Shares of MicroCloud Hologram Inc. (NASDAQ: HOLO) rose 7.3% on Wednesday after the company released details of a post-quantum cryptography approach it says is designed to secure Bitcoin protocols against potential quantum computing attacks.
The company described the technique as a Strong Designated Verifier Signature scheme constructed from high-order multivariate algebraic equations. MicroCloud characterized the underlying mathematical problem as NP-complete and said quantum algorithms would, at best, deliver a quadratic speedup rather than an exponential one when tackling these equations.
According to the company, the scheme operates using multivariate polynomial equations defined over finite fields. The architecture permits only designated verifiers to confirm the validity of a signature, a property MicroCloud said prevents third parties from deriving useful information from the signature data.
MicroCloud outlined a possible path for adoption in Bitcoin: the scheme could be incorporated through new script opcodes implemented via a soft fork, which would allow users to migrate from existing ECDSA signatures over time rather than requiring an immediate protocol change. The company specifically noted that the signature design is well suited for privacy-enhanced transaction types and for multi-party protocols, naming Lightning Network channel closures as an example use case.
The company provided technical trade-offs at the 128-bit post-quantum security level, stating that signatures produced by the scheme are several times larger than conventional ECDSA signatures. MicroCloud added that such signatures can be compressed so they conform to Bitcoin block space limitations. The public key format, the firm said, comprises dozens of variables and equations, and key sizes can be kept within a range of a few thousand bits.
MicroCloud said it intends to submit the proposal to the Bitcoin Improvement Process and work with the wider Bitcoin community to perform security audits. The company also disclosed its financial position and future spending plans, reporting cash reserves in excess of $390 million and announcing plans to allocate more than $400 million toward Bitcoin blockchain quantum security development, quantum computing research, and quantum holography technology.
In a brief statement on strategic intent, the company said its goal is to become a leading provider of quantum-resistant Bitcoin security blockchain technology.
Context and next steps
MicroCloud's technical description emphasizes a route that balances post-quantum security with practical deployment constraints inside the Bitcoin network, including signature size and gradual migration mechanics. The company has signaled openness to community scrutiny through the formal Bitcoin Improvement Process and independent audits.
Market reaction
The announcement corresponded with a noticeable uptick in MicroCloud's stock price on the day it was disclosed.