Bitcoin developers have proposed a soft fork to enhance quantum resistance for Taproot addresses. The BIP-360 proposal aims to replace a vulnerable data path to mitigate long-term exposure risks. Market analysts suggest resolving this technical concern could bolster investor confidence during a period of market uncertainty.
Bitcoin core developers have proposed a new soft fork to address quantum computing risks. The BIP-360 plan targets vulnerabilities in Pay-to-Taproot (P2TR) addresses.
These addresses expose public keys on-chain when funds are spent. The proposal would replace the exposed path with a more private Pay-to-Merkle-Root (P2MR) system.
Analyst Willy Woo previously said Taproot addresses were most exposed to quantum risk. Their market share has since dropped from 54% in early 2024 to 22% by early 2026.
The update specifically aims to reduce “long exposure attacks” on these addresses. It does not resolve “short exposure attacks” from transaction pools.
Developers noted P2MR is a step toward a broader quantum-secure upgrade. “We believe it’s worth considering this path in the future,” they stated.
Former Ripple CTO Joel Katz warned a fork is necessary for Bitcoin’s quantum proofing. “Bitcoin will, at some point, need a fork to be quantum proof,” he said.
Grayscale noted the quantum concern could suppress ETF demand. Resolving it might renew interest and lift prices.
Bitwise CEO Matt Hougan added that positive data points are accumulating. “But we’re at least starting to put a few points on the board,” he remarked.
