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QuFi launches post-quantum verification platform with Bitcoin testnet proof

Cointelegraph · Nate Kostar

Post-quantum infrastructure firm QuFi Network has introduced a verification platform designed to safeguard digital assets against future quantum computing threats without altering existing blockchain settlement systems. The platform decouples verification from settlement through a decentralized network of nodes employing advanced post-quantum cryptographic standards, demonstrated via the uBTC proof-of-concept running on Bitcoin Testnet4.

QuFi’s platform features

QuFi has developed a system that decouples verification from settlement, whereby transactions are validated via a decentralized network of nodes employing post-quantum cryptography before final commitment on blockchain.

As part of its launch, QuFi introduced uBTC, a proof-of-concept applying the verification mechanism to Bitcoin. Operating on Bitcoin Testnet4, uBTC verifies BTC as collateral and produces cryptographic proofs governing value transfer between settlement environments, with redemptions settling as standard Bitcoin transactions.

The platform utilizes three post-quantum cryptographic standards—ML-DSA-65, SLH-DSA, and ML-KEM-1024—for digital signatures and secure key exchange.

QuFi explains that this external verification layer is intended to alleviate the added storage, bandwidth, and computational burdens that would come from embedding larger post-quantum signatures directly into individual blockchains.

Context and progression of post-quantum crypto efforts

QuFi’s platform launch comes amid heightened industry focus on preparing blockchain networks against quantum computing threats.

In August, StarkWare successfully tested a quantum-resistant Bitcoin transaction on mainnet without a fork. However, the transaction took hours to compute, cost approximately $150–$200, and required direct miner submission due to its nonstandard format.

That same month, banks and regulators across Europe, the Middle East, and Asia participated in pilot testing of post-quantum wallets and on-chain transfers using ML-DSA-65, one of the cryptographic standards integrated by QuFi.

The Ethereum Foundation discarded the Poseidon hash function in its post-quantum architecture plans, opting for more established alternatives such as SHA and BLAKE.

Protocol-level development and challenges

Bitcoin developers are also exploring protocol-level post-quantum defenses. In August, Blockstream researchers published a Bitcoin Improvement Proposal for SHRINCS, an experimental post-quantum signature scheme designed to reduce signature size and improve performance.

SHRINCS employs stateful signatures to minimize their size, necessitating wallets to track previously used signing keys. The scheme remains in early stages without complete security proof, and its design adds complexity and potential failure points for users.

Why it matters

This news is significant because QuFi introduces an innovative approach to securing digital assets against quantum computing threats without necessitating disruptive changes to existing blockchain networks. By separating verification from settlement, the platform reduces burden on blockchains and facilitates scalable integration of post-quantum cryptographic standards. In a context where industry participants and regulators are actively piloting and developing quantum-resistant solutions, the practical demonstration on Bitcoin Testnet underscores the importance of flexible, interoperable technologies for the future security of digital assets.

Prepared from the source material with AI-assisted editing and checked against the supplied facts.

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