Quantum computers continue to advance, bringing a definitive threat to the crypto industry: the ability to crack digital signature algorithms. Glassnode estimates that 6.04 million BTC, or roughly 30% of the circulating supply, have public keys exposed on the blockchain. If fault-tolerant quantum computers successfully run Shor’s algorithm, they could recover private keys from those public keys on what is often dubbed “Q-Day.”
Technological breakthroughs like Google’s Willow processor are seen as accelerating the timeline toward cryptographically relevant quantum computers. In response, industry heavyweights including BlackRock, Coinbase, Strategy, Fidelity, and Galaxy formed the Bitcoin Security Consortium last month. The consortium has committed $15 million over three years dedicated specifically to quantum security research.
Proof of Ownership via Seed Phrase
AmericanFortress, a Wyoming-based blockchain security firm, offers a way forward through a paper titled “ZKPoSP: Post-Quantum Zero-Knowledge Proofs for Hierarchical Deterministic Wallets.” The research replaces elliptic curve signatures with zero-knowledge proofs. This new system retains compatibility with existing HD wallet address standards such as BIP32, BIP44, and SLIP-10.
The core innovation of ZKPoSP (Zero-Knowledge Proof of Seed Provenance) lies in its verification method. Users do not need to migrate their funds to new quantum-resistant addresses. Instead, asset ownership is proven through the seed phrase rather than individual private keys. The system is equipped with QBIP32, a key derivation scheme supporting multi-curve implementation.
A prototype of the system has been implemented in the Rust programming language using the RISC Zero ZK-VM virtual machine. Test results show that proof generation takes around 12 to 13 seconds, while the verification process takes 9 to 10 milliseconds.
Awaiting Network Consensus
This asset protection approach complements previous research. Project Eleven previously proposed a seed phrase-based post-quantum recovery mechanism, while BTQ Technologies has already released a BIP-360 implementation on the Bitcoin Quantum testnet.
Although the solution is available, AmericanFortress’s research has not yet been adopted by any network. Its implementation still requires broad consensus. The solution can only go live with full approval from Bitcoin developers, crypto wallet providers, exchanges, miners, and end users.
Reported by Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
