BTQ Technologies has successfully implemented the first working version of Bitcoin (BTC) Improvement Proposal 360. The upgrade introduces a quantum-resistant transaction structure on a live Bitcoin Quantum testnet.
The move comes as BTC demand signals show signs of weakening among U.S. investors.
This highlights both long-term security concerns and short-term market uncertainty.
The BIP 360 Update
According to the press release, BIP 360 will add a new transaction type called Pay-to-Merkle-Root. Pay-to-Merkle-Root is a different way of committing transaction data to the chain.
By using this method, public keys do not have to be shown in all possible transaction pathways. Therefore, it adds a layer of protection for public keys against possible future quantum attacks.
BTQ stated in the release that the implementation includes full wallet functionality. Users can now generate, fund, sign, and broadcast transactions directly to the testnet.
Olivier Roussy Newton, CEO of BTQ, stated that he believes the release is a significant milestone. He further stated that BIP 360 has transitioned from being an idea or theory to a functioning piece of code.
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P2MR Compatibility With Bitcoin Scaling Solutions
BTQ stated that P2MR is compatible with several Bitcoin scalability solutions. These include Lightning Network, BitVM, and Ark. In addition, the upgrade removes the Taproot key-path spend mechanism.
This mechanism could expose public keys to future quantum attacks. There are currently over 50 miners validating transactions on the testnet. Since launching the testnet, it has processed over 100,000 blocks.
Adoption Challenges And Governance Issues
BTQ did not depend on the Bitcoin governance process when it launched the testnet. As such, it does not require a consensus by the entire network.
All BTC protocol upgrades require agreement among developers, miners, and users. Therefore, making large-scale changes to the protocol is a slow process.
BTC Quantum is a separate blockchain with its own set of rules. Each user will have to choose to opt-in to the new protocol. They will not receive it automatically.
BIP 360 does not provide complete protection for previous Bitcoin addresses. Older public keys could still be vulnerable to future quantum attacks.
Urgency Against Quantum Threats
Researchers predict that at some point in the near future, quantum computers will be able to break the present encryption systems. Bitcoin uses Elliptic Curve Cryptography (ECC), which is one of the cryptographic methods that researchers believe will be broken by quantum computers.
To address this issue, many are focusing their attention on developing post-quantum cryptography solutions. Other alternatives are being developed to ensure the security of blockchain networks.
While no one knows exactly when a breakthrough will occur with quantum computing, the threat of quantum computing is already motivating active development. This Bitcoin Quantum Testnet provides a working environment to test out these solutions.
Bitcoin Market Signals Suggest a Decline in U.S. Demand
This development comes as BTC market demand shows signs of weakening in the United States. CryptoQuant analyst IT Tech reported that Coinbase Premium for Bitcoin is currently at a negative value for the second time this year. The premium was last positive in late February after it had recovered from previous lows.
At the same time, the premium recovered in late February as BTC’s price began to recover to the $90,000 level. As the premium turns negative, the price approaches the $70,000 level, which may indicate declining demand for the cryptocurrency by U.S. investors.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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