Bitcoin’s New Quantum Defenses, 18.9M SOL Cancelled: Hodler’s Digest
Bitcoin and Solana make progress in quantum defense, Solana validators reduce inflation, and Solana processed record 4.2 billion transactions in July.
Intelligence analysis by Qwen 2.5 (3B)
Bitcoin and Solana are taking steps to defend against quantum attacks, while Solana validators have approved a proposal to reduce inflation.
Bitcoin and Solana are trying to make their money safer from a new kind of computer called a quantum computer. Bitcoin is working on a new way to protect its money, and Solana is changing how much new money is created.
Analysis
StarkWare’s Quantum Safe Bitcoin (QSB) Scheme
StarkWare researcher Avihu Levy tested an experimental quantum-resistant transaction on the Bitcoin mainnet. The scheme combines hash-based one-time signatures with computational searches to bind an authorization to a specific transaction. While effective, it is more of a last resort due to the high cost and time required for each transaction.
Blockstream’s SHRINCS Signature Scheme
Blockstream researchers published a Bitcoin Improvement Proposal to upgrade Bitcoin with the SHRINCS signature scheme. The signature is significantly smaller than existing signatures, but still larger than Bitcoin’s current signatures. The proposal aims to address the quantum threat by providing a practical solution.
Solana Inflation Reduction Proposal
Solana validators have approved a proposal to reduce the annual disinflation rate from 15% to 30%. This will result in a 18.9 million SOL reduction over the next six years, bringing the terminal inflation rate to 1.5% in about 2.8 years. The proposal received strong support, with 60.7% of eligible stake participating and 67% in favor.
Revolut’s Euro Stablecoin
Revolut has launched a euro-pegged stablecoin called EURR, which will be integrated into its retail app and supported on the Ethereum network. The phased rollout is expected to expand to other European Economic Area (EEA) markets later this year.
Key points
- StarkWare tested a new quantum-resistant transaction on the Bitcoin mainnet
- Blockstream proposed a new signature scheme for Bitcoin
- Solana validators approved a proposal to reduce inflation
- Revolut launched a euro-pegged stablecoin called EURR
The new quantum defenses for Bitcoin and Solana could make their money safer and more valuable in the future.
If quantum computers become more powerful, they could break the new defenses and make Bitcoin and Solana less secure.
Market signals
- BTC The new quantum defenses and Solana’s inflation reduction proposal could make Bitcoin and Solana more valuable.
AI-generated analysis of potential market relevance. Not financial advice.
