Bitcoin News Today: Bitcoin Developers Propose Plan to Protect 25% of Bitcoin from Quantum Threats

A group of experienced Bitcoin developers has proposed a new initiative to safeguard the network against the potential threat posed by quantum computing. Led by Jameson Lopp, Christian Papathanasiou, Ian Smith, Steve Vaile, and Pierre-Luc Dallaire-Demers, the proposal aims to protect Bitcoin held in older address types that could be compromised by future advancements in quantum technology.

The developers highlighted that approximately 25% of all Bitcoin could be at risk if a cryptographically capable quantum computer were to emerge. These assets are held in addresses that have already exposed their public keys, making them vulnerable to sophisticated quantum attacks. The developers emphasized that this is not a distant hypothetical issue but a pressing concern that requires immediate attention and proactive measures.

They warned that a successful quantum attack could have severe consequences beyond just impacting the market value of Bitcoin. It could undermine the trust in the network's ability to function securely, potentially leading to a loss of confidence in the entire system. The developers stressed the importance of taking a defensive position well in advance of any potential attack, stating, “An attack on Bitcoin may not be economically motivated – an attacker may be politically or maliciously motivated and may attempt to destroy value and trust in Bitcoin rather than extract value. There is no way to know in advance how, when, or why an attack may occur. A defensive position must be taken well in advance of any attack.”

To address this threat, the team has outlined a three-phase plan to gradually transition users from quantum-vulnerable addresses to post-quantum secure alternatives. The first phase involves allowing Bitcoin to be sent only to new address types called P2QRH, thereby nudging the network toward quantum resilience. This transition is expected to begin three years after the implementation of BIP-360.

The second phase would invalidate all spends from legacy cryptographic signatures, effectively freezing unupdated addresses after a predetermined block height. According to the developers, this could be roughly five years after phase one begins. The third and final phase would provide a method for users who missed the migration window to recover their legacy funds using zero-knowledge proofs tied to their seed phrases. However, this step is still under research and would be optional.

Jacob Youngman, a Bitcoin commentator, expressed concern that the proposed changes might lead to the confiscation of inactive or legacy-held coins, potentially including those linked to Satoshi Nakamoto. He suggested that the best approach would be to provide users with an opt-in solution that protects them from quantum computers. However, Lopp addressed the criticism, stating that inactive wallets are just as likely to be exploited by malicious quantum actors if no action is taken.