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

A recent proposal by BitMEX Research has sparked debate among Bitcoin developers regarding the network's response to potential quantum computing threats. The proposed 'canary' system would involve 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 threat is realized. This approach is designed as an alternative to BIP-361, which would impose restrictions on a fixed five-year timeline regardless of whether quantum computers pose an actual threat. The 'canary' system includes a bounty for the first entity to demonstrate a quantum attack, which would be funded by user contributions. 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. Critics argue that this assumption is risky, as it goes against the network's design principle of preventing worst-case scenarios. The proposal also introduces a 'safety window' to make stealth attacks more difficult, during which vulnerable coins could still be moved but the recipient would be unable to spend them for an extended period. If the 'canary' is triggered during this window, the coins would be frozen retroactively, increasing the risk for any attacker attempting to quietly extract funds. The success of this proposal hinges on the bet that the first entity capable of breaking Bitcoin would prioritize claiming the bounty over executing a catastrophic attack.