What to know:
- BitGo will roll out quantum-protection tools for institutional Bitcoin wallet security.
- New BitGo tools target UTXO risks and reduce public-key exposure before future threats.
- BitGo urges institutions to harden wallet operations ahead of post-quantum standards.
BitGo plans to introduce quantum-protection tools for Bitcoin wallets under its latest security plan. The company said Thursday that the tools will help institutions assess, manage, and reduce quantum-related exposure across UTXO-based Bitcoin wallet operations.
The planned release adds to the company’s multi-signature security architecture. It introduces new features to wallet key exposure, UTXO, and institutional wallet operations. The company said that the update is for operational readiness.
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How BitGo Plans to Protect UTXO-Based Bitcoin Wallets
The tools are tailored for institutions that are ready for a post-quantum future, the company said. BitGo co-founder and CEO Mike Belshe said the firm is investing in the foundation needed for clients.
Belshe said the safest key is one whose public key has never been revealed onchain. The capabilities allow institutions a practical means of understanding and minimizing quantum exposure and maintaining multi-signature security, he added.
Bitcoin security still faces a future threat from quantum computing. Protective cryptographic tools are already available, according to some experts, but the greatest threat may be in failing to use them in time.
UTXOs are individual units of bitcoin stored in a wallet and are known as Unspent Transaction Outputs. The vast majority of Bitcoin wallets work this way, but it can become more complicated with UTXO-based wallets.
BitGo said its tools will include a method that groups and prioritizes UTXOs by address. The company said it has a provisional patent application for that method.
Why BitGo Focuses on Partially Used Bitcoin Funds
The method is designed to minimize security risks associated with partially used funds. These risks may occur when the use of wallets involves exposure of public keys as part of the normal transaction process.
Address types that expose the public key from the beginning are not covered by the patent. The company cited Taproot and Pay-to-Public-Key as examples requiring their own security solutions.
The announcement follows a report from Coinbase’s Independent Advisory Board on Quantum Computing and Blockchain. The board said around 7 million Bitcoin sit in addresses exposed to a future quantum attack.
That does not mean institutions cannot manage the issue until a quantum event occurs, said Belshe. He said the right approach is to reduce exposure now and harden wallet operations before standards change.
BitGo plans to launch the tools in coming weeks. The launch would provide institutions with an opportunity to future-proof their wallet operations to meet future post-quantum standards.
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