consensus entirely with a quantum-native approach. However, these proposals require community consensus, and blockchain governance—through mechanisms like Bitcoin Improvement Proposals (BIPs) and Ethereum Improvement Proposals (EIPs)—is typically fraught with politics, causing prolonged, cautious decision-making. For instance, the Bitcoin community’s recent decision on the OP_RETURN function took years, with extensive developer debates over appropriate blockchain use. Similarly, Ethereum’s upgrades, including the Merge, encountered lengthy discussions and delays. Dillion asserts that slow governance leaves crypto exposed because quantum threats evolve faster than protocols can adapt. “Everyone tries to manage this top-down via BIPs or EIPs to secure broad agreement, but that’s a heavy lift, ” he said. Quip Network’s quantum-proof vaults aim to bypass political gridlock by enabling immediate user-level adoption, eliminating the need for protocol upgrades. These vaults employ hybrid cryptography, combining classical cryptographic standards with quantum-resistant methods, ensuring security independent of blockchain protocols. Effectively, they allow whales—holders of vast cryptocurrency amounts—to safeguard their assets while governance mechanisms catch up. He stresses that crypto communities cannot afford slow deliberations. “The BIP and EIP processes work well for governance but are poor for rapid threat response, ” Dillion said. “When quantum arrives, attackers won’t wait for consensus. ” Colton Dillion is speaking at the IEEE Canada Blockchain Forum, part of Consensus 2025 in Toronto. The IEEE is a Knowledge Partner of Consensus.