MicroCloud Hologram Inc. (NASDAQ: HOLO) has introduced a quantum key distribution (QKD) technology solution designed to enable Bitcoin's transition to a post-quantum protocol without modifying the cryptocurrency's underlying core protocol. The company's approach addresses a growing concern: sufficiently powerful quantum computers could, in theory, break the elliptic curve cryptography (ECDSA) that currently secures Bitcoin transactions.
How it works
HOLO's solution relies on QKD, which uses the quantum no-cloning theorem to secure key exchange. Any eavesdropping attempt disturbs the quantum state of photons, and communicating parties can detect the intrusion through bit error rate detection. If the error rate exceeds a threshold, communication is terminated. Unlike traditional encryption based on mathematical problems, QKD is not vulnerable to Shor's algorithm or Grover's algorithm, which are the primary quantum threats to current public-key cryptography.
Compatibility with the existing network
A key design goal was avoiding a hard fork or network split. HOLO's solution adds a lightweight quantum key verification plugin at Bitcoin's existing script layer, establishing an independent quantum key distribution channel that works alongside the original ECDSA signature system. Upgraded nodes can simultaneously support quantum key verification and traditional signature verification. Nodes that have not been upgraded continue using the original verification logic. This dual-system approach allows smooth bidirectional communication between nodes at different upgrade stages.
UTXO model adaptation
Bitcoin uses the Unspent Transaction Output (UTXO) model, where each transaction requires verification of the previous transaction's output. HOLO optimized the association mechanism between quantum keys and UTXOs so that transaction signing and key verification execute synchronously. The company states this avoids transaction processing delays that could otherwise cause network congestion.
Node computing power considerations
Bitcoin nodes vary widely in computing power, from home nodes to large mining pools. HOLO's solution uses a collaborative architecture of edge computing and QKD, migrating complex key computation tasks to edge nodes while core nodes handle only key verification and transaction confirmation. The company also optimized the quantum key generation algorithm to simplify computation, enabling low-computing-power nodes to receive and verify quantum keys without hardware upgrades.
Existing asset migration
According to industry technical research data cited by HOLO, approximately 6.9 million bitcoins are stored in addresses where public keys have been fully exposed (such as P2PK and early reused P2PKH addresses). These assets could be vulnerable once quantum computers mature. HOLO's solution includes a quantum encryption migration mechanism that encrypts and encapsulates existing asset addresses using quantum keys to generate quantum-secure addresses. Users can complete asset migration through existing wallet terminals without exposing private keys. The solution supports gradual migration to avoid network congestion.
Company background and investment
MicroCloud Hologram Inc., listed on NASDAQ under HOLO, focuses on holographic technology services including holographic LiDAR solutions, holographic imaging, and holographic digital twin technology. The company reports cash reserves exceeding 390 million USD and plans to invest over 400 million USD in Bitcoin blockchain quantum security development, quantum computing R&D, quantum holography technology, and derivative products in other cutting-edge technology fields.
Bottom line
HOLO's QKD solution is one of several approaches being developed to protect Bitcoin from quantum threats. Its key differentiators are compatibility with the existing network without protocol modification, lightweight deployment for low-computing-power nodes, and a migration path for exposed assets. The company states the architecture can be reused in other blockchain networks such as Ethereum and Solana. Whether the solution gains adoption will depend on community acceptance and the timeline of quantum computing maturation.