Bitcoin Advances Quantum-Resistant Technology
Two significant developments this week marked progress toward protecting Bitcoin from potential quantum computing threats. StarkWare researcher Avihu Levy conducted an experimental quantum-resistant transaction on the Bitcoin mainnet, testing a scheme called Quantum Safe Bitcoin (QSB) that protects outputs during the period when public keys are exposed in the mempool.
The QSB scheme combines hash-based one-time signatures with computational searches to bind authorization to specific transactions. However, the approach remains impractical for routine use, with each transaction requiring hours to process and costing $150 to $200.
On August 27, Blockstream researchers published a Bitcoin Improvement Proposal introducing the SHRINCS signature scheme. The researchers reduced the size of a hash-based post-quantum signature by approximately 13.23 times, though it remains nine times larger than Bitcoin's existing signatures and involves additional trade-offs. Blockstream Research's Jonas Nick described it as "the first concrete proposal for a post-quantum signature scheme designed specifically for Bitcoin," calling it "a very good trade-off among the options we have now."
Solana Validators Accelerate Network Disinflation
Solana validators approved a proposal to double the network's annual disinflation rate, reducing total token issuance by 18.9 million SOL over the next six years. The proposal received 67% support among voters, with 25.16% voting against and 7.84% abstaining, representing 60.7% participation of eligible stake.
The change increases Solana's annual disinflation rate from 15% to 30% while maintaining the network's long-term inflation target of 1.5%. Under the new schedule, Solana will reach its 1.5% terminal inflation rate in approximately 2.8 years, compared with the previous timeline of roughly 5.7 years.
Solana processed a record 4.2 billion transactions in July, up 13.5% from June, with transaction counts rising approximately 2 billion since December.
Market Developments and Regulatory Concerns
Bitcoin traded at $78,420, up 1.1% for the week, while Ethereum rose 0.6% to $2,469 and XRP declined 8.7% to $1.38. The total cryptocurrency market capitalization reached $2.64 trillion.
Public Citizen released a report claiming that U.S. President Donald Trump and his family's digital asset ventures left investors at least $4.7 billion in losses since 2022, including $3.2 billion from the Official Trump memecoin, at least $1 billion from the World Liberty Financial governance token, and $450 million from Trump Media's digital asset treasury.
Revolut began rolling out its euro-pegged stablecoin EURR to approximately 2 million customers in Denmark, Poland and Portugal. The token is issued by Bridge Building S.A., a Luxembourg-based entity owned by Stripe, and will launch on the Ethereum network with plans to support multiple blockchains.
Security and Regulatory Updates
Polygon disclosed security vulnerabilities in its proof-of-stake network that were fixed through recent hard forks. The vulnerabilities affected Polygon's Bor and Heimdall clients and included denial-of-service risks and validator resource exhaustion issues.
A survey from The National Institute on Retirement Security found that 77% of Americans view cryptocurrency in workplace retirement plans as risky, with 53% opposing employers offering crypto as an investment option.
