QuFi Network has launched a platform for post-quantum verification aimed at safeguarding digital assets against potential quantum threats, all without the need to alter existing payment networks.
To showcase its solution, the developers utilized the Bitcoin Testnet4.
Verification Separate from the Blockchain
The core concept behind QuFi is to decouple transaction verification from its final execution. The platform employs a network of independent nodes that perform cryptographic verification before transferring funds, subsequently sending a compact proof to the blockchain.
This approach is designed to prevent each blockchain from having to individually handle the increased volumes of data and computations that could arise with the transition to post-quantum cryptography.
Three standards developed under the U.S. National Institute of Standards and Technology initiative are utilized for security: ML-DSA-65 for digital signatures, SLH-DSA as an additional hashed signature scheme, and ML-KEM-1024 for secure key exchange.
QuFi Tested the System on Bitcoin
For practical demonstration, the company created uBTC — a proof-of-concept that verifies the presence of BTC as collateral and generates cryptographic proofs for subsequent value transfers.
The complete cycle of uBTC — issuance, burning, and redemption — operates within Bitcoin Testnet4. Upon redemption, the funds are ultimately sent via a standard Bitcoin transaction that can be independently verified on the network, without requiring any changes to the original cryptocurrency protocol.
This stands in contrast to methods where post-quantum algorithms are directly integrated into the blockchain. The size of some post-quantum signatures can be significantly larger than traditional cryptographic signatures, potentially increasing storage, bandwidth, and computational demands.
Currently Only on Testnet
However, it is premature to claim that Bitcoin has achieved full post-quantum protection. The demonstrated system is operational on a testnet, not the main network. QuFi also plans to extend its solution to EVM networks, Stellar, and Solana.
Simultaneously, the company has launched a Genesis Node program for operators who will support a decentralized verification network. QuFi aims to eventually utilize a single verification layer across multiple blockchains and financial systems.
It is worth noting that in August, StarkWare conducted the first quantum-resistant transaction on the Bitcoin mainnet.