The main goal of the project is to prepare the blockchain for a scenario the industry calls ‘collect now—decrypt later.’ This refers to a potential threat where attackers are already saving encrypted blockchain data, hoping to decrypt it once sufficiently powerful quantum computers emerge.
Tezos Bets on the Privacy of the Future
Tezos believes that private data will become one of the main targets of quantum attacks. Regular blockchain transactions remain public, but many modern systems use metadata encryption and private proofs to conceal transfer information.
The problem is that current cryptographic algorithms could theoretically be vulnerable to quantum computing. The new TzEL system aims to solve this problem in advance. To do this, the developers have implemented post-quantum protection mechanisms and zk-STARK proofs, which are considered more resilient to such threats.
The Main Problem Was the Size of the Proofs
One of the most challenging technical limitations for a long time was the size of cryptographic proofs.
According to the project whitepaper, quantum-resistant zk-STARK proofs in the TzEL system reach about 300 KB. This is significantly larger than the proof sizes used in most existing privacy-focused blockchain systems.
Because of this, the developers had to separately address the scalability issue. As a foundation, Tezos uses its own Data Availability Layer, which helps process large amounts of data without overloading the main network.
This component is considered one of the key elements of the entire architecture in Tezos.
For Now, It Is Only a Testnet
At this stage, TzEL operates only on the testnet and remains an experimental development. The full transition of Tezos to post-quantum cryptography is still in its early stages.
Nevertheless, the very launch shows how quickly the topic of quantum security is turning from a theoretical discussion into a separate direction for blockchain development.
Just a year ago, such projects were seen as long-term research. Now, major networks are beginning to publicly test real solutions.
The Crypto Industry Accelerates Preparation for ‘Q-Day’
Tezos is not the only project that has become more active in this direction.
In April, Solana developers introduced a test implementation of the post-quantum Falcon signature system. The goal is similar—to minimize network risks when quantum computing appears, without sacrificing blockchain performance.
At the same time, MARA Holdings created a separate fund to finance research in quantum-resistant Bitcoin protection.
Coinbase Research also recently stated that Algorand and Aptos appear to be among the most prepared networks for the transition to new cryptographic standards.
Proof-of-Stake May Be More Vulnerable
At the same time, some researchers believe that POS blockchains may face increased risks.
The main reason is related to the validator model and the digital signature schemes used. If quantum computers can efficiently recover private keys, threats to such networks could be especially serious.
That is why many projects are trying to start the transition in advance, while quantum computing technology remains limited.
When Quantum Computers Become a Real Threat
Estimates within the industry still vary widely. Bernstein analysts believe the crypto market has about three to five years to prepare for new cryptographic standards. In their opinion, this window may be enough for the gradual transition of the largest networks.
However, some industry veterans are much calmer about such forecasts. One of the early members of the cypherpunk movement, Adam Back, recently stated that quantum computers capable of breaking Bitcoin signatures will likely not appear for at least another 20 years.
Despite this, blockchain companies clearly do not want to wait. And Tezos has now become one of the first networks to begin testing full-fledged post-quantum protection for private payments today.
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