AmericanFortress has launched ZKPoSP, a quantum-resistant scheme for wallet protection, preserving existing address formats and enhancing security.
AmericanFortress has unveiled a new cryptographic scheme known as ZKPoSP, aimed at safeguarding hierarchical deterministic wallets from potential quantum computing threats while maintaining their existing address structures.
The ZKPoSP framework replaces traditional signatures with non-interactive zero-knowledge proofs (NIZK), a method that allows one party to prove knowledge of specific information without disclosing the information itself or requiring multiple interactions with the verifier.
Alongside ZKPoSP, the company introduced QBIP32, designed to produce a signing scalar, a quantum-resistant proof, and a chain code all within a single function call. The developers claim QBIP32 can be utilized across various simple-order elliptic curves, including secp256k1 and Ed25519.
While the theoretical security of this scheme against quantum attacks is based on the durability of hash functions and NIZK proofs, its practical implementation requires network nodes to support the verification of these proofs rather than standard signatures. Currently, this capability is not available on major networks such as Bitcoin, Ethereum, or Solana.
The implementation of these technologies has been accomplished using Rust and RISC Zero, with signature proof generation taking around 12–13 seconds and verification needing about 9–10 milliseconds.
A report from Galaxy indicated that approximately 7 million BTC, valued around $470 billion, are potentially at risk due to exposed public keys on-chain. This concern has spurred various initiatives, including the launch of the PQ1 hardware wallet by Freedom Factory for Ethereum and EVM-compatible networks, which utilizes SPHINCS+C10 and ERC-4337 smart accounts.
Moreover, a consortium of notable firms, including Anchorage Digital, ARK Invest, and BlackRock, has pledged $15 million over three years to advance Bitcoin's long-term security, particularly focusing on post-quantum cryptography. In parallel, Galaxy has initiated a grant program aimed at preparing Bitcoin for quantum threats, with up to $5 million available for developers.
Other organizations are also taking steps towards quantum readiness. The Stellar Development Foundation released a quantum preparedness document, while the Algorand Foundation aims for extensive quantum resilience by 2027. Additionally, Nicolas Consigny from the Ethereum Foundation has proposed a solution called SPHINCS- to secure wallets without necessitating a hard fork.
Earlier this year, AmericanFortress presented a post-quantum signature scheme intended to secure existing crypto assets, including dormant wallets holding 1.1 million BTC from the early days of Bitcoin. Their latest publication emphasizes the importance of hierarchical deterministic wallets and presents ZKPoSP/QBIP32 as a versatile solution applicable across different curves and networks.
