Blockstream Researchers Develop Quantum-Secure Signature System for Bitcoin

Researchers at Blockstream have proposed a solution to secure Bitcoin transactions against quantum computers. The team has developed a new signature system called SHRINCS, which would protect private keys without significantly reducing the number of transactions that can fit in a block.

The current digital signatures used by Bitcoin are based on elliptic-curve cryptography, but they could be broken by a powerful enough quantum computer running Shor's algorithm. This could allow an attacker to forge signatures and spend coins, potentially compromising millions of dollars worth of cryptocurrency.

One potential problem with SHRINCS is its size - post-quantum signatures can be dozens of times larger than the current ones used in Bitcoin. However, Blockstream estimates that this would not be a major issue, as the new system would only require around 580-byte signatures to reach three transactions per second.

The proposal for SHRINCS is still early and requires further development before it can be implemented on the main Bitcoin network. The team plans to bring it to Liquid, a separate blockchain operated by Blockstream, first.