MicroCloud Hologram Inc. (NASDAQ: HOLO) announced plans to invest $400 million to develop a quantum-resistant Bitcoin protocol. The Shenzhen-based technology service provider said it will collaborate with academic institutions and the open-source community to create a protocol framework compatible with the existing Bitcoin ecosystem.

The company plans to develop a multi-layered hybrid cryptographic architecture that introduces a parallel validation mechanism for post-quantum signature algorithms alongside traditional signature algorithms. Users would have the option to use both ECDSA and quantum-resistant signature algorithms for dual signing, providing security redundancy before quantum threats emerge.

The protocol will support several post-quantum signature algorithms, including lattice-based signature schemes such as CRYSTALS-Dilithium, hash-based signature schemes like SPHINCS+, and multivariate polynomial-based signature algorithms. MicroCloud Hologram proposes using signature aggregation technology and compression encoding mechanisms to balance security and performance while mitigating blockchain data expansion.

The company plans to extend Bitcoin's script system by introducing new opcodes to support quantum-resistant signature verification. The upgrade path will be designed as a soft fork compatible with legacy nodes, avoiding community division risks associated with hard forks. A new address format will identify quantum-resistant accounts.

MicroCloud Hologram will implement the protocol in phases, starting with a test network to verify performance and security features. The mid-term phase will gradually pilot the hybrid signature mechanism on the main network, encouraging high-value accounts to migrate to quantum-resistant addresses. The final phase involves a comprehensive quantum-resistant upgrade based on community consensus.

The company also plans to introduce a time-lock security mechanism to protect historical assets from future quantum attacks by transferring assets from old addresses to new quantum-resistant addresses with time-lock conditions.

MicroCloud Hologram reported cash reserves exceeding $390 million and stated its goal to become a global leader in quantum-resistant Bitcoin security blockchain technology.