Cardano Founder Disputes Bitcoin's Quantum Solution, Claims it Won't Protect Satoshi's Holdings

Cardano's Charles Hoskinson has expressed concerns over Bitcoin's proposed solution to defend against quantum attacks, stating that it is technically incorrect and incapable of protecting the network's oldest coins. He claims that the proposal, BIP-361, is being misrepresented as a soft fork when it would actually require a hard fork, which could invalidate existing signature schemes. Hoskinson argues that this approach cannot recover roughly 1.7 million bitcoin created before 2013, including those associated with Satoshi Nakamoto, due to their reliance on a different key derivation method. The proposal suggests using zero-knowledge proofs tied to BIP-39 seed phrases for recovery, but Hoskinson believes this method is insufficient for the older coins. Bitcoin core developer Jameson Lopp, co-author of BIP-361, has acknowledged the proposal's limitations, describing it as a contingency plan rather than a finalized solution. Hoskinson's critique extends to Bitcoin's lack of formal on-chain governance, which he believes hinders the network's ability to resolve tradeoffs through a structured process.