Blockstream Research has deployed the first live Bitcoin sidechain transactions protected by post-quantum cryptography on its Liquid network. The solution uses a smart contract language called Simplicity, allowing users to opt into quantum-resistant signatures without changing Bitcoin’s core protocol. This follows recent warnings from researchers about the potential for future quantum computers to break existing cryptographic security protecting crypto wallets.
Blockstream Research has executed the first transactions on a live Bitcoin sidechain using post-quantum cryptography. This addresses growing warnings that advanced quantum computers could one day break the security of cryptocurrency wallets.
The firm deployed a post-quantum signature scheme known as SHRINCS on the Bitcoin Liquid sidechain. According to their announcement, users can lock funds into contracts that require these quantum-resistant signatures to spend them.
Rather than requiring changes to Bitcoin’s core rules, the approach lets users opt into quantum-resistant protection at the contract level. It uses Blockstream‘s Simplicity smart contract language to add new security conditions.
Their research responds to a recent paper examining quantum risks across crypto wallets, block validation, and cross-chain bridges. The work identified four main quantum risks for sidechains, including forged transaction and block signatures.
The community debates the urgency of these quantum threats. Former Binance CEO Changpeng Zhao recently stated “there is no need to panic,” suggesting networks can upgrade when needed.
Zhao pointed out an estimated one million BTC linked to Satoshi Nakamoto are in a wallet format vulnerable to quantum attack. He suggested those coins may eventually need to be locked or removed from circulation if never moved.
Blockstream is also developing a related scheme called SHRIMPS, designed for Bitcoin’s block space limits. A Bitcoin Improvement Proposal for this technology is currently in progress.
