Bitcoin embraces post quantum future
Despite considerable skepticism among Bitcoiners about how close the quantum threat to Bitcoin is, two stories this week highlighted the progress being made toward upgrading the blockchain and protecting outputs from attack.
StarkWare researcher Avihu Levy tested an experimental quantum-resistant transaction on the Bitcoin mainnet that protects it during the brief period when public keys are exposed in the mempool.
Onchain data shows that StarkWSare spent a 10,000-satoshi output protected by Levy’s Quantum Safe Bitcoin (QSB) scheme which combines hash-based one-time signatures with computational searches that bind an authorization to a specific transaction. It’s more of a last resort than a practical measure, as each transaction takes hours and costs $150 to $200.
On August 27, Blockstream researchers published a Bitcoin Improvement Proposal to upgrade Bitcoin with the SHRINCS signature scheme. The researchers have slimmed down a huge hash based post quantum signature by about 13.23 times — but it’s still nine times larger than Bitcoin’s existing signatures and comes with a bunch of trade offs.
Blockstream Research’s Jonas Nick called it “the first concrete proposal for a post-quantum signature scheme designed specifically for Bitcoin.” While he said it was “not optimal along every axis” he added:
”I do think it is a very good trade-off among the options we have now,” he said.
Solana validators vote to cut inflation to 1.5% in 2.8 years
Solana validators have approved a proposal to double the network’s annual disinflation rate, reducing issuance by 18.9 million SOL over the next six years.
According to finalized voting results, the proposal received 67% support, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake.
The proposal, known as SGP-0002 or Double Disinflation, increases Solana’s annual disinflation rate from 15% to 30%, while leaving the network’s long-term inflation target of 1.5% unchanged.
Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous schedule.
Transactions on Solana reached record highs in July. Onchain data presented by The Kobeissi Letter showed that Solana processed a record 4.2 billion transactions during the month, up 13.5% from June. Transaction counts have risen by roughly 2 billion since December, representing a 91% increase.
Trump cost investors $4.7B through crypto ‘schemes’: Public Citizen
Nonprofit consumer advocacy organization Public Citizen claims that US President Donald Trump “left investors at least an estimated $4.7 billion underwater” since 2022 through his and his family’s digital asset ventures.
It’s new report states that investors lost $3.2 billion via his memecoin Official Trump (TRUMP) memecoin, at least $1 billion on the World Liberty Financial governance token, $450 million on Trump Media’s digital asset treasury and $9.3 million on the president’s nonfungible token (NFT) trading cards launched in 2022.
Holders of the USD1 stablecoin however were sitting pretty on $0 losses.
Trump’s crypto profits are one of the key factors holding up passage of the CLARITY Act in September, with Democrats digging in on stronger protections to prevent elected officials from profiting by issuing cryptocurrencies.
Bitcoin rally only just getting started
BlocksBridge Consulting reported this week that that Bitcoin’s 23% rally over the past week had outpaced most AI-linked infrastructure stocks.
Three beaten-down Bitcoin mining companies — Canaan, American Bitcoin and Cango — gained between 41% and 67%. By comparison, CoreWeave rose about 21%, Nebius gained 17% and IREN advanced 15%.
The Bitcoin ETFs have minted more than $3.3 billion in August, for the strongest month since October 2025’s all time high. Outflows on Friday ended a nine day hot streak however.
Wall Street analysts from Bernstein predict we are at the start of a new four year cycle. It forecasts Bitcoin will reclaim $125,000 under both its base case and bull case scenario, and will peak at $300,000 in 2029 under the base case but top $500,000 that year under its bullish scenario.
Revolut rolls out euro stablecoin in 3 European markets
Revolut has begun rolling out its first stablecoin, a euro-pegged token called EURR, to around 2 million customers in Denmark, Poland and Portugal.
The phased rollout will expand to other European Economic Area (EEA) markets later this year, subject to product, operational and regulatory readiness.
EURR is issued by Bridge Building S.A., the Luxembourg-based entity of Stripe-owned stablecoin infrastructure company Bridge. Revolut said EURR will be integrated into its retail app, with plans to support multiple blockchain networks and transfers to external wallets. It’s launching on the Ethereum network.
Winners and Losers
At the end of the week,…
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