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

Bitcoin developers are considering a novel approach to address the looming threat of quantum computing: instead of imposing a pre-emptive freeze on vulnerable coins, they propose to wait for an attacker to demonstrate their capabilities and then react. This 'wait and react' strategy relies 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, triggering a network-wide freeze on older wallets. The proposal includes a financial incentive, allowing users to contribute to a bounty that rewards the first entity to publicly demonstrate a quantum attack, rather than attempting to steal vulnerable coins. Critics argue that this approach assumes the attacker will prioritize the bounty over the potential for massive theft, which may not be a reliable assumption. The proposal is an alternative to the controversial BIP-361, which would impose a fixed five-year timeline for phasing out vulnerable addresses, potentially resulting in the permanent freezing of unmigrated coins. The 'wait and react' strategy aims to reduce the risk of disrupting users prematurely, but it rests on the bet that the first entity capable of breaking Bitcoin's security will choose to claim the bounty rather than execute a potentially catastrophic attack.