AmericanFortress, a blockchain security company based in Wyoming, has introduced a system designed to protect Bitcoin and other cryptocurrency wallets from potential quantum computing attacks. The method, named Zero-Knowledge Proof of Seed Provenance (ZKPoSP), is aimed at ensuring digital asset security in a future where quantum computers could threaten today’s cryptography.
New approach for crypto wallet security
The ZKPoSP protocol allows wallet owners to prove control over their wallet’s seed phrase through zero-knowledge proofs, without revealing the phrase itself. This addresses previous concerns that users would have to transfer funds to new addresses to maintain security.
The research appears in the paper “ZKPoSP: Post-Quantum Zero-Knowledge Proofs for Hierarchical Deterministic Wallets,” focusing on wallets using industry standards like BIP32, BIP44, and SLIP-10. AmericanFortress claims the system maintains compatibility with existing wallet addresses, meaning users would not be forced to migrate their funds in the event of an upgrade.
“Our approach lets users stay on their original addresses and prove wallet control, even if private keys are compromised,” the researchers stated in their findings.
For wallets designed with BIP32, BIP44, or SLIP-10 standards, ZKPoSP would allow owners to securely demonstrate control over their assets through zero-knowledge proofs instead of relying on classical digital signatures.
The proposal also includes QBIP32, a new key derivation protocol that works across multiple elliptic curves. A prototype built in Rust with RISC Zero’s zero-knowledge virtual machine showed that proof generation required about 12 to 13 seconds, while verification finished in around 9 to 10 milliseconds.
Mini dictionary: AmericanFortress is a cybersecurity firm focused on developing blockchain security solutions, especially in post-quantum cryptography, to address emerging threats to cryptocurrency assets.
Quantum computing’s threat to digital assets
Researchers noted that advances in quantum hardware, including Google’s Willow processor, are accelerating the timeline for quantum risks. Quantum computers may eventually leverage Shor’s algorithm to derive private keys from public keys, making current encryption vulnerable.
When Bitcoin or other crypto assets are spent, the public key becomes visible on the blockchain. With a sufficiently powerful quantum computer, malicious actors could potentially reconstruct the corresponding private key and transfer funds illicitly.
Blockchain analytics firm Glassnode reported in May that around 6.04 million Bitcoin, or nearly 30% of all Bitcoin, now have exposed public keys, highlighting the scale of the issue.
| Metric | Amount |
|---|---|
| Total Bitcoin with exposed public keys | 6.04 million |
| Proportion of total Bitcoin supply | 30% |
Growing efforts for post-quantum solutions
Other industry initiatives have also addressed the looming quantum threat. Project Eleven has proposed a method enabling users to prove wallet ownership with a seed phrase after so-called Q-Day, the point at which quantum computers can break today’s encryption. In March, BTQ Technologies tested the BIP-360 standard on a Bitcoin quantum testnet to trial quantum-resistant transaction formats.
US federal agencies have become involved as well, with the Department of Commerce committing over $2 billion to quantum computing firms and related manufacturing programs. Last week, several major firms established the Bitcoin Security Consortium, a group funding Bitcoin network security research. Members include BlackRock, Coinbase, Strategy, Fidelity Digital Assets, and Galaxy, and the consortium has committed $15 million over the next three years—with quantum protection as a core focus.
Mini dictionary: The Bitcoin Security Consortium is a recently formed industry group made up of leading financial and digital asset companies, dedicated to enhancing the security of the Bitcoin ecosystem, especially in the face of post-quantum threats.
ZKPoSP remains an academic proposal at this time. Adoption by major blockchain networks would require broad support from wallet providers, developers, exchanges, and miners.
