Bitcoin News Today: Bitcoin Developers Propose Quantum-Resistant Upgrade to Protect 25% of Coins

Bitcoin developers have introduced a groundbreaking proposal aimed at safeguarding the cryptocurrency against potential threats from quantum computers. The proposal, co-authored by Jameson Lopp and other crypto security researchers, suggests freezing coins secured by legacy cryptography, including those in Satoshi Nakamoto’s wallets, to prevent quantum computers from cracking them.

The draft proposal outlines a phased approach to transition Bitcoin to quantum-resistant formats. The first phase involves banning the sending of funds to legacy ECDSA/Schnorr addresses, encouraging users to adopt quantum-resistant formats like P2QRH. This phase is set to begin three years after the implementation of BIP-360. The second phase, which kicks in two years after the first, would make all legacy signatures invalid at the consensus layer, effectively freezing coins in quantum-vulnerable addresses. An optional third phase could introduce a recovery path for stuck coins using zero-knowledge proof of BIP-39 seed possession, which could be implemented as either a hard or soft fork.

The motivation behind this proposal is the unprecedented threat posed by quantum computing to Bitcoin’s cryptographic primitives. Researchers warn that quantum computers capable of breaking Bitcoin’s encryption could emerge as early as 2027, posing a significant risk to the cryptocurrency’s security. A successful quantum attack on Bitcoin could result in substantial economic disruption and damage across the entire ecosystem, potentially impacting the ability of miners to provide network security.

Although Bitcoin’s cryptography has not faced an existential threat thus far, the proposal aims to preemptively address vulnerabilities that could target early wallets. The draft proposal highlights that around 25% of all bitcoin have exposed their public keys, making them susceptible to a “Q-day” style attack. Quantum attackers could compute the private key for known public keys and transfer funds covertly, potentially going undetected for weeks or months.

The proposal is currently in the draft stage and does not yet have a BIP number. However, it represents a significant step towards ensuring Bitcoin’s survival in a quantum future. By implementing these measures, the Bitcoin community aims to protect the cryptocurrency from potential threats and maintain its security and integrity.