QuFi Rolls Out Post-Quantum Security Layer With UBTC Bitcoin Test

QuFi Rolls Out Post-Quantum Security Layer With UBTC Bitcoin Test

Post-quantum infrastructure company QuFi Networks has launched a verification platform designed to protect digital assets against future quantum computing threats without requiring changes to existing blockchain settlement networks.

The platform separates verification from settlement, using a decentralized network of nodes to verify transactions with post-quantum cryptography before they are settled on existing blockchain networks.

QFi also launched UBTC, a proof-of-concept that implements a verification system in Bitcoin (BTC) and is currently working on Bitcoin Testnet 4. The uBTC system verifies BTC collateral and creates cryptographic evidence controlling how value moves within the settlement environment, while redemptions are ultimately settled as standard bitcoin transactions.

The platform uses three post-quantum cryptographic standards — ML-DSA-65, SLH-DSA and ML-KEM-1024 — for digital signatures and secure key exchange.

qfi said The external verification layer is intended to avoid the additional storage, bandwidth, and computing demands that can come with adopting larger post-quantum signatures directly on individual blockchains.

Related: Crypto’s first quantum attack will look like an undisclosed breach: Qantas founders

Increases crypto quantum defenses

The platform comes amid a series of recent efforts to prepare blockchain networks for potential quantum computing threats.

In August, Starkwire tested a quantum-resistant bitcoin transaction on the mainnet without the need for a fork. However, the transaction took several hours to calculate and cost roughly $150 to $200, and its non-standard format required a direct deposit to a miner.

Jonas Nick announced the BIP SHRINCS offer on August 26th. Source: Jonas Nick

That same month, banks and regulators across Europe, the Middle East and Asia joined a pilot testing post-quantum wallets and onchain transfers using ML-DSA-65, one of the same cryptographic standards included in QuFi’s platform. Meanwhile, the Ethereum Foundation has dropped the Poseidon hash function from its planned post-quantum architecture in favor of established alternatives like SHA or BLAKE.

Bitcoin developers are also exploring protocol-level defenses. In August, Blockstream researchers published a Bitcoin improvement proposal for SHRINCS, an experimental post-quantum signature scheme designed to reduce the size and performance costs associated with quantum-resistant signatures.

The approach comes with trade-offs. SHRINCS uses state signatures to reduce their size, requiring wallets to track previously used signing keys. The scheme remains in its infancy without full security proof and its design adds complexity and potential user failure modes.

magazine: Bitcoin’s New Quantum Defense, Cancels 18.9M SOL: Hodler’s Digest

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