Bitcoin advances quantum defenses as Solana validators approve faster disinflation

  • StarkWare and Blockstream advanced separate quantum-resistant Bitcoin protection efforts.
  • Solana validators approved a 30% annual disinflation rate, retaining a 1.5% inflation target.
  • Bitcoin traded at $78,420 as crypto market capitalization reached $2.64 trillion, CoinMarketCap data showed.

Bitcoin developers and researchers advanced two separate efforts to protect the network from future quantum attacks, despite skepticism among some Bitcoiners about the timing of the threat. StarkWare researcher Avihu Levy tested an experimental quantum-resistant transaction on Bitcoin’s mainnet, using the Quantum Safe Bitcoin (QSB) scheme to protect outputs during the short period when public keys are exposed in the mempool (the queue for pending transactions). Onchain data showed StarkWare spent a 10,000-satoshi output under the scheme, which combines hash-based one-time signatures with computational searches binding authorization to a specific transaction. The approach is mainly a last-resort safeguard because transactions take hours and cost $150 to $200. Separately, Blockstream researchers published a Bitcoin Improvement Proposal on August 27 for the SHRINCS signature scheme. The proposal reduces the size of a large hash-based post-quantum signature by about 13.23 times, although the resulting signature remains nine times larger than Bitcoin’s existing signatures and involves trade-offs. Blockstream Research’s Jonas Nick called it “the first concrete proposal for a post-quantum signature scheme designed specifically for Bitcoin” and said it was “not optimal along every axis” but represented “a very good trade-off among the options we have now.” Solana validators approved SGP-0002, or Double Disinflation, with 67% support and participation from 60.7% of eligible stake. The measure doubles annual disinflation from 15% to 30%, reducing issuance by 18.9 million SOL over six years while retaining the 1.5% long-term inflation target. Solana is now expected to reach that rate in about 2.8 years rather than roughly 5.7 years. July transactions reached a record 4.2 billion, up 13.5% from June and about 91% from December. Public Citizen estimated that Donald Trump and his family’s digital-asset ventures left investors at least $4.7 billion underwater since 2022, including $3.2 billion linked to the Official Trump memecoin, at least $1 billion tied to the World Liberty Financial governance token, $450 million from Trump Media’s digital-asset treasury and $9.3 million from Trump’s nonfungible token (NFT) trading cards. USD1 stablecoin holders recorded $0 in losses. Trump’s crypto profits are among the issues Democrats cite in seeking stronger protections as Congress considers the CLARITY Act in September. Bitcoin rose 23% over the week, outperforming most artificial-intelligence infrastructure stocks, while Canaan, American Bitcoin and Cango gained between 41% and 67%. Bitcoin ETFs attracted more than $3.3 billion in August, their strongest month since October 2025’s all-time high, although Friday outflows ended a nine-day inflow streak. Bernstein forecasts Bitcoin will reclaim $125,000 in both its base and bull cases, reaching $300,000 in 2029 in its base case and more than $500,000 in its bullish scenario. Revolut began rolling out its first stablecoin, euro-pegged EURR, to about 2 million customers in Denmark, Poland and Portugal. The Ethereum-based token is issued by Bridge Building S.A., the Luxembourg entity of Stripe-owned Bridge, and is planned to support multiple networks and external-wallet transfers as the rollout expands across the EEA later this year, subject to product, operational and regulatory readiness. At week’s end, Bitcoin traded at $78,420, Ethereum at $2,469 and XRP at $1.38, while total crypto market capitalization stood at $2.64 trillion. CryptoQuant CEO Ki Young Ju said the Bitcoin bear market was over after its Bull/Bear Market Cycle Indicator turned positive for the first time since early October. The indicator moved from -1.244 during extreme-bear conditions on February 5, when BTC/USD fell to $60,000, to 0.042 on August 26, placing it in the bull bracket. Separately, a National Institute on Retirement Security survey found that 77% of Americans considered cryptocurrency in workplace retirement plans risky, including 46% who called it very risky, while 53% opposed employers offering it as an investment option. Real Trump Coins denied authorizing the Trump Digital GOLD token after its promotion was deleted and the token collapsed, blaming third-party bad actors and saying it was working with authorities. Polygon disclosed vulnerabilities in its Bor and Heimdall clients after fixing them through the Austin and Kyoto hard forks. The flaws included denial-of-service risks, validator resource exhaustion and problems affecting checkpoint and milestone processing. Cointelegraph also highlighted coverage of the SHRINCS proposal, a Hugging Face hack involving open-weight Chinese AI models and legal liability when AI agents cause harm. Its editorial team said its journalism is independently edited and reviewed, that some articles contain affiliate links, and that its content is not financial, legal or investment advice.

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