Blockchain security company AmericanFortress published a technical paper on the Cryptography ePrint Archive proposing a cryptographic scheme to protect existing cryptocurrency wallets from quantum attacks without requiring users to move funds, rotate keys, or change wallet addresses. The proposal addresses the vulnerability of elliptic curve cryptography used across Bitcoin, Ethereum, Solana, and other blockchain networks to sufficiently powerful quantum computers. According to a Bloomberg analysis cited by AmericanFortress, up to $470 billion in Bitcoin could be vulnerable to quantum attacks if such computers become available. The unpeer-reviewed paper describes the scheme as compatible with seed-based hierarchical deterministic wallets and states it uses zero-knowledge proofs derived from a wallet's original seed phrase instead of replacing underlying elliptic curve cryptography.
AmericanFortress Publishes Quantum-Safe Wallet Proposal on Cryptography ePrint Archive
AmericanFortress published its proposal in a technical paper on the Cryptography ePrint Archive. The paper describes the scheme as compatible with seed-based hierarchical deterministic wallets used across Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other blockchain networks that rely on elliptic curve cryptography. The paper has not yet been peer-reviewed.
According to the paper, the scheme uses zero-knowledge proofs derived from a wallet's original seed phrase instead of replacing the elliptic curve cryptography underlying existing wallets. AmericanFortress said participating nodes would verify those proofs while users continue signing transactions with their existing keys. Unlike most proposed post-quantum approaches, AmericanFortress said its scheme allows existing wallet addresses to remain unchanged while adding post-quantum protection.
Freedom Factory Unveils PQ1 Post-Quantum Hardware Wallet
On Tuesday, Freedom Factory unveiled PQ1, which it describes as a post-quantum hardware wallet designed for Ethereum and other Ethereum Virtual Machine (EVM)-compatible networks. Unlike AmericanFortress' software-based approach, PQ1 uses post-quantum cryptographic signatures generated on dedicated hardware.
According to Freedom Factory, the wallet uses SPHINCS+C10 signatures and ERC-4337 smart accounts to secure transactions against future quantum attacks.
Blockchain Projects Announce Quantum Security Funding and Roadmaps
Developers have increasingly focused on post-quantum cryptography because sufficiently powerful quantum computers could eventually break the elliptic-curve cryptography used to secure Bitcoin, Ethereum, and many other blockchain networks. Although such computers are not yet available, several blockchain projects have already begun researching migration strategies.
In recent months, a Strategy-led consortium pledged $15 million to fund Bitcoin quantum security research. The Ethereum Foundation published a proposal for migrating accounts to quantum-resistant cryptography. Algorand outlined plans to introduce quantum-resistant accounts by 2027.
FAQ
What cryptographic approach does AmericanFortress propose for quantum-safe wallet protection?
AmericanFortress published a technical paper proposing a scheme that uses zero-knowledge proofs derived from a wallet's original seed phrase instead of replacing the elliptic curve cryptography underlying existing wallets. The company said participating nodes would verify those proofs while users continue signing transactions with their existing keys, allowing existing wallet addresses to remain unchanged while adding post-quantum protection.
How much Bitcoin could be vulnerable to quantum attacks according to Bloomberg analysis?
AmericanFortress cited a recent Bloomberg analysis estimating that up to $470 billion in Bitcoin could be vulnerable to quantum attacks if sufficiently powerful quantum computers become available.
What quantum security initiatives have blockchain projects announced?
In recent months, a Strategy-led consortium pledged $15 million to fund Bitcoin quantum security research, the Ethereum Foundation published a proposal for migrating accounts to quantum-resistant cryptography, and Algorand outlined plans to introduce quantum-resistant accounts by 2027.
