MicroCloud Hologram Inc. (NASDAQ: HOLO) announced its participation in research and development of a bitcoin quantum-resistant protocol. The technology service provider plans to introduce a post-quantum security protocol system designed to address potential quantum computing threats to blockchain networks.

The company outlined a development plan that includes post-quantum signature mechanism reconstruction, hybrid encryption design, on-chain address system upgrades, and quantum-resistant transaction verification models. The protocol aims to replace current cryptographic algorithms while maintaining compatibility with existing systems.

MicroCloud Hologram stated it will implement a gradual development approach starting with simulation verification in a specialized quantum attack simulation environment. The company plans to establish a quantum-resistant test network to validate new signature algorithms and encryption structures before potential mainnet deployment.

The proposed system would replace the current ECDSA signature algorithm with ML-DSA class algorithms and introduce multi-signature structures. The company also outlined plans for a hybrid encryption protocol that would simultaneously use traditional ECC algorithms and post-quantum cryptography algorithms.

For address systems, MicroCloud Hologram proposed introducing delayed public key exposure mechanisms and one-time addresses to prevent quantum attacks on exposed public keys. The company suggested implementing quantum-safe address formats while allowing gradual asset migration.

The company reported cash reserves exceeding $390 million and plans to invest over $400 million in bitcoin blockchain quantum security, quantum computing technology, and quantum holography technology development. MicroCloud Hologram stated its goal is to become a global leader in quantum-resistant bitcoin security blockchain technology.

The announcement comes as the blockchain industry faces potential future threats from advancing quantum computing capabilities, which could compromise current cryptographic security methods used in bitcoin and other cryptocurrencies.