StarkWare executes first quantum-resistant Bitcoin transaction

StarkWare completes first Bitcoin transaction resistant to quantum attacks

StarkWare, a company that builds tools for blockchain technology, announced it has successfully executed the first Bitcoin transaction designed to resist attacks from quantum computers. This is a new approach to protect Bitcoin funds from potential future threats posed by quantum computing.

The method adds an extra layer of security to Bitcoin transactions while they wait to be confirmed on the network. This waiting period is a known vulnerability where quantum computers could theoretically steal funds by breaking the encryption used in Bitcoin transactions.

StarkWare's solution, developed by Avihu Levy, head of the company's applications division, prevents the exposure of sensitive data during this vulnerable window.

How the new method works

• The technique, called signature grinding, forces the system to generate millions of possible signatures before selecting one that does not reveal sensitive public key data.
• This process is intentionally slow and can take hours of computing to produce a single transaction.
• The transaction format is unusual, so it had to be sent directly to a miner willing to accept it rather than going through the normal public queue.
• MARA, a Bitcoin mining company, processed the transaction using its Slipstream service.

StarkWare's official statement on the achievement

StarkWare confirmed the successful execution of the quantum-resistant transaction. The company explained that while this method provides protection, it is not a permanent solution. Bitcoin would still need a protocol-level upgrade to be fully safe from quantum computing threats.

Eli Ben-Sasson, CEO of StarkWare, compared the current situation to passengers on the Titanic. He said, "Avihu's breakthrough is important because it gives the psychological reassurance which we need and which the asset itself needs. The important thing is that opportunities are seized. What Avihu has illustrated is that there are lifeboats. That is not a reason to relax. It is a reason to build more of them, and to build them now."

What this means for Bitcoin security

• Confirmed: StarkWare has demonstrated a working method to make Bitcoin transactions resistant to quantum attacks during the vulnerable mempool period.
• Confirmed: The method is currently too slow and unusual for widespread use on the Bitcoin network.
• Confirmed: StarkWare and its leadership view this as a temporary solution while advocating for a permanent protocol upgrade.
• Unclear: When or if Bitcoin will implement a protocol-level upgrade to address quantum computing threats.

Why quantum resistance matters for Bitcoin

Quantum computers, which are still in development, could potentially break the encryption that secures Bitcoin transactions. This would allow attackers to steal funds by forging signatures. While quantum computers powerful enough to do this do not yet exist, the threat is taken seriously in the crypto community.

StarkWare's achievement shows that there are ways to protect Bitcoin from this future threat, even if the current solution is not perfect. It provides a temporary safeguard while the Bitcoin network works on a more permanent fix.

Sources

• The Block