Tezos Climbs 1.5% After Launching Post-Quantum Privacy Testnet

(P1) The Tezos blockchain has deployed a new post-quantum privacy system called TzEL to its testnet, aiming to shield transactions from future cryptographic attacks. The network's native XTZ token was trading up 1.45% at $0.3809 as of the latest market data.

(P2) "There are Bitcoiners being applauded on stages for half-baked crank theories about quantum mechanics that fly in the face of established physics," Tezos co-founder Arthur Breitman said, criticizing parts of the crypto industry for dismissing the threat.

(P3) The initiative targets the risk of "harvest now, decrypt later" attacks, where malicious actors collect currently secure transaction data with the intent of decrypting it once quantum computers become powerful enough to break modern elliptic curve cryptography. Tezos plans to use quantum-resistant zk-STARK proofs, which are larger than current standards but can be handled by the chain's data availability layer.

(P4) This move comes as some security researchers warn that "Q-Day"—the point where quantum computers can break today's encryption—could arrive as early as 2030. Breitman argued that while there is still time to upgrade, the window is closing, and the main risk is "complacency among developers."

The debate highlights a growing divide in the cryptocurrency space. While some projects, like Tezos, are actively developing and testing post-quantum solutions, others remain focused on more immediate scaling and adoption challenges. Breitman's sharp critique of elements within the Bitcoin community underscores the cultural and technical disagreements on when and how to address the quantum threat.

Tezos's strategy is not limited to private transactions. The project has also begun introducing post-quantum signature support for user accounts as part of a broader network upgrade. "The fact the encrypted memo can be decrypted in the future means there is value in switching early," Breitman noted, emphasizing the long-term data permanence of blockchains.

This article is for informational purposes only and does not constitute investment advice.