Bitcoin Developers Propose 'Wait and React' Strategy to Counter Quantum Computing Threats

Bitcoin developers are considering a new approach to addressing the potential threat of quantum computing to the network's security. The proposed 'wait and react' strategy involves waiting for a quantum-capable attacker to demonstrate their capabilities on-chain before implementing a network-wide restriction on older bitcoin wallets. This approach is outlined in a proposal by BitMEX Research, which involves placing a small amount of bitcoin in a special address that can only be unlocked by a quantum-capable attacker. If the attacker unlocks the address, it would serve as public proof that the threat has arrived, triggering a network-wide freeze of older wallets. The proposal is designed as an alternative to BIP-361, which would impose restrictions on a fixed five-year timeline regardless of whether quantum computers are actually capable of attacking Bitcoin's blockchain. The new approach includes a financial incentive, where users can contribute bitcoin to the address to create a bounty that rewards the first entity to demonstrate a quantum attack publicly. However, this approach relies on the assumption that the first entity capable of breaking Bitcoin would claim the bounty rather than executing a large-scale theft. This assumption has raised concerns, as it goes against the worst-case scenario that Bitcoin's design has always tried to prevent. If the assumption fails, Bitcoin risks experiencing the worst of both worlds - the catastrophe it was trying to prevent, and the realization that a fixed-timeline defense would have stopped it.