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

A recent proposal is sparking debate among Bitcoin developers regarding the network's response to potential quantum computing threats. The idea is to refrain from freezing vulnerable coins unless an attacker demonstrates their capabilities, but this approach relies on the assumption that the attacker will claim a bounty instead of exploiting the vulnerability for personal gain. The proposed 'canary' system involves placing a small amount of bitcoin in a special address that can only be unlocked by a quantum-capable attacker, triggering a network-wide freeze of older wallets if the address is accessed. This approach is designed as an alternative to a fixed five-year timeline for imposing restrictions, which has been met with criticism for being 'authoritarian and confiscatory.' The canary system also includes a financial incentive, where users can contribute to a bounty that rewards the first entity to demonstrate a quantum attack, with the goal of encouraging the attacker to reveal their capabilities rather than exploiting them for malicious purposes. However, this approach rests on the uncertain assumption that the first entity capable of breaking Bitcoin's security would choose to claim the bounty rather than executing a potentially massive theft.