Cardano Prepares for Quantum Risks with Optional Zero-Knowledge Proof Layer

The Cardano Foundation has put forward two security proposals for community review, including a plan to prepare ADA wallets for potential quantum risks.

CIP-0197 proposes an optional zero-knowledge proof layer for Cardano HD wallets that would protect existing addresses without requiring users to migrate funds.

This proposal targets a known weakness in Ed25519-based wallets, which could become vulnerable if powerful quantum computers can run Shor's algorithm at scale.

The recommended first phase of CIP-0197 would keep classical signatures on-chain and allow wallets, exchanges, and indexers to verify new proofs off-chain.

CPS-0034 addresses a different risk by expanding Plutus Core conformance testing for alternative node implementations to ensure they match the reference evaluator.