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

The Bitcoin community is considering a novel approach to address the potential threat of quantum computing to the network's security. Instead of imposing a pre-emptive freeze on vulnerable coins, the proposal involves waiting for an 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 triggers a network-wide freeze on older wallets. The proposal also includes a bounty system, where users can contribute bitcoin to incentivize the first entity to demonstrate a quantum attack publicly, rather than secretly exploiting vulnerable wallets. However, this approach assumes that the attacker will prioritize claiming the bounty over maximizing their gains through theft, which may not be a reliable assumption. The proposal is seen as an alternative to BIP-361, which would phase out vulnerable addresses over a fixed timeline, potentially resulting in the permanent freezing of unmigrated coins. Critics argue that this outcome would be authoritarian and confiscatory, undermining Bitcoin's core principle of private key holder control. The new proposal aims to mitigate the risk of premature disruption to users while introducing a safety window to make stealth attacks more difficult. Nevertheless, the approach rests on the uncertain bet that the first entity capable of breaking Bitcoin's security will choose to claim the bounty rather than execute a large-scale theft.