QuFi launches post-quantum verification platform with Bitcoin testnet proof
QuFi introduces external quantum protection layer
QuFi Network has launched a new platform designed to protect digital assets from future quantum computing threats. The system uses post-quantum cryptography to verify transactions before they are settled on existing blockchain networks.
Unlike many other solutions that require changes to the underlying blockchain protocol, QuFi’s approach separates verification from settlement. A decentralized network of nodes validates transactions externally, meaning existing chains like Bitcoin do not need to be altered.
uBTC proof-of-concept runs on Bitcoin Testnet4
Alongside the main platform, QuFi released uBTC, a test project applying this verification system to Bitcoin. It is currently running on Bitcoin Testnet4, which is a testing environment separate from the main Bitcoin network.
The uBTC system verifies Bitcoin collateral and generates cryptographic proofs that govern how value moves between different settlement environments. When users redeem their assets, the final transactions settle as standard Bitcoin transactions.
Key numbers
- Three post-quantum cryptographic standards are used: ML-DSA-65, SLH-DSA, and ML-KEM-1024.
- The test is operating on Bitcoin Testnet4.
Why this approach avoids extra costs
QuFi stated that using an external verification layer helps avoid the high storage, bandwidth, and computing demands that come with adopting larger post-quantum signatures directly on individual blockchains. Post-quantum signatures are generally larger than traditional ones, which can slow down networks and increase fees.
Competing efforts in quantum defense
QuFi’s launch comes as other groups rush to prepare blockchains for quantum threats. In August, StarkWare tested a quantum-resistant Bitcoin transaction on the main network without a fork, but it took hours to compute and cost between $150 and $200.
Meanwhile, banks and regulators in Europe, the Middle East, and Asia joined a pilot testing post-quantum wallets using the ML-DSA-65 standard, one of the same standards QuFi uses. Blockstream researchers also published a proposal called SHRINCS to reduce the size and performance costs of quantum-resistant signatures, though the scheme remains early-stage and requires wallets to track previously used signing keys.
What is still unclear
It is not yet known how widespread adoption of the QuFi platform will be or how it will perform under real-world network conditions compared to other quantum-defense methods.
Why this matters for crypto investors
Quantum computers are expected to eventually break the cryptography that secures most current blockchains. Solutions like QuFi’s offer a way to secure assets without forcing every blockchain to undergo difficult and risky upgrades.
