Bitcoin Community Advocates for BIP-360: A Quantum-Resistant Upgrade

As concerns about quantum computing grow, an increasing number of Bitcoin supporters and cryptocurrency fund managers are calling for expedited development of quantum-resistant signatures. They argue that the looming threat of quantum technology could pose market risks before it becomes a tangible issue.

Key Takeaways

A growing number of Bitcoin proponents are advocating for BIP-360 to enhance the network's resistance to quantum computing.
Concerns over quantum threats could impact Bitcoin's market perception, prompting calls for quicker action on quantum-resistant technology.
While some experts believe the quantum threat is distant, others emphasize the need for effective upgrades like BIP-360.
The Taproot format, which has shown declining usage, is vulnerable to quantum attacks compared to older signature methods.
Proposed hash-based signature alternatives may offer viable solutions for securing Bitcoin against future quantum threats.

Bitcoiners push for quantum-resistant BIP-360 upgrade as debate heats up

Supporters are focusing on a draft Bitcoin Improvement Proposal (BIP-360), which aims to introduce a post-quantum signature option for Bitcoin addresses that might be vulnerable to advances in quantum computing. Charles Edwards, founder of the quantitative Bitcoin and digital asset fund Capriole, stated that this implementation should be finalized and rolled out by 2026. However, Capriole pointed out that reaching consensus among hardware wallet providers, node operators, and cryptocurrency exchanges will be essential. Edwards warned, “Around 20-30% of Bitcoin will be taken by a quantum hacker in the next few years. I believe we should burn all coins that do not migrate to BIP-360 by 2028.”

Image Source: Charles Edwards

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In contrast, some industry experts claim that quantum computing poses a short-term risk to Bitcoin’s price. Adam Back, co-founder and CEO of Blockstream and inventor of Hashcash, emphasized on X that "Bitcoin does not use encryption. Get your basics right," asserting that the quantum threat is still "decades away." Similarly, Samson Mow, CEO of Bitcoin technology company Jan3, dismissed fears surrounding early quantum computing’s impact on Bitcoin. He stated in a Wednesday post, “Quantum computing can’t even factor 21, yet people are panic selling because they think it will kill Bitcoin.”

Image Source: Willy Woo

Questions About Taproot and Competing Proposals

Bitcoin’s latest Taproot format, regarded as quantum vulnerable, is witnessing a decline in adoption, falling from 42% of transactions in 2024 to only 20% now. This reduction may indicate user concerns about potential quantum threats. Bitcoin analyst Willy Woo remarked, “I’ve NEVER seen the latest format losing adoption before. Taproot is Quantum Vulnerable, while older SegWit and Legacy are not.”

The Taproot update represents the most significant improvement to Bitcoin since 2017, when the Segregated Witness (SegWit) protocol was activated. It was designed to enhance the privacy and efficiency of the Bitcoin network.

In the meantime, Back has proposed a new hash-based signature scheme as a promising post-quantum alternative for Bitcoin. This would hinge security solely on hash function assumptions similar to those already in use in Bitcoin's design.

Hash-based signature schemes for Bitcoin, research paper. Source: Blockstream Research

According to research from Blockstream, hash-based signature schemes like ECDSA and Schnorr signatures “offer a promising path for securing Bitcoin in a post-quantum world.” ECDSA employs elliptic-curve cryptography to validate the authenticity and integrity of messages, while Schnorr signatures are favored for better privacy and smaller data sizes, allowing multiple signatures to be combined into one.

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