AmericanFortress, a blockchain startup focused on privacy, has announced a pioneering multi-layer quantum defense system designed to safeguard cryptocurrencies against potential quantum computing threats. This innovative approach, which includes a soft fork mechanism, aims to protect dormant Bitcoin wallets, including those belonging to Bitcoin’s creator, Satoshi Nakamoto.
In a recent discussion with CoinDesk, CEO Michal Pospieszalski revealed that the company’s patent-pending post-quantum signature scheme could secure approximately 6.1 million Bitcoin, valued at around $400 billion, currently held in inactive accounts. The initiative seeks to address vulnerabilities that could be exploited by hackers, who might otherwise seize these funds and destabilize the market.
Pospieszalski emphasized the unique challenges posed by older Bitcoin wallets, specifically those created during the early days of the cryptocurrency. These wallets, known as “Pre-BIP32” addresses, lack the necessary seed phrase derivation for automatic upgrades. To counter this, AmericanFortress plans to implement a defensive freeze via a backward-compatible soft fork, ensuring that these funds remain secure until a community decision is made regarding their future.
“Our quantum-resistant protocol would automatically freeze and protect those funds until governance decides what to do with them after Q-day,” Pospieszalski stated.
He further noted that this method would not only apply to Bitcoin but also to other major blockchains like Ethereum, Solana, and Tron. The announcement follows a successful $8 million seed funding round, co-led by SAVA Digital Asset Fund, Moon Pursuit Capital, and 0G Labs. Alongside the funding, the company published a cryptographic paper addressing performance issues that have hindered previous post-quantum efforts.
In a recent quantum-security test on BNB Chain, while the protocol functioned correctly, it resulted in a significant 40% slowdown in transaction throughput. Unlike traditional methods that necessitate the creation of entirely new blockchains, AmericanFortress employs zero-knowledge (ZK) proofs to validate ownership of master seeds at the point of transaction. This strategy incorporates three solutions: Pre-BIP32 raw key protection, standard BIP32 quantum protection, and a high-speed QBIP32 derivation scheme, all designed to integrate seamlessly with existing systems without causing performance issues.
“It’s just a node and wallet software update in that order,” Pospieszalski explained.
Pospieszalski highlighted the concentrated threat that quantum computing poses to the crypto ecosystem. While quantum computers cannot directly crack master seed phrases, they can reverse-engineer private keys from wallet addresses with exposed public keys. Research indicates that over $600 billion in crypto assets are currently at risk, with all Solana addresses falling into this vulnerable category.
For active users, transitioning to a quantum-proof level can be accomplished in just 50 milliseconds through a simple wallet prompt. For dormant wallets, protective measures can be implemented programmatically at the base layer, making the process efficient and cost-effective.
AmericanFortress is also in the process of licensing its software development kit (SDK) to various Layer 1 and Layer 2 blockchains, with potential for exclusive acquisitions. The company anticipates that its cryptographic solutions for Bitcoin will be ready for broader discussion in the coming weeks, leading up to an official presentation scheduled for June 2 in Paris.
Pospieszalski views this development as a pivotal moment for the future of digital assets, stating, “Sudden quantum proofing of BTC is now possible.”
AmericanFortress has launched a quantum defense system to protect Bitcoin and other cryptocurrencies, including dormant wallets. This innovative approach aims to secure significant assets against potential quantum computing threats, marking a crucial advancement in blockchain security.