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Altcoins

Bitcoin Upgrades with Quantum-Ready Security; 18.9M SOL Stopped

Efforts to make major blockchains more resilient against the long-discussed threat of quantum computing have accelerated, even as many Bitcoin users remain skeptical about how soon quantum ri

AnonymousCryptoCompass newsroom
August 31, 2026
7 min read
NEWS
Bitcoin Upgrades with Quantum-Ready Security; 18.9M SOL Stopped
CryptoCompass editorial visual for altcoins coverage.

Efforts to make major blockchains more resilient against the long-discussed threat of quantum computing have accelerated, even as many Bitcoin users remain skeptical about how soon quantum risk becomes practical. This week, two separate threads underscored the direction of travel: experimental defenses for Bitcoin transactions and a new proposal aimed at upgrading Bitcoin’s signature technology.

At the same time, governance decisions and broader market signals continued to shape sentiment across the sector—from Solana’s vote to speed up disinflation to new disclosures and policy debates in the United States. Here are the developments investors and builders should keep on their radar.

Key takeaways

  • StarkWare researcher Avihu Levy tested an experimental quantum-resistant Bitcoin transaction on mainnet, using a scheme designed to protect outputs during the mempool exposure window.
  • Blockstream researchers published a Bitcoin Improvement Proposal (BIP) to incorporate the SHRINCS post-quantum signature scheme, significantly shrinking a large signature structure while still introducing trade-offs.
  • Solana validators approved “Double Disinflation” (SGP-0002), doubling annual disinflation to target 1.5% terminal inflation in about 2.8 years.
  • Polygon disclosed multiple security vulnerabilities fixed via recent hard forks, addressing risks that could have affected its proof-of-stake clients.
  • US consumer advocacy group Public Citizen claims investors are “underwater” by at least $4.7 billion in connection with Donald Trump-linked crypto ventures since 2022, with losses attributed to specific token products.

Experimental quantum protection reaches Bitcoin mainnet

Earlier coverage focused on how quantum capabilities could threaten cryptographic signatures and public-key systems over time. This week’s milestone came from the practical side: StarkWare researcher Avihu Levy tested an experimental quantum-resistant transaction on Bitcoin mainnet designed to reduce risk during a specific vulnerability period.

According to a Cointelegraph report, Levy’s test used “Quantum Safe Bitcoin (QSB)” to protect an output in the brief interval when public keys are exposed in the mempool. The approach combines hash-based one-time signatures with computational search techniques that bind an authorization to a specific transaction. In other words, the system is not merely trying to replace signatures wholesale—it is attempting to manage exposure timing relative to how Bitcoin transactions propagate and are validated.

Onchain data referenced in the same report indicates that StarkWare spent a 10,000-satoshi output protected by the QSB scheme. However, the article also highlighted that the mechanism behaves more like a fallback than a broadly usable production-level solution: each transaction reportedly took hours to complete and cost an estimated $150 to $200.

For investors and system designers, the key takeaway is that “quantum-resistance” in Bitcoin is not arriving as a single upgrade button. Instead, it is emerging as layered experiments that tackle specific threat windows first—before longer-term changes to core cryptography can be rolled out through protocol governance.

A BIP aims to upgrade Bitcoin signatures with SHRINCS

Beyond short-term mitigation strategies, the second story points to the longer roadmap: a proposed change to Bitcoin’s signature scheme intended to improve post-quantum security across all transactions.

As described in a Cointelegraph piece, Blockstream researchers published a Bitcoin Improvement Proposal introducing the SHRINCS signature scheme. The researchers reportedly reduced a large hash-based post-quantum signature “by about 13.23 times.” Even with that improvement, the signature size is still described as at least nine times larger than Bitcoin’s existing signatures, and the proposal includes multiple trade-offs.

The same report quotes Blockstream Research’s Jonas Nick, who called it “the first concrete proposal” for a post-quantum signature designed specifically for Bitcoin. Nick acknowledged that it is “not optimal along every axis,” but argued it could represent a reasonable trade-off among available options.

Why this matters for the Bitcoin ecosystem is straightforward: any post-quantum signature upgrade must be weighed against bandwidth, validation costs, implementation complexity, and compatibility with current constraints. A key question for readers is whether future iterations can close the gap between security goals and performance limitations, or whether staged approaches like Levy’s mempool-window protection will remain the practical near-term path for high-value use cases.

Solana accelerates disinflation via validator vote

While Bitcoin-focused news centered on cryptographic evolution, Solana’s latest governance decision shifted attention to monetary policy. Solana validators approved a proposal to double the network’s annual disinflation rate—aimed at reducing issuance faster without changing the broad disinflation direction.

Cointelegraph reported that participation reached 60.7% of eligible stake, with 67% support and 25.16% voting against (7.84% abstained). The measure—known as SGP-0002 or Double Disinflation—increases Solana’s annual disinflation rate from 15% to 30%.

Under the new schedule, Solana is expected to reach a 1.5% terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous schedule. The proposal is also projected to reduce issuance by 18.9 million SOL over the next six years, according to the report.

The vote arrives amid signs that network usage is continuing to expand. Cointelegraph cited onchain data presented by The Kobeissi Letter showing Solana processed a record 4.2 billion transactions in July, up 13.5% month over month. Transaction counts reportedly rose by roughly 2 billion since December, representing a 91% increase.

For traders and long-term holders, the immediate relevance is that monetary-policy acceleration can alter expectations around supply growth, even if it does not directly determine short-term price. For builders, higher throughput combined with faster disinflation can influence incentive structures and the economics of running apps, validators, and infrastructure.

Security disclosure: Polygon patches vulnerabilities through hard forks

In another infrastructure-related update, Polygon disclosed previously private security issues that could have disrupted its proof-of-stake network. The vulnerabilities were reportedly fixed through two recent hard forks—Austin and Kyoto—deployed privately first and then activated on mainnet before public disclosure.

Cointelegraph reported that the affected components included Polygon’s Bor and Heimdall clients. The disclosure from Polygon Labs’ Validators Support Team indicated risks such as denial-of-service vectors, validator resource exhaustion, and flaws related to checkpoint and milestone processing.

From an investor and validator perspective, disclosures like this matter because they reveal where reliability and operational risk can concentrate—even if the network continues to run. The most useful next step for market participants is to watch whether validator operations, client updates, and monitoring guidance translate into any follow-up performance or incident reporting after these forks.

US policy and consumer scrutiny: Public Citizen alleges $4.7B in losses

Outside technical upgrades, consumer advocacy continues to influence the regulatory and public narrative around crypto. Public Citizen, a nonprofit consumer organization, claims that US President Donald Trump and related digital asset ventures left investors at least an estimated $4.7 billion “underwater” since 2022.

According to a Cointelegraph report, the group’s new filing attributes losses to multiple Trump-linked products: $3.2 billion from the Official Trump (TRUMP) memecoin; at least $1 billion on the World Liberty Financial governance token; $450 million on Trump Media’s digital asset treasury; and $9.3 million on Trump’s NFT trading cards launched in 2022. The article adds that holders of a USD1 stablecoin were reportedly “sitting pretty on $0 losses.”

The report also notes that Trump’s crypto profits are described as one of the factors supporting the continued progress of the CLARITY Act debate, with Democrats reportedly seeking stronger protections intended to prevent elected officials from profiting through cryptocurrency issuances.

Even for readers who are not focused on US election-era politics, this category of claims tends to affect both compliance pressure on token issuers and the willingness of traditional financial institutions to engage with crypto-linked structures.

Looking ahead, quantum-resistance proposals will likely remain a multi-year, iterative process—starting with narrow defensive experiments and moving toward full signature upgrades through governance. Meanwhile, validator-led disinflation votes and security-related hard fork disclosures offer clearer near-term implications for network economics and reliability; those are the areas to watch closely for follow-on data and operational updates.

This article was originally published as Bitcoin Upgrades with Quantum-Ready Security; 18.9M SOL Stopped on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.