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

The Bitcoin community is considering a novel approach to mitigate the risks associated with quantum computing, which could potentially compromise the security of the network. Instead of implementing a fixed timeline for freezing vulnerable coins, the proposed 'canary' system would only trigger a network-wide restriction if a quantum-capable attacker demonstrates their capabilities on-chain. This approach is based on a 'wait and react' strategy, where a small amount of bitcoin is placed in a special address that can only be unlocked by a quantum-capable attacker, serving as public proof of the threat. The proposal also includes a financial incentive, allowing users to contribute to a bounty that would reward the first entity to demonstrate a quantum attack publicly. However, this approach relies on the assumption that the first entity capable of breaking Bitcoin's security would claim the bounty rather than executing a large-scale theft. This assumption has sparked debate, as it goes against the network's design principle of preventing worst-case scenarios. The proposal is seen as an alternative to BIP-361, which would impose a fixed five-year timeline for phasing out vulnerable addresses, potentially resulting in the permanent freezing of unmigrated coins. Critics have argued that this outcome would be 'authoritarian and confiscatory,' undermining Bitcoin's core principle of private key holder control. The 'canary' system aims to reduce the risk of disrupting users prematurely, while introducing a 'safety window' that would make stealth attacks more difficult. However, if the bet fails, Bitcoin risks facing the worst of both worlds – the catastrophe it was trying to prevent, and the realization that a fixed-timeline defense would have stopped it.