To prevent the threat of quantum computing, BTQ took the lead in deploying the quantum-resistant upgrade proposal BIP 360 on the testnet, attracting over a hundred experts to participate. Although approximately 70 million bitcoins face potential risks, the crisis is not imminent, and widespread implementation will require long-term consensus.
BTQ Testnet Implements BIP 360 Technology
Bitcoin’s quantum defense is moving from whitepaper concepts to actual operational infrastructure.
Canadian blockchain company BTQ Technologies recently announced that they have completed the first full deployment of Bitcoin Improvement Proposal 360 (BIP 360) in version 0.3.0 of the Bitcoin Quantum Testnet.
Although BIP 360 is still in the draft stage within the broader Bitcoin ecosystem and has not yet entered the formal core developer review process, BTQ has proactively turned it into a testable, real-time infrastructure for developers, miners, and researchers to evaluate how quantum-resistant transactions operate in practical environments.
According to BTQ Technologies, more than 50 miners have joined, with over 100,000 blocks mined using the testnet’s proprietary token BTQ. Additionally, an active open-source community has formed, with over 100 cryptographers, developers, and miners participating.
Why Is BIP 360 Important?
To understand the significance of BIP 360, we must look back to the Taproot upgrade activated in 2021.
Taproot is the core foundation of Bitcoin’s scalability roadmap, supporting key innovations such as the Lightning Network, BitVM, and Ark, and is widely regarded as the critical infrastructure for Bitcoin’s next generation of applications. However, Taproot’s key path spend mechanism has a potential risk: it can expose user public keys on-chain.
In a future with sufficiently powerful quantum computers, exposed public keys could be vulnerable to attacks using Shor’s Algorithm. Theoretically, attackers could reverse-engineer private keys from public keys, forge signatures, and steal funds.
BIP 360’s proposed solution is to introduce a new output type called “Pay-to-Merkle-Root” (P2MR). P2MR is a hash tree structure that commits directly to the Merkle root of the script tree, no longer relying on internal keys or tweak operations, effectively cutting off the quantum-vulnerable path while preserving Taproot’s script functionality.
Image source: GitHub BIP 360 P2MR technical explanation
Testnet v0.3.0: From Concept to Practical Infrastructure
According to BTQ’s technical documentation, this implementation of BIP 360 includes complete P2MR consensus rules, using bc1z address format (bech32m encoding) for Segregated Witness version 2 outputs, and integrates Merkle root commitment verification and block validation mechanisms.
Notably, the testnet has enabled all five Dilithium post-quantum signature opcodes within the P2MR tapscript environment.
Dilithium is a post-quantum digital signature algorithm standardized by the U.S. National Institute of Standards and Technology (NIST). Its integration signifies that the testnet now possesses real quantum-resistant signature verification capabilities, not just conceptual demonstration.
In terms of tooling support, this release provides a complete command-line interface (CLI) wallet and full RPC support, allowing users to perform the entire process of creating, funding, signing, broadcasting, and confirming P2MR transactions on the testnet, enabling end-to-end functional validation.
Quantum Threats Are Real but Not Immediate
Currently, industry discussions about quantum threats are polarized: some are optimistic, believing the threat is decades away, while others warn of an impending “Q-Day” doomsday scenario.
Galaxy Digital research director Alex Thorn recently told CoinDesk that, while the quantum threat to Bitcoin does exist, it currently only affects certain exposed wallets and does not pose an immediate threat to overall network security. The risk is real and acknowledged, and those best equipped to address it are actively working on solutions.
- **Further reading:**Debunking the Bitcoin Quantum Threat Doomsday! CoinShares: Only about 10,000 BTC are truly at risk
On the Bitcoin network, only funds with public keys exposed on-chain are vulnerable—common scenarios include address reuse, some custodial services taking shortcuts, or funds stored in older address formats.
Security research firm Project Eleven estimates that about 70 million bitcoins fall into this potential exposure category, but under current publicly known quantum computing capabilities, these funds remain secure.
Even with optimistic estimates, only a very few highly specialized research institutions have the capacity to achieve breakthroughs in quantum computing in the foreseeable future.
Image source: QuoteInspector Galaxy Digital research director Alex Thorn points out that the quantum threat to Bitcoin does exist but currently only affects certain exposed wallets
How Far Can BIP 360 Go?
While BTQ’s testnet deployment is a milestone, making BIP 360 a true protective layer for the Bitcoin network still has a long way to go.
BIP 360 remains a draft proposal; whether it will enter the formal Bitcoin Improvement Proposal review process and gain broad support from miners and core developers will be key indicators of its potential to be implemented.
The Bitcoin community has always been cautious about protocol changes. Taproot itself took years from proposal to activation, and the complexity of cryptographic migrations involved in a quantum-resistant upgrade is even higher. Governance challenges should not be underestimated.
For investors and practitioners, a more pragmatic approach is to continuously monitor BIP 360’s development progress and consensus formation within the community, rather than making premature judgments about the timeline for quantum resistance based solely on testnet deployment.
Further reading:
If Bitcoin is frozen to prevent quantum threats, can it be thawed? BitMEX proposes four recovery plans
