MicroCloud Hologram Inc. (NASDAQ: HOLO) announced the development of a Strong Designated Verifier Signature protocol based on high-order multivariate algebraic equations, designed to protect Bitcoin against quantum computing threats.

The protocol uses the computational difficulty of solving multivariate polynomial equations as its security foundation. These equations contain high-degree terms and are defined over finite fields, creating what the company describes as an NP-complete problem that quantum algorithms can only accelerate quadratically rather than exponentially.

The system allows only designated verifiers to confirm signature validity, as third parties lack the necessary private key information to solve the corresponding equations. The protocol generates shared secrets through public keys without requiring additional interaction between parties.

For Bitcoin implementation, the scheme would allow designated verifier logic to be embedded in transaction outputs, designating specific nodes or wallets as verifiers. The company states this could be integrated through new script opcodes via a soft fork, enabling gradual migration alongside existing ECDSA signatures.

At the 128-bit post-quantum security level, signature sizes are several times larger than traditional ECDSA but can be compressed for Bitcoin's block space constraints. The company reports sub-second signature generation times on standard CPUs.

MicroCloud plans to submit the scheme to the Bitcoin Improvement Process for community security audits. The company stated it holds cash reserves exceeding $390 million and plans to invest over $400 million in Bitcoin blockchain quantum security development, quantum computing research, and related technologies.

The announcement was made through a press release from the Shenzhen-based technology service provider, which focuses on holographic technology and quantum computing development.