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BTQ Launches First BIP 360 Testnet for Quantum-Safe Bitcoin Transactions

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Highlights:

  • BTQ launched the first working BIP 360 testnet to explore quantum-safe BTC transactions.
  • The separate test network lets developers and miners test changes without touching Bitcoin.
  • BIP 360 adds P2MR format to help reduce future quantum-related security risks.

BTQ Technologies, a quantum technology firm, has moved Bitcoin Improvement Proposal 360 (BIP 360) beyond the concept stage and into a live test environment. On Thursday, the company announced the launch of Bitcoin Quantum testnet v0.3.0, describing it as the first functional implementation of BIP 360. The upgrade is running on a separate blockchain, which means it is being tested away from the main Bitcoin network. That is important because developers, miners, and researchers can study it safely without affecting real Bitcoin. The main goal is to see how Bitcoin transactions could be protected in the future if quantum computers become strong enough to break today’s security systems.

BIP 360 Introduces P2MR for Quantum Safety

BIP 360 also introduces a new transaction format called Pay-to-Merkle-Root, or P2MR. This new output type is designed to reduce one of the biggest long-term concerns around Bitcoin’s Taproot system. Taproot helped expand Bitcoin’s functionality and supports tools and networks such as Ark, BitVM, and  Lightning. But BTQ argues that Taproot’s key-path spend can expose public keys on-chain, which could become a weakness if quantum computers eventually grow powerful enough to break current cryptography using Shor’s algorithm. 

BTQ says BIP 360 fixes the problem in a simpler way. It removes one part that could expose public keys and replaces it with a safer method based on the Merkle root. The release also brings several new tools and network changes. BTQ added SegWit v2 outputs, bc1z addresses, Merkle root checks, control block checks, and five Dilithium-based signature functions.

BTQ also changed how the testnet works. Version 0.3.0 now uses one-minute block times, a 5 BTQ block reward, and a halving every 2.1 million blocks. The company also enhanced Dilithium signature support and brought back the SegWit discount to more efficiently manage larger post-quantum signatures.

Olivier Roussy Newton, CEO of BTQ Technologies, described the launch as a major milestone in the company’s release. He said, “BIP 360 represents the Bitcoin community’s most significant step toward quantum resistance and we’ve turned it from a proposal into running code.” 

BTQ Shares Early Testnet Progress and Monetization Plan

BTQ also shared early numbers from the test network. The company said the Bitcoin Quantum testnet already has more than 50 miners and has processed over 100,000 blocks. This shows the network already has some real activity behind it. Because of that, the testnet may be useful for ongoing work on quantum-resistant Bitcoin tools.

The firm is also tying the project to a business plan. The company said it wants to launch a mining pool that would charge a 3% fee. It also plans to keep buying BTQ tokens for its corporate balance sheet. Next, the big thing to watch is whether more developers and miners actually start using the testnet. If more people test BIP 360, it could show the idea works in real conditions. Still, moving from a separate test chain to Bitcoin itself would be much harder and would need wider support.

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