A New Approach to Quantum Threats: Bitcoin Developers Propose a 'Wait and React' Strategy

The Bitcoin community is considering a novel approach to addressing the potential threat of quantum computing: instead of preemptively freezing vulnerable coins, the network would only take action if a quantum-capable attacker demonstrates their capabilities. 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 would trigger a network-wide freeze of older wallets. This approach is designed to avoid the potential risks associated with a fixed timeline, such as the proposed BIP-361, which has been criticized for being 'authoritarian and confiscatory.' The canary system includes a financial incentive, allowing users to contribute to a bounty that would reward the first entity to demonstrate a quantum attack. However, this approach assumes that the first entity capable of breaking Bitcoin's security would claim the bounty rather than attempting a large-scale theft, which may not be a reliable assumption. If this 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.