Lamport Hash Signatures: A Quantum-Safe Upgrade for Bitcoin
BitMEX Research highlights Lamport hash signatures, a 1979 hash-based digital signature scheme that offers quantum-safe protection for Bitcoin. Unlike complex post-quantum proposals (HAWK, SQI, Falcon, CRYSTALS), Lamport hash signatures rely solely on hash functions like SHA-256, maintaining 128-bit security against Grover’s algorithm. Each one-time private/public key pair is 16.3 KB, with 8 KB signatures, limiting reuse but simplifying implementation. Advanced variants (Winternitz, XMSS, SPHINCS+) address key reuse and reduce signature size (down to ~2 KB) using Merkle trees. Lightning Labs’ Olaoluwa Osuntokun discussed SPHINCS+ parameter trade-offs at Presidio Bitcoin. While ECDSA may remain secure for decades, offering hash-based quantum-safe spending options could drive gradual adoption. Institutions holding large BTC may lead due to higher fees, while everyday users can split funds between quantum-safe and ECDSA outputs. Broader uptake of Lamport hash signatures and SPHINCS+ would pave the way for future post-quantum upgrades, guided by user choice.
Neutral
The article outlines a technical proposal for post-quantum security in Bitcoin through hash-based schemes like Lamport signatures and SPHINCS+. Since these proposals address long-term network resilience rather than near-term functionality or regulatory changes, traders are unlikely to adjust positions based on this development. Historical parallels include discussions around Schnorr signatures and Taproot activation, which involved community consensus and gradual adoption with limited immediate price impact. Similarly, moving to quantum-safe signatures would require protocol upgrades, wallet support, and block weight changes, likely unfolding over years. Therefore, this news is neutral for short-term market volatility and long-term network security planning, with negligible effects on trading volumes or price trends in absence of clear implementation timelines.