Bitcoin has taken a first step to respond to quantum computing threats.

On March 10, local time, blockchain media outlet Cointelegraph reported that BIP-360 formalised Bitcoin's quantum-resistance strategy. It does not, however, mean complete quantum security.

The core of the quantum threat lies not in Bitcoin's SHA-256 hash itself but in public key-based cryptography exposed on the blockchain. In particular, cases where addresses were reused, where the public key is directly revealed such as early pay-to-public-key (P2PK) outputs, and Taproot's key-path spending method could also be exposed to relatively greater risk if practical quantum computers emerge in the future.

Existing Bitcoin addresses expose public keys during transactions, making them vulnerable to quantum computing attacks. BIP-360 is designed to reduce that by introducing a new output type and using hash-based commitments. A limitation is that existing coins are not automatically upgraded, meaning users must move assets themselves to P2MR addresses.

BIP-360 is designed to eliminate exposure of Taproot's key path and introduce P2MR (Pay-to-Merkle-Root) to minimise public key exposure. The intent is to lower the likelihood of quantum computing attacks while keeping smart contract functions. It does not replace existing cryptographic methods such as the Elliptic Curve Digital Signature Algorithm (ECDSA) and Schnorr signatures, so it does not guarantee full quantum resistance.

BIP-360 is also designed to keep existing smart contract functions intact, including multisig, timelocks, conditional payments, inheritance designs and advanced custody structures, by removing Taproot's direct signature path and instead processing all spending only through the script path. That is, it is closer to reducing public key exposure while maintaining script-based flexibility rather than giving up functionality and choosing security.

The market is also focusing on the point that this proposal does not immediately turn Bitcoin into a system of "complete post-quantum security". That is because existing unspent transaction outputs (UTXOs) remain as they are until users move them, and it also does not yet include a sweeping overhaul such as changing ECDSA or Schnorr to a new signature system based on lattices or hashes. Ultimately, true quantum resistance is more likely to be built not by a single proposal but through phased upgrades and ecosystem-wide adoption over the coming years.

If BIP-360 is introduced, wallets, exchanges and custody firms will need to support it, and transaction fees may rise slightly. But this is not a simple technical improvement, it is an important change for Bitcoin's long-term survival. It is unclear when the quantum threat will become reality, but without preparation it is not possible to secure enough time to respond.

Accordingly, future discussions are likely to proceed in the order of enabling the P2MR output type, expanding support by wallets, exchanges and custody firms, and users gradually moving their assets.