How Does the Emergence of Quantum Computing Threaten the Security of Current Hash Functions?

Quantum computers, specifically through Shor's algorithm, pose a significant threat to the public-key cryptography (like ECDSA) used for wallet signatures. However, they pose a lesser, but still relevant, threat to the collision resistance of hash functions like SHA-256.

Grover's algorithm could potentially reduce the collision search space from 2^128 to 2^64. While 2^64 is still large, it is much closer to being breakable, necessitating a shift to quantum-resistant hash functions.