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

The Bitcoin community is considering a novel approach to addressing the potential threat of quantum computing to the network's security. Instead of implementing a pre-emptive freeze on vulnerable coins, developers are proposing a 'wait and react' strategy that would only trigger a network-wide restriction if a quantum-capable attacker demonstrates their capabilities on-chain. This approach, outlined in a recent proposal by BitMEX Research, involves placing a small amount of bitcoin in a special address that can only be unlocked by a quantum-capable attacker, thereby serving as public proof of the threat and triggering a network-wide freeze. The proposal also includes a bounty system, where users can contribute bitcoin to the address, rewarding 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 raised concerns, as it goes against the network's design principle of preventing worst-case scenarios. The proposal is designed as an alternative to BIP-361, which would impose a fixed five-year timeline for phasing out vulnerable addresses and invalidating old signature schemes. Critics have argued that BIP-361's approach is 'authoritarian and confiscatory,' undermining Bitcoin's core principle of private key holder control. The new proposal aims to strike a balance between security and user control, but its success hinges on the bet that the first quantum-capable attacker will prioritize the bounty over a potential windfall from theft.