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Bitcoin Braces For Quantum Shock — Inside Two Radical New Rescue Plans

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Bitcoin Braces For Quantum Shock — Inside Two Radical New Rescue Plans

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Multiple devs and founders have been talking publicly about concrete post‑quantum paths for Bitcoin. Two different proposals have caught the crypto world’s attention.

Bitcoin’s Net-Watchers Start Building Their Blackwall

The ticking clock marking 2029 as the possible “deadline” for quantum computers to be able to break Bitcoin and Ethereum’s cryptography has made devs roll up their sleaves and get to work.

The recent spike of the Bitcoin quantum-panic or “quantum FUD” (fear, uncertainty and doubt) has moved on from the initial chaos that ensued following Google’s “doomsday” whitepaper to a race against an enemy that doesn’t yet exist. In the past days, two Bitcoin devs landed at different proposals aimed to protect Bitcoin from the future threat of quantum attacks.

One of them consists in a “Taproot kill‑switch + zk‑proof recovery” path for existing UTXOs (Unspent Transaction Outputs). The other is a QSB (Quantum Safe Bitcoin), a transaction‑level construction that makes individual spends quantum‑safe today without any soft fork (rule changes that stay compatible with old software).

Both approaches assume Shor‑style quantum computers (quantum computers based on Shor’s algorithm) will nuke the math behind Bitcoin’s current signatures (ECDSA/Schnorr), but they differ on how much of Bitcoin needs to change: consensus rules vs user‑level tooling.

Let’s examine both proposals closely.

Solution #1

The first solution comes from Olaoluwa Osuntokun, co‑founder and CTO of Lightning Labs (the main company building the Lightning Network implementation) and Tim Ruffing, co‑author and contributor on Schnorr/Taproot, multisignature schemes like MuSig2 and a maintainer of Bitcoin’s core elliptic‑curve library.

On a post made on the social media X on April 8, Osuntokun resurfaced Ruffing’s July 2025 whitepaper on Bitcoin’s post-quantum security in order to propose a solution for one of the problems presented in the paper: “to create a variant of seed-lifting that doesn’t reveal the wallet’s master secret”. He called this “zk-STARK proof”.

In plain language, Osuntokun’s tool creates a special cryptographic proof (the zk‑STARK) that lets you prove you really have the original wallet secret behind a given Taproot address, and that you used the standard wallet rules to get from that secret to this address. They crucial aspect of the zk-STARK proof is that it does this without ever revealing the secret itself, or any private keys, to anyone.

If, in the future, Bitcoin does a quantum‑defense soft fork that disables normal key‑based spends, many BIP‑86 Taproot wallets could be stuck and unable to move coins. With this proof, those users get an extra “escape hatch”: they can prove ownership of their Taproot coins via the seed‑derivation proof and move funds in a new, quantum‑safe way, even though the old key‑spend path is turned off.

He discussed all the technicalities behind this on the Bitcoin dev mailing list.

The solution has found acceptance, and it’s been generally received very well in the crypto community.

Solution #2

The second, and more polemic solution, comes from Avihu Mordechai Levy, a cryptography engineer at StarkWare who works on zero‑knowledge proofs and STARKs. His whitepaper, published yesterday, shows how to make individual Bitcoin transactions quantum‑safe today, using Lamport‑style one‑time signatures plus a “hash‑to‑signature” proof‑of‑work puzzle, with zero changes to Bitcoin’s base protocol.

QSB replaces the old signature‑size PoW (which quantum attacks could completely break by finding tiny ECDSA r‑values) with a RIPEMD‑160‑based puzzle that only relies on hash pre‑image resistance, which is merely weakened, not destroyed, by Grover’s algorithm (quantum tech).

Again in plain language, what QSB does is it throws away the old “make the signature tiny” proof‑of‑work trick, because a strong quantum computer could cheat that by exploiting the elliptic‑curve math. Instead, QSB uses a new puzzle built on the RIPEMD‑160 hash function. Breaking a hash like that is extremely hard, even with a quantum computer.

QSB fits in legacy script limits and gives around 118‑bit post‑quantum pre‑image security. However, it costs hundreds of dollars in off‑chain GPU work per transaction and requires non‑standard bare scripts mined via private relay services. This is why many are calling QSB a “last resort” or even a “whale-grade band-aid”.

A Philosophical Split

The community is no longer arguing if quantum breaks ECDSA/Schnorr, but how to stage an orderly migration. Let’s remember that the creator of Bitcoin, Satoshi Nakamoto himself, assured in 2010 that a gradual transition to post-quantum, stronger technology, was possible for Bitcoin.

Bitcoin, Satoshi Nakamoto, Quantum Threat

A post from Satoshi Nakamoto regarding the quantum threat for Bitcoin. Source: Bitcoin Magazine on X.

Taproot‑based recovery tries to protect the entire UTXO set with minimal value destruction, whereas some prominent voices still argue non‑migrated coins should simply expire rather than be “rescue” in weird ways, to preserve Bitcoin’s monetary story.

Bitcoin, BTC, BTCUSD

At the moment of writing, BTC trades for the high $71ks on the daily chart. Source: BTCUSD on Tradingview.

Cover image from Perplexity. BTCUSD chart from Tradingview.

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Australia’s Own Impact Analysis Undercuts Landmark Gambling Ad Crackdown as New Zealand Delays Similar Action – iGaming Bitcoin News

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Australia’s Own Impact Analysis Undercuts Landmark Gambling Ad Crackdown as New Zealand Delays Similar Action – iGaming Bitcoin News

Key Takeaways:

  • Australia’s OIA projects ad restrictions will cut gambling spending by AUD 62.7M, or 0.8 percent
  • A full ban the government rejected would have reduced losses by 1.4 percent per year
  • New Zealand’s DIA says it will monitor Australia’s reforms before pursuing similar restrictions

A Sweeping Package That May Not Satisfy Any Stakeholder

The Office of Impact Analysis published its 48-page assessment on April 7, nearly three years after a parliamentary inquiry led by the late Labor MP Peta Murphy recommended a comprehensive ban on online gambling advertising. Prime Minister Anthony Albanese unveiled the government’s alternative – a partial package of restrictions – at the National Press Club on April 2. The measures are set to take effect January 1, 2027.

The OIA report found the government’s preferred option would lower annual gambling expenditure by AUD 62.7 million ($44.3 million), or 0.8 percent of the AUD 32.2 billion Australians lost on legal gambling in 2023-24. A full ban, as Murphy’s committee recommended, would have reduced spending by another 0.6 percent. The OIA acknowledged the full ban carried “a higher net benefit” but said it would impose a heavy financial burden on media organizations and grassroots sport.

Under the new rules, television gambling advertisements will be capped at three per hour between 6 a.m. and 8:30 p.m. and banned entirely during live sports broadcasts in this window. Radio ads will also be prohibited during school drop-off and pick-up periods. Celebrities, athletes and public figures will be barred from appearing in wagering promotions, and gambling branding will be removed from sports venues and player uniforms.

The reforms also introduce a “triple-lock” system for online platforms: gambling ads will be banned by default unless the user is logged in, verified as over 18 and given the option to opt out. The OIA confirmed to Guardian Australia that this rule extends to streaming services, podcasts, social media, app stores and the official websites and apps of the AFL and NRL.

The analysis identified 2,461 industry stakeholders affected across wagering operators, broadcasters, digital platforms and podcasters, with an estimated regulatory cost of AUD 10 million per year — roughly a sixth of the expected reduction in gambling expenditure.

Reaction has been polarized. Responsible Wagering Australia CEO Kai Cantwell described the announcement as “a real kick in the guts for the industry” and warned that the measures set “a dangerous precedent.” On the other end of the spectrum, the Alliance for Gambling Reform’s chief advocate, Tim Costello, called it a “timid response,” arguing the opt-out model places the burden on parents rather than companies.

The Australian Medical Association’s vice president, Julian Rait, said partial bans are insufficient. Independent MP Kate Chaney characterized the package as “tinkering around the edges of meaningful reform.”

In the end, the proposed changes may leave all parties unsatisfied.

The Australian debate is being closely tracked in New Zealand, which shares a deeply intertwined sports broadcasting market and faces its own parliamentary showdown regarding gambling regulation. New Zealand’s Department of Internal Affairs told the NZ Herald on April 8 that it is monitoring Australia’s approach but does not plan to adopt similar advertising restrictions immediately.

The department’s priority remains the Online Casino Gambling Bill, expected to pass in May 2026, which would bring the country’s currently unregulated online casino market under local oversight through a licensing system capped at 15 operators. A DIA spokesperson said the Minister for Racing intends to observe how Australia’s system performs before considering further regulation in the harm minimization area.

New Zealand’s Advertising Standards Authority processed 955 gambling-related complaints in 2025 and is reviewing its code of conduct later this year.

The OIA report drew on prevalence data from the Australian Gambling Research Centre, which found the proportion of Australians at risk of gambling harm rose from 11 percent in 2019 to 15 percent in 2024. Wagering losses have grown from AUD 3 billion (16 percent of total gambling losses) in 2010-11 to AUD 8.4 billion (26 percent) in 2023-24. The social cost of gambling in Victoria alone was estimated at AUD 14.1 billion the year prior.

PM Albanese’s legislation is expected to be introduced to parliament in May.

Revolut Secures key Regulatory Approval in Peru, Moving to Formally Incorporate as a Bank

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Revolut Secures key Regulatory Approval in Peru, Moving to Formally Incorporate as a Bank

Revolut, the global fintech boasting over 70 million customers worldwide, has officially been granted an Organisation Authorisation by the Superintendency of Banking, Insurance and AFP (SBS) of Peru.

The authorisation is a critical step in the company’s banking licensing process within the region. With this major regulatory milestone secured, Revolut is now actively set to become the very first fully digital bank authorised in Peru.

The path to a full operational launch

The newly granted authorisation allows Revolut to formally incorporate as a banking entity in the country. This marks the vital first stage before the company undergoes a mandatory supervisory inspection, which is required to secure the final ‘Functional Authorisation’ needed for a full operational launch.

According to the fintech, the granting of the Organisation Authorisation crystallises a firm commitment to delivering a world-class financial ecosystem to Peru’s dynamic and increasingly digital-first population.

Furthermore, by securing the license, Revolut demonstrates its current operational readiness and the ongoing strength of its local leadership team. This team is specifically tasked with bridging the company’s global technology platform with deep regional expertise to offer highly competitive, transparent, and high-value financial tools to the market.

Solidifying Latin American expansion
Julien Labrot, CEO of Revolut Peru

The move into Peru further solidifies Revolut’s ambitious, broader expansion strategy across Latin America. The country now joins Brazil, Mexico, Colombia, and Argentina as a key growth pillar in the region, supporting the firm’s stated global goal of expanding into 100 markets.

Once the subsequent Functional Authorisation is officially received, Revolut plans to introduce its core banking products and services directly to Peruvian consumers. The company anticipates that its entrance will significantly increase local market competition and actively foster greater financial inclusion across the region’s evolving payment landscape.

Julien Labrot, CEO of Revolut Peru, commented on the significance of the approval.

“Securing our Organisation License is a testament to the efficient regulatory environment in Peru and our team’s dedication to meeting the highest compliance standards,” Labrot stated.

As Revolut moves steadily toward full operational status, the company has confirmed it will continue to scale its local team and infrastructure, working to ensure that its suite of digital-first services is perfectly tailored to the realities of the Peruvian economic landscape.

Quantum-Safe Bitcoin Transactions Need No Protocol Upgrade

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Quantum-Safe Bitcoin Transactions Need No Protocol Upgrade

A Bitcoin researcher has come up with a way that could immediately make Bitcoin transactions quantum-safe without the need for a soft fork. 

In a proposal published Thursday, StarkWare chief product officer Avihu Levy proposed a Quantum Safe Bitcoin (QSB) transaction scheme that he said would remain secure “even against an adversary with a large-scale quantum computer running Shor’s algorithm.” 

He added that the plan requires no changes to the Bitcoin protocol and operates entirely within the existing legacy script constraints. The downside is that it is costly and likely is not useful for everyday transactions, he said. 

The Bitcoin community has been split on how to tackle the quantum problem. QSB presents a temporary solution while a long-term approach is ironed out.

The plan’s main feature is replacing the proof-of-work signature-size puzzle with a hash-to-sig puzzle.

Instead of relying on elliptic curve math that quantum computers can break, the spender must find an input whose hash output randomly happens to resemble a valid ECDSA (elliptic curve digital signature algorithm) signature, requiring brute-force work that even a quantum computer cannot shortcut.

Far more computing power is required for QSB. Source: GitHub

Quantum Safe Bitcoin not practical for everyday use

The proposal comes with caveats. It costs the sender between $75 and $150 per transaction in GPU compute and is more complex than a typical Bitcoin transaction, and thus would only make sense for securing large BTC transactions. 

Related: Bitcoin’s quantum challenges are ‘more social than technical’: Grayscale

“This is huge,” said StarkWare CEO Eli Ben-Sasson, claiming that it essentially makes Bitcoin quantum-safe today. 

Still, Bitcoin ESG specialist Daniel Batten said it was “an overstatement” because exposed public keys and dormant wallets are “not addressed in the paper.”

Batten was referring to an estimated 1.7 million BTC locked in early P2PK addresses that could be cracked by a quantum computer. 

Its existence has led to fierce debate about what to do with the dormant coins, with the community split between leaving Bitcoin as-is to preserve its core ethos, freezing or burning the vulnerable coins entirely or upgrading the protocol to support quantum-safe signatures.

Protocol changes are the preferred solution

The researchers acknowledged that this is a last-resort measure as transactions are non-standard, costs don’t scale to all users and use cases like Lightning Network are not covered.

They concluded that protocol-level changes remain the preferred long-term path.

“While this article describes a solution that works today for quantum-safe Bitcoin transactions, it should be treated as a last-resort measure.” 

Google published a paper in March that unsettled the Bitcoin community as it suggested that a quantum computer could potentially crack Bitcoin’s cryptography using far fewer resources than previously thought.

Meanwhile, Lightning Labs chief technology officer Olaoluwa Osuntokun on Wednesday published a quantum “escape hatch” prototype that enables users to prove Bitcoin wallet ownership from the original seed phrase without revealing it, which could serve as an alternative Bitcoin authorization method.

Magazine: Nobody knows if quantum secure cryptography will even work