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

The Bitcoin community is considering a new approach to addressing 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. This 'wait and react' strategy is based 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 attacker unlocks the address, it triggers a network-wide freeze on older wallets. The proposal also includes a bounty system, where users can contribute bitcoin to reward the first entity to demonstrate a quantum attack publicly. This approach is seen as an alternative to a fixed five-year timeline for phasing out vulnerable addresses, which has been criticized for being 'authoritarian and confiscatory'. However, the proposal relies on the assumption that the first entity capable of breaking Bitcoin's security will claim the bounty rather than carrying out 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 assumption proves incorrect, Bitcoin may face the worst of both worlds - the catastrophic consequences of a quantum attack and the realization that a fixed-timeline defense would have prevented it.