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

Bitcoin developers are considering a novel approach to addressing the potential threat of quantum computing to the network. Rather than imposing a pre-emptive freeze on vulnerable coins, the proposal involves waiting for a quantum-capable attacker to demonstrate their capabilities and then reacting accordingly. This 'wait and react' strategy relies on a 'canary' system, where a small amount of bitcoin is placed in a special address that can only be unlocked by a quantum-capable attacker. If the address is accessed, it serves as public proof that the quantum threat is real, triggering a network-wide freeze of older wallets. The proposal is designed to provide an alternative to a fixed five-year timeline for phasing out vulnerable addresses, which has been criticized for being 'authoritarian and confiscatory'. The canary system also includes a financial incentive, where users can contribute to a bounty that rewards the first entity to demonstrate a quantum attack. However, this approach assumes that the first entity capable of breaking Bitcoin's security will claim the bounty rather than attempting a large-scale theft. This assumption has raised concerns, as it goes against the network's design principle of preventing worst-case scenarios. If the bet fails, Bitcoin may face the worst of both worlds - the catastrophe it was trying to prevent, and the realization that a fixed-timeline defense would have been more effective.