Charles Hoskinson Criticizes Bitcoin's Quantum Solution as Insufficient

Cardano's founder, Charles Hoskinson, has expressed concerns over Bitcoin's proposed defense against quantum computer attacks, stating that the solution, BIP-361, is fundamentally flawed and cannot safeguard the network's earliest coins, including those attributed to Satoshi Nakamoto. Hoskinson's critique centers on the claim that BIP-361, which aims to phase out quantum-vulnerable addresses, is incorrectly labeled as a soft fork when it would, in fact, require a hard fork due to its impact on existing signature schemes. The distinction between a soft fork and a hard fork is significant, as the former tightens rules without invalidating old software, while the latter changes the rules so drastically that old software ceases to function, potentially splitting the network unless all users upgrade. Hoskinson argues that the proposed solution, which involves constructing a zero-knowledge proof tied to a BIP-39 seed phrase to reclaim frozen funds, is ineffective for approximately 1.7 million bitcoin that predate the introduction of BIP-39 in 2013. These early coins, including about 1 million associated with Satoshi's mining activities, were generated using a different key derivation method and thus cannot be recovered through the proposed method. Jameson Lopp, a core developer involved in BIP-361, has acknowledged the proposal's limitations, describing it as a contingency plan rather than a finalized specification. Hoskinson's criticism extends to Bitcoin's lack of formal on-chain governance, which he believes hinders the network's ability to resolve upgrade tradeoffs through a structured process, instead relying on developer negotiations and social pressure.