New $2M Funding Reveals Ethereum Foundation’s New Threat

The Ethereum Foundation has elevated post-quantum security to a top strategic priority. It announced the creation of a dedicated Post Quantum team with $2 million in funding. The move reflects growing concern that quantum computing could threaten existing blockchain cryptography within a shorter timeframe.

Ethereum Sets Post-Quantum Security Roadmap

The initiative was also confirmed by Ethereum researcher Justin Drake. He wrote in an X post that the foundation has transitioned from long-term research to active implementation. He also mentioned that Ethereum’s work in quantum defense started as early as 2019, as part of its initial strategic discussions at StarkWare Sessions.

The newly formed team for Post Quantum will be headed by Thomas Coratger. He will work with Emile, who is part of the leanVM team. Their responsibilities will include research as well as protocol design. Testing of the infrastructure will also form part of this team to ensure the security of Ethereum in the face of quantum threats.

Expanding coordination of Ethereum devs around post-quantum readiness. Antonio Sanso will be hosting bi-weekly. All Core Devs Post Quantum calls next month User-facing security concerns will be discussed in these calls. 

To build upon the cryptographic base, the foundation has announced two prizes that will be worth $1 million each. The new Poseidon Prize will focus on strengthening the security of the Poseidon hash function.

The existing Proximity Prize will continue to support research in hash-based cryptographic systems. Drake has noted that hash-based cryptography has strong security properties along with easy design assumptions.

The development of post-quantum consensus is already in progress in various networks. Zeam, Ream Labs, PierTwo, Gean client, and Ethlambda have started cooperating with the well-known Ethereum consensus clients Lighthouse, Grandine, and Prysm. Interoperability meetings take place once a week. These meetings are coordinated by Will Corcoran.

The foundation has also planned in-person collaboration. A three-day workshop with experts has been planned in October. It will be a continuation of its post-quantum workshop held in Cambridge a year ago. A new post-quantum dev day has been planned on March 29 in Cannes before EthCC.

Industry Views Differ on Quantum Risk

There are divided opinions in the wider blockchain industry about the timing of quantum risks. In an X post, Ethereum educator Sassal0x discussed quantum computing as a pressing issue. The CEO of Blockstream, however, believes that quantum risks are still decades away.

However, traditional financial institutions may experience challenges in embracing the new cryptography. Franklin Bi, the general partner at Pantera Capital highlighted in an X post that, blockchain has an edge over traditional institutions. Blockchain has the capacity to make global updates. As a result, some blockchains may be considered safe havens.

Additionally, Ethereum Co-Founder Vitalik Buterin has previously pointed to existing forecast data to highlight the probability of such breaks happening before the year 2030.

On the other hand, other developers such as the creator of the ZKsync network, Alex Gluk, pointed to the network’s existing “100% post-quantum proof” Airbender prover. Gluk went on to say this demonstrates Ethereum’s “flexibility to adapt to new threats in space.”

However, the Ethereum Foundation has announced its plans to release a guide detailing the transition process via pq.ethereum.org. The guide will include a list of steps that are meant to ensure a transition towards a state of quantum resistance. The goal is to ensure there is no downtime or loss of funds as the study of quantum continues.