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first_img Ethereum developers propose upgrading the staking contract to defend against quantum attacks

According to CoinDesk, Ethereum researchers have proposed rebuilding the validator deposit contract to support a new cryptographic system and ultimately stop accepting deposits protected by the existing BLS signatures. This proposal targets the deposit contract, aiming to add a switch that prevents the network from accepting the currently relied-upon signature format.Currently, the contract only accepts BLS keys because their exact size is hardcoded, while the new draft allows for different key sizes, with each deposit tagged by the cryptographic system used, where BLS receives a tag of zero, reserving space for future schemes.If the proposal is approved, it will initially operate with BLS deposits, while other schemes can be registered simultaneously. Future decisions may permanently disable new BLS deposits, at which point validators who have staked using BLS keys will not disappear, but new validators will not be able to join using this method. Ethereum will ultimately need to change separately to inform validators how to check new signatures. This is part of the migration for validators, while another part is already in progress—EIP-8141 framework transaction proposals will allow regular Ethereum accounts to change the cryptographic method for approving transactions without changing their address.The urgency stems from research released in March by Google's Quantum AI research department, which outlined five quantum attack paths against Ethereum, putting over $100 billion in assets at potential risk. The Ethereum Foundation is advancing core protocol changes with a target around 2029. Currently, the amount of ETH staked in Ethereum is approximately 42.4 million, valued at about $10.4 billion.

Bitfinex: The recent rise in Bitcoin is mainly driven by spot demand and short covering, with profit-taking potentially being the biggest risk

Bitcoin recently rose to a monthly high, with Bitfinex analysts stating that this round of market activity is primarily driven by spot buying and short covering, rather than new leveraged funds, thus providing a longer duration compared to typical short squeeze scenarios. As investors who bought Bitcoin in the past five months are currently in a profit state, the main risk of the current upward trend comes from profit-taking chips flowing into trading platforms.Bitfinex believes that the U.S. Treasury's announcement on August 19 to expand the scale of long-term bond repurchases is an important factor driving the recent market activity. The initial phase of this rise was indeed driven by short liquidations. On the same day, the U.S. spot Bitcoin ETF recorded an inflow of $297.6 million. However, the subsequent price increase mainly came from spot buying. From the position structure, while Bitcoin prices rose by 10% to 11%, open interest (OI) only increased by about 4%, indicating that spot demand and short covering played a major role, while the impact of leveraged funds was limited.Bitfinex pointed out that the $68,000 to $69,000 range is currently an important support level, close to the average cost of buyers over the past five months. If Bitcoin maintains above this level, it will keep these investors in a profitable state, reducing the pressure of previously trapped chips selling during rebounds. In terms of funds, the U.S. spot Bitcoin ETF saw an inflow of $606.29 million on August 20, the largest single-day inflow since May 1, with BlackRock's IBIT contributing about 82%. Bitfinex stated that if fund inflows continue for a week, it will further strengthen the market demand structure.However, Bitfinex warns that the current biggest risk is a large amount of profitable Bitcoin flowing into trading platforms, which could trigger the largest profit-taking market since 2026. Analysts indicate that if real yields rise again to levels that previously suppressed Bitcoin from falling below $65,000, macro factors could still quickly impact the market.
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