Proposing a P2QRH BIP towards a quantum resistant soft fork

In an innovative approach to enhancing Bitcoin's security and scalability, a new Layer 2 (L2) solution known as BitcoinQS has been developed, which operates independently from the traditional Layer 1 (L1) Bitcoin network through a mechanism that doesn't require a soft or hard fork. The core technology behind BitcoinQS includes the utilization of ML-DSA/Dilithium for its cryptographic operations, which signifies a significant leap towards quantum resistance, a feat aimed at safeguarding the platform against potential quantum computer attacks.

The system introduces a seamless bridge that facilitates the conversion between L1 Bitcoin and L2 Quantum Wrapped Bitcoin (BQS) on a one-to-one basis. This bridging ensures that users can securely and efficiently transition their holdings between the two layers without worrying about value discrepancies. Opting for this approach over the Bitcoin Improvement Proposal (BIP) route was strategic, given the prolonged timelines typically associated with BIPs' acceptance and implementation within the Bitcoin ecosystem.

For transactions and address generation in its current testnet phase, BitcoinQS employs SHA3 256 hashing and base58 encoding. However, there are ongoing developments to enhance these processes in preparation for the mainnet launch. A distinctive feature of BitcoinQS is its non-custodial nature, ensuring that users retain full control over their keys. Transactions are signed directly within the user's browser and then broadcasted to validators for confirmation, emphasizing the platform's commitment to security and user autonomy.

The testnet environment currently defines a block size of two transactions, which upon completion, are hashed and recorded on the L1 Bitcoin blockchain using the OP_RETURN operation. This process kicks off with a genesis hash labeled "GENESIS," followed by the transaction hash. Deliberations are still ongoing regarding the optimal block size for the mainnet to balance security concerns with transaction cost efficiency, a decision that hinges on future adoption rates and transaction volumes.

Expanding beyond mere transactional capabilities, BitcoinQS ambitiously plans to support quantum-resistant BRC20 tokens and smart contracts, among other extensions. This open-ended framework invites limitless possibilities for innovation within the Bitcoin ecosystem, potentially revolutionizing how digital assets are secured and managed in the face of advancing quantum computing technologies.

The creator of BitcoinQS has expressed an interest in collaboration, inviting others in the field to reach out via Twitter @bitcoinqs, signaling openness to partnerships that could further enrich the project's offerings and impact. This initiative represents a forward-thinking contribution to the cryptocurrency domain, aiming not only to address current challenges but also to anticipate and mitigate future vulnerabilities.