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

The Bitcoin community is considering a novel approach to addressing potential quantum computing threats, which involves waiting for an attacker to demonstrate their capabilities before taking action. This 'wait and react' strategy is based on a proposal by BitMEX Research, which outlines a 'canary' system that would trigger a network-wide restriction on older bitcoin wallets only if a quantum-capable attacker proves their capabilities on-chain. The system works 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 arrived and automatically triggering a network-wide freeze. The proposal is designed as an alternative to BIP-361, a controversial proposal that would impose restrictions on a fixed five-year timeline regardless of whether quantum computers are actually capable of attacking Bitcoin's blockchain. Critics have argued that BIP-361 is 'authoritarian and confiscatory' as it undermines Bitcoin's core principle that control rests solely with private key holders. The BitMEX proposal introduces 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 is a bet that cuts against the kind of worst-case scenario Bitcoin's design has always tried to prevent.