Today, losing your hardware wallet is fine.
Your recovery phrase gets you back in. In a post-quantum signing setup, the device also holds state: a running count of how many times it has signed. That state matters for security.
SHRINCS is designed so that if the device is lost, the recovery phrase loads into a new one and falls back to a path that needs no state at all.
The fallback needs no state, so a lost device is never a lost wallet. More expensive to spend from, but always accessible. Blockstream Research Director Jonas Nick on building a post-quantum scheme that stays safe even when hardware fails:


Blockstream
OP_CHECKSHRINCS: A Hash-Based Signature Opcode for Post-Quantum Bitcoin
OP_CHECKSHRINCS is a proposed Bitcoin opcode for post-quantum signatures whose security rests on SHA-256, the hash function Bitcoin already uses.





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