QuFi Network has launched a new platform using post-quantum cryptography to verify digital asset transactions, aiming to protect against future quantum computing threats without altering existing blockchain settlement networks. A proof-of-concept, uBTC, is currently testing the system on the Bitcoin Testnet4.
This development addresses the growing concern within the cryptocurrency space regarding the potential threat posed by quantum computers to current blockchain security, offering a method to enhance digital asset protection without disrupting existing infrastructure.
Post-quantum infrastructure company QuFi Network has introduced a new verification platform designed to safeguard digital assets against potential threats from quantum computing. The platform operates by separating transaction verification from settlement, employing a decentralized network of nodes that validate transactions using post-quantum cryptography prior to their final settlement on existing blockchain networks. This approach aims to circumvent the increased storage, bandwidth, and computing requirements that could arise from integrating larger post-quantum signatures directly onto individual blockchains.
QuFi has also launched uBTC, a proof-of-concept application of its verification system to Bitcoin (BTC), currently running on Bitcoin Testnet4. The uBTC system is designed to verify BTC collateral and generate cryptographic proofs that govern value movement between settlement environments, with redemptions ultimately settling as standard Bitcoin transactions. The platform integrates three post-quantum cryptographic standards: ML-DSA-65, SLH-DSA, and ML-KEM-1024, for digital signatures and secure key exchange.
The introduction of QuFi's platform follows a series of recent initiatives to bolster blockchain networks against quantum computing risks. In August, StarkWare successfully tested a quantum-resistant Bitcoin transaction on the mainnet, though it required significant computation time and cost. Simultaneously, banks and regulators globally participated in a pilot program testing post-quantum wallets and on-chain transfers using ML-DSA-65. The Ethereum Foundation has also opted for established alternatives like SHA or BLAKE over the Poseidon hash function for its planned post-quantum architecture. Bitcoin developers are exploring protocol-level defenses, including the SHRINCS proposal by Blockstream researchers, which aims to reduce the size and performance costs of quantum-resistant signatures, albeit with trade-offs such as stateful signatures and increased complexity.