AI-generated Crypto
07 Apr 2026
Read 15 min
Post-quantum upgrades for Bitcoin How to protect $1.3T now *
post-quantum upgrades for Bitcoin harden addresses and mempool defenses to protect $1.3 trillion now
Why post-quantum upgrades for Bitcoin are on the table
Long exposure: public keys already onchain
Coins in certain address types expose their public keys before they move. Old pay-to-public-key (P2PK) outputs used by Satoshi and early miners are the clearest case. Taproot (P2TR), activated in 2021, also makes a public key part of the output, which means the key is visible the moment the coin exists. About 1.7 million BTC sits in old P2PK outputs, including coins linked to Satoshi. These coins carry ongoing risk in a post-quantum world.Short exposure: mempool timing risk
When you broadcast a transaction, your public key and signature enter the mempool. They remain visible until a miner includes the transaction in a block. A quantum attacker could try to compute the private key fast enough to submit a competing transaction within that small window. Speed and timing become the issue.BIP360 (P2MR): Hide the key until you spend
BIP360 proposes Pay-to-Merkle-Root (P2MR), which removes the always-visible onchain public key from new outputs. If the network never reveals your public key until you actually spend, a quantum attacker has nothing to target during long exposure. Lightning, multisig, and other features can still work because P2MR commits to spending conditions via a Merkle root rather than a naked key. Benefits:- Removes the permanent target for long-exposure attacks on new coins.
- Keeps most user workflows similar, with changes mainly at the script level.
- Protects only new outputs going forward. It does not fix coins that already exposed keys.
- Requires a soft fork and wide ecosystem support.
Hash-based signatures: SPHINCS+ (SLH-DSA) and leaner variants
ECDSA and Schnorr rely on math that Shor’s algorithm breaks at scale. Hash-based signatures do not. SPHINCS+ (standardized by NIST as FIPS 205 under the name SLH-DSA) is a leading candidate for quantum-resilient signing. It uses well-understood hash functions and avoids known quantum traps. The tradeoff is size. A typical ECDSA or Schnorr signature is about 64 bytes. SPHINCS+ signatures are around 8 kilobytes or more. If Bitcoin used those signatures widely, blocks would fit fewer transactions and fees would likely rise. That cost is the central hurdle. To address size, researchers are exploring variants like SHRIMPS and SHRINCS. These proposals try to keep the post-quantum security of SPHINCS+ while shrinking signature footprints. They are early-stage ideas, but they point toward a path where quantum safety does not crush throughput. What to watch:- Signature size versus verification time: Smaller is better for fees and capacity, but verification cost also matters for nodes.
- Migration design: A phased approach could let users choose post-quantum signatures for high-value UTXOs first.
- Layering: Combining P2MR with hash-based signatures could minimize long exposure and deliver quantum-safe spending at the moment of reveal.
Mempool shield: Commit/Reveal as an emergency brake
To address short exposure, Lightning co-creator Tadge Dryja proposed a commit/reveal scheme via soft fork. The idea splits spending into two steps.How it works
First, you publish a commitment onchain: a hash that seals the intent to spend specific coins under specific conditions, but reveals nothing about your public key. This creates a timestamped fingerprint. Later, you broadcast the real transaction that exposes the key and signature. If a quantum attacker forges a competing spend after seeing your key, nodes can reject it because only the transaction that matches a prior commitment is valid. The attacker lacks that earlier commitment. Pros:- Shields the mempool window where quantum theft is most time-sensitive.
- Gives honest users a provable “first in line” claim for their spend.
- Adds overhead, because spending becomes a two-step process.
- Costs more block space and fees due to the extra commitment transaction.
Old exposed coins: The Hourglass V2 debate
Some coins, especially in P2PK outputs, are already exposed and may be easy targets once a strong quantum computer arrives. Developer Hunter Beast’s Hourglass V2 proposal takes a market-protection angle. It would slow the rate at which these high-risk coins can move, for example by limiting them to one BTC per block. The goal is to prevent a fire sale if millions of exposed coins try to exit at once. Supporters argue:- Rate limits can prevent a panic crash if theft starts.
- It gives exchanges, custodians, and users time to react and patch systems.
- Any limit feels like censorship or confiscation, clashing with Bitcoin’s ethos.
- Attackers could still drain coins gradually, while honest owners might face friction.
Post-quantum upgrades for Bitcoin: adoption, timing, and user steps
Network changes take time. Developers, miners, and node operators must agree on designs and code. Then wallets, exchanges, and services must adopt them. Good governance protects Bitcoin from rushed mistakes, but it also means no instant fix. What can users do now?- Minimize mempool time: Use appropriate fees and Replace-By-Fee or Child-Pays-For-Parent to get fast confirmations.
- Avoid exposing new keys: Prefer output types that do not reveal public keys until spend, where possible, until stronger protections like P2MR arrive.
- Consolidate wisely: Reduce future signing events on low-value UTXOs to lower total exposure over time.
- Monitor proposals: Track BIP360, commit/reveal discussions, and hash-based signature research so you can move early when safe options ship.
- Plan migrations: If you hold coins in legacy or P2PK-style outputs, plan a path to safer outputs ahead of any “Q-day” scare.
- Deploy P2MR to cut new long-exposure risk.
- Adopt commit/reveal to blunt mempool attacks during the transition.
- Introduce optional hash-based signatures for high-value or institutional use first.
- Iterate on signature-size reductions (e.g., SHRIMPS/SHRINCS) to scale to mainstream use.
FAQ
Keep reading, keep building
Three things from our own workshop that fit this topic:
- Diktly Free is our dictation app for Mac: speech becomes text entirely on your own machine, nothing goes to the cloud. Free version, Basic 14.99 €.
- 1000+ Prompts to Level Up Your Life is our most downloaded pack. Pay what you want, including 0.
- OpenAI Agent Mode for Beginners walks you through letting AI agents handle tasks for you. 19.99 $.
Our own products. Tech Moments is our newsletter on AI and tech in plain language, one email, no noise. Subscribe below.
* The information provided on this website is based solely on my personal experience, research and technical knowledge. This content should not be construed as investment advice or a recommendation. Any investment decision must be made on the basis of your own independent judgement.
Contents





