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Coinbase Builds Post-Quantum Custody System, Funds Bitcoin’s Crypto Upgrade
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Coinbase Builds Post-Quantum Custody System, Funds Bitcoin’s Crypto Upgrade
Coinbase is preparing for future scenarios where quantum computers may be able to crack Bitcoin’s current cryptography.
America’s biggest crypto exchange said Thursday that while the threat isn’t imminent, hard problems — such as migrating millions of users and coordinating protocol upgrades across decentralized systems — need to be solved.
Quantum computers are still experimental and make mistakes but some in the crypto community have sounded the alarm about hypothetical advancements in the machines that could in the future be able to break Bitcoin’s cryptography.
“There’s a lot of noise about quantum computing right now,” Coinbase said. “Some of it is hype. Some of it is fear. And some of it is real.”
The publicly-listed company added that a large-scale quantum computer capable of breaking current cryptography will eventually be built, and so the work to prepare needs to start now, “not when it’s urgent.”
The gameplan
The exchange added that its Independent Advisory Board on Quantum Computing and Blockchain, formed earlier this year, plans to deliver a post-quantum signing pipeline using secure enclaves and threshold cryptography.
Coinbase said that currently, its key management system protects approximately 99.9% of the assets the company custodies. But within the next year, the company will deliver an automated signing pipeline that will allow quantum-safe custody as soon as blockchains begin adopting post-quantum schemes.
It added that it was bringing together Bitcoin core developers, cryptographers and researchers to discuss post-quantum migration strategy, with plans to continue these regularly.
“Preparing Bitcoin for a post-quantum world is one of the most consequential and complex challenges the protocol has ever faced,” the exchange said.
Coinbase is also a founding member of the new Bitcoin Security Consortium — alongside BlackRock, Fidelity Digital Assets, Block, and others — which donates funds and dedicates engineers to open-source work supporting proposals like BIP-360.
The quantum “threat”
Crypto companies and protocols have been planning for a hypothetical future where quantum computers can break top cryptography ever since Google researchers last year said that improvements in the computers may allow them to be able to break the cryptography protecting major cryptocurrencies in just nine minutes.
Some in the community have called the warnings overblown, but others have already started preparing for a post-quantum future by testing quantum-resistant signatures on live sidechains.
This post Coinbase Builds Post-Quantum Custody System, Funds Bitcoin’s Crypto Upgrade first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.
Bitcoin BIP-361 Draft Puts Quantum Security Back On The Agenda
Reference: GitHub
Bitcoin BIP-361 Draft Puts Quantum Security Back On The Agenda
Bitcoin developers have introduced BIP-361, a draft proposal designed to prepare the network for a future migration away from legacy signature schemes that could become vulnerable in a post-quantum environment.
The proposal, titled “Post Quantum Migration and Legacy Signature Sunset,” was authored by Jameson Lopp and others. It lays out a phased approach for moving Bitcoin users away from older cryptographic signature types and toward quantum-resistant alternatives.
This is not a panic signal. Quantum computers are not suddenly breaking Bitcoin tomorrow. But BIP-361 matters because Bitcoin moves slowly by design, and cryptographic migrations can take years to plan, debate, test, and adopt.
If the network ever needs to retire vulnerable signature schemes, the planning has to start long before the emergency arrives.
TL;DR
- BIP-361 proposes a phased migration away from legacy Bitcoin signatures.
- The goal is to prepare for possible quantum-computing threats.
- The proposal is a draft and has not been scheduled for activation.
Why Quantum Risk Matters For Bitcoin
Bitcoin relies on cryptographic signatures to prove ownership of coins.
Today, that system is secure against known practical attacks. But a sufficiently powerful quantum computer could threaten some widely used public-key cryptography. That is why researchers and developers across the technology sector have been preparing for post-quantum security.
For Bitcoin, the challenge is especially complicated.
A bank can update internal systems. A software company can push patches. Bitcoin is a decentralized network with users, wallets, miners, developers, exchanges, custodians, and old addresses spread across the world.
Changing cryptographic assumptions is not simple.
Coins sit in different address types. Some coins have not moved in years. Some users may no longer have access to their keys. Some wallets may be slow to upgrade. Exchanges and custodians need time to support new formats. Any migration plan has to balance security, usability, and social consensus.
That is why BIP-361 is important even though it is only a draft.
It starts mapping the problem.
What The Proposal Tries To Solve
BIP-361 focuses on a phased sunset for legacy signatures.
The idea is not to suddenly invalidate large parts of Bitcoin. Instead, the proposal looks at how the network might gradually move away from signature schemes that could become risky in a quantum future.
A phased approach matters because Bitcoin cannot afford chaos around address formats and wallet compatibility. Users need time to migrate. Infrastructure providers need time to support new tools. The ecosystem needs clear milestones.
That kind of transition would be one of the most sensitive upgrades Bitcoin has ever considered.
It would involve not just technical safety, but also fairness. What happens to coins in old address types? How long should users have to move? What about dormant wallets? What about coins believed to be lost? At what point does protecting the network outweigh preserving indefinite spendability from legacy formats?
Those are difficult questions.
BIP-361 does not make them easy, but it gives the community a structured starting point.
Bitcoin Is Slow For A Reason
Some people will see the proposal and ask why Bitcoin needs to discuss quantum security now.
The answer is that Bitcoin’s upgrade process is slow because it has to be.
A controversial protocol change can take years to reach consensus, and many never do. That can frustrate developers who want faster progress, but it is also part of why Bitcoin has remained stable. The network avoids rushed changes that could damage trust.
Quantum migration would require even more caution.
It touches the deepest layer of Bitcoin ownership: signatures. A mistake could be catastrophic. A rushed proposal could divide the community. A poorly communicated migration could leave users confused or exposed.
That is why early discussion is healthy.
The proposal does not mean activation is near. It does not mean quantum computers are already a practical threat to Bitcoin. It means some developers believe the community should begin preparing before the pressure becomes urgent.
That is a reasonable position for a system designed to last for decades.
The Market Should Not Overreact
For traders, BIP-361 should not be read as a short-term price event.
Bitcoin is not suddenly insecure because a quantum-migration proposal exists. In fact, the opposite reading may be more useful: serious networks plan for long-term threats before they become immediate crises.
The draft shows that Bitcoin’s developer community is thinking about future-proofing the protocol.
The market should also remember that draft proposals can change, stall, or fail to gain consensus. BIP status does not equal activation. A proposal must be reviewed, debated, implemented, tested, and accepted by a broad set of stakeholders before it becomes part of Bitcoin’s rules.
Still, the topic is worth watching.
Bitcoin’s long-term credibility depends on its ability to handle risks without compromising its core values. Quantum migration may eventually test that ability. The network will need to balance security upgrades with decentralization, user sovereignty, and conservative governance.
BIP-361 puts that conversation back on the table.
Not because Bitcoin is broken, but because Bitcoin is important enough that its hardest problems need to be discussed early.
This article is based on the BIP-361 draft in the Bitcoin BIPs repository.
This article was written by the News Desk and edited by Samuel Rae.
This report is based on information released by GitHub. at GitHub

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NewsBTC
- Vitalik Buterin’s Single Slot Finality Plan Shows Ethereum Still Has A Settlement-Speed Problem To Solve
Vitalik Buterin’s Single Slot Finality Plan Shows Ethereum Still Has A Settlement-Speed Problem To Solve
Vitalik Buterin’s Single Slot Finality Plan Shows Ethereum Still Has A Settlement-Speed Problem To Solve is the kind of crypto story that looks simple at headline level but becomes more useful once you place it inside the wider market backdrop. The story is less about a quick upgrade and more about Ethereum’s long-running effort to reduce the gap between transaction inclusion and final settlement.
The reason it deserves attention today is not that one announcement or filing magically changes the whole market. It is that the update adds another data point to a sector still trying to work out where capital, users, and regulation are actually moving.
For more details, visit the official Vitalik Buterin platform.
TL;DR
- Vitalik Buterin outlined a path toward Ethereum single slot finality.
- The idea is aimed at making Ethereum settlement feel faster and cleaner for users.
- The proposal is technical, but the market implication is simple: Ethereum is still trying to improve the base layer, not just rely on rollups.
Why Ethereum Research Still Matters
Single slot finality would make blocks final far faster than Ethereum’s current model.
The technical challenge is balancing speed with validator requirements, decentralization, and cryptographic safety.
The hard part with Ethereum research is that the practical payoff often arrives long after the first proposal. That does not make the work less important. It means the market has to separate near-term price noise from the slow process of making the protocol easier to use and harder to break.
The Market Impact Will Take Time
The post keeps Ethereum’s base-layer roadmap in focus even as most user activity shifts toward layer-2 networks.
For readers, the useful lens is whether the idea changes the direction of travel. Ethereum is still trying to improve settlement, verification, and scalability at the base layer, even while layer-2 networks take on more everyday activity.
For NewsBTC readers, the practical takeaway is to avoid treating this as an isolated headline. The stronger read is to connect it with the current market environment: liquidity is still selective, regulatory pressure has not disappeared, and the projects that keep shipping useful updates are the ones most likely to hold attention when the cycle gets noisy.
That does not mean the story should be stretched beyond what the source supports. The cleaner approach is to keep the facts tight, explain the mechanism, and show readers why it may matter if follow-up data confirms the same direction over the next few sessions.
In other words, this is a development to watch rather than a guaranteed turning point. Crypto moves quickly, but the useful signals are usually the ones that still make sense after the first reaction fades.
The important thing for readers is context. A single development rarely defines the market on its own, but a series of source-backed updates can show where momentum is building. That is why this article keeps the focus on the specific mechanism in play, the source behind it, and the reason traders or builders may care today.
This article is based on information from vitalik.eth.limo.
This article was written by the News Desk and edited by Samuel Rae.
This report is based on information from Vitalik Buterin. at Vitalik Buterin

Anti-Forensics: How to Encrypt Messages in Any Messenger or Social Network
Welcome back, aspiring cyberwarriors!
Many of us are being pushed toward insecure messengers and social networks. These communication channels may be monitored and are not trustworthy. That does not mean private communication is impossible. Far from it. One of the oldest and most practical problems in cryptography is how to send a secret message through an open channel without making the message obvious to anyone who sees it. And that problem has already been solved very well.
The encrypted text does not always have to look like encrypted text. A message can be hidden in plain sight so that it looks like ordinary content, or it can be embedded inside something else entirely, such as audio, video, or text that does not raise suspicion. That is the realm of steganography. Cryptography protects the meaning. Steganography helps hide the fact that a message exists at all.
For most people, though, the real need is much simpler. They want a practical and convenient way to encrypt messages quickly and reliably. So let’s look at some easy tools that make that possible.
Workflow
The workflow is always the same. First, the sender and recipient agree on a secret password or passphrase. A short sentence made up of several words is often better than a single word because it is easier to remember and usually much stronger. Then the sender pastes the message into the tool, clicks Encrypt, enters the password, and sends the resulting encrypted text through whatever channel they want, even if that channel is insecure. The recipient then uses the same tool and the same password to decrypt the message.
That is the basic pattern, and it stays consistent across different tools and platforms.
Web-Based Encryption Tools
There are browser-based applications that can encrypt text very effectively, and they are often the easiest place to begin. But there is one very important detail. You want to make sure the encryption happens entirely on the client side. That means the message is processed inside your browser, on your own machine, and the password never leaves your device. If the server never sees the key, the risk of leakage is much lower.
That point is worth checking. A good looking website is not automatically secure. One way to verify local processing is to monitor browser traffic using Developer Tools, or DevTools, and see whether your password is being sent over the network. Another way is to use a firewall application such as Little Snitch and observe whether the service tries to communicate with remote servers during encryption or decryption. If the system is truly local, the encrypted message can later be decrypted either through the same browser-based Decrypt form or offline with OpenSSL.
There are a few websites out there.
The first one is Encrypt Online. It uses AES-256-CBC to encrypt text, strings, JSON, YAML and config data directly in your browser. It’s considered to be a strong, mathematically unbreakable encryption algorithm.

Paranoia Text Encryption uses AES-256 in EAX mode with keys derived from passwords using Argon2. That combination is strong and modern.

LOCK.PUB is another browser-based option, focused on creating encrypted online notes, polls, images, audio and a lot more. The content can only be accessed with the correct password.

For users who want something more flexible and technical, GCHQ CyberChef is a powerful open-source option from the UK’s GCHQ intelligence agency. It supports many encryption and encoding operations.

AES Utils is another choice, using AES-256-GCM with PBKDF2 while keeping the interface simple.

Warning
As a contrast, it is useful to look at what should not be considered a proper secure solution. MagicTool encrypts and decrypts text without requiring a password.

At first glance that may sound convenient, but from a cryptographic point of view it means the same built-in secret is used every time. If anyone knows the website and the service’s behavior, they may be able to infer or recover the messages. In that setup, the tool itself is functioning like the secret key simply by existing.
That is not a strong cryptographic model. However, in some situations, “encryption” without a user-provided key could still serve a purpose. For example, it might be used to deceive an adversary into believing you are an inexperienced user who does not know how to encrypt messages properly, when your real objective is to feed them specific information in a controlled manner.
Offline Encryption Software
Browser tools are convenient, but sometimes you want something local, traditional, and fully under your control. Linux, Windows, and macOS all have native or widely trusted applications that can encrypt text and files without relying on a remote browser service.
Common examples include command-line tools such as GnuPG, OpenSSL, and ccrypt, along with password managers, VeraCrypt, Cryptomator, and a wide range of similar utilities. These tools are often used not only for text messages but also for file encryption, container protection, and secure storage.
Offline tools have an advantage because they reduce the number of outside systems involved in the process. You are not dependent on a remote website staying available, and you do not need to trust a third-party server with your content or password. For many users, that is a better model from a privacy perspective. At the same time, it is important to understand that privacy tools still leave traces. On a Windows system, a digital forensics investigator may be able to see installation artifacts, program execution history, registry keys, recent files, shortcut files, jump lists, user activity traces, prefetch data and remnants of encrypted containers or text editors. Even when the content itself remains protected, the fact that you used a particular application may still be visible in the system’s history.
That is why privacy-conscious users often prefer systems that are designed to leave fewer traces by default. A privacy-oriented operating system, live environment, or hardened Linux distribution can be a better choice when your goal is to reduce unnecessary local exposure.
Summary
Encrypting messages is a simple and useful privacy skill. Whether you use a browser-based tool or you prefer offline software the basic principle is the same.
The right tool depends on the situation. Browser-based tools are convenient and fast. Offline tools give you more independence and more control. Some systems are designed for strong cryptography, while others are only suitable for demonstration or deceptive use. Understanding the difference matters.
If you want to go deeper into how privacy can be preserved on real systems and how forensic traces are created and analyzed, our Anti-Forensics training is your next step. We covered advanced techniques for preserving your privacy and understanding what investigators can still see even when you think you have covered your tracks.
The post Anti-Forensics: How to Encrypt Messages in Any Messenger or Social Network first appeared on Hackers Arise.
TRON Nile Testnet Deploys Quantum-Resistant Signature Cryptography
Crypto markets have had plenty to digest today, and this development adds another layer to the picture. TRON Nile Testnet Deploys Quantum-Resistant Signature Cryptography gives Bitcoinist readers a clean angle on Stablecoins at a point where the market is trying to separate durable signals from short-lived noise.
According to the source material reviewed for this report, the story turns on a few concrete details rather than vague sentiment. That matters because crypto headlines can move quickly, but the pieces that tend to last are the ones backed by filings, official releases, data dashboards, or protocol-level records.
TL;DR
- TRON Nile Testnet deployed a post-quantum signature upgrade.
- The testnet deployment aims to secure the ledger against theoretical future decryption risks from quantum computing.
- The upgrade represents a proactive step in Layer 1 security.
A Fresh Signal For The Market
The immediate relevance is that this development fits into one of the market’s main themes for the day: institutional positioning, network usage, regulatory pressure, protocol development, or asset-specific rotation. In this case, the key topic is Stablecoins, which is why it deserves a dedicated read rather than being buried inside a broader market recap.
For traders, the useful part is not simply that the headline exists. It is the way the facts line up with the current market backdrop. When official sources, market data, or protocol records show a fresh shift, readers get a better sense of whether the move is just a one-day reaction or part of something more structural.
The Numbers That Matter
The core source for this story is nileex.io with supporting data from github.com. That source trail is important because the final article should not rely on discovery-only media links or second-hand summaries.
TRON Nile Testnet deployed a post-quantum signature upgrade.
The testnet deployment aims to secure the ledger against theoretical future decryption risks from quantum computing.
The upgrade represents a proactive step in Layer 1 security.
The numerical claims in the pack were tied back to specific source material before writing. No key numbers mentioned.
The Important Caveat
For readers, the practical question is how much weight to give the update. A single source-backed development can be meaningful, but it should be read alongside liquidity, market structure, and any follow-up confirmation from the relevant issuer, protocol, regulator, or data provider. That is especially true in fast-moving crypto markets, where an official data point can be interpreted aggressively on social feeds before the underlying context has fully settled.
The caution is just as important as the headline. Clarify that it is active on the Nile testnet, not the main TRON mainnet.
That means the cleaner read is to treat this as a confirmed development with a defined scope, not as proof of a guaranteed price move or a sweeping market shift. In crypto, the difference matters. A verified data point can strengthen a thesis, but it does not remove execution risk, liquidity risk, regulatory uncertainty, or the possibility that traders fade the initial reaction.
For now, the story gives the market another piece of evidence to weigh. If follow-up filings, dashboard updates, protocol records, or official statements confirm further momentum, the angle can develop into something larger. If not, it still stands as a useful snapshot of where activity is concentrating today.
This report is based on information from nileex.io and github.com.
This article was written by the News Desk and edited by Samuel Rae.
Source: TRON Nile

OMB tells agencies to begin executing PQC transition by 2027

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