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

The Bitcoin community is exploring a novel approach to mitigate the risks associated with quantum computing, focusing on a 'wait and react' strategy rather than preemptively freezing vulnerable coins. This approach, outlined in a recent proposal by BitMEX Research, involves setting up a canary system that would trigger a network-wide restriction on older bitcoin wallets only if a quantum-capable attacker demonstrates their capabilities on-chain. The system would work by placing a small amount of bitcoin into a special address that can only be unlocked by a quantum-capable attacker, with any spend from that address serving as public proof that the threat has materialized, automatically triggering a network-wide freeze of older wallets. The proposal is designed as an alternative to BIP-361, which would impose restrictions on a fixed five-year timeline, regardless of whether quantum computers are actually capable of attacking Bitcoin's blockchain. A key aspect of the proposal is the introduction of a financial incentive, where users can contribute bitcoin to the address, creating a bounty that rewards the first entity to demonstrate a quantum attack publicly. However, this approach relies on the assumption that the first entity capable of breaking Bitcoin would claim the bounty rather than executing a large-scale theft, which raises concerns about the potential risks and consequences.