Bitcoin Developers Propose 'Wait and React' Strategy to Counter Quantum Threat

The Bitcoin community is considering a novel approach to address the potential threat of quantum computing: instead of imposing a pre-emptive freeze on vulnerable coins, the network would wait for an attacker to demonstrate their capabilities and then react. However, this plan relies on the assumption that the attacker will claim a bounty rather than 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 to provide an alternative to the controversial BIP-361 proposal, which would impose a fixed five-year timeline for phasing out vulnerable addresses. Critics have argued that BIP-361 is overly authoritarian and could result in the confiscation of coins. The new proposal includes a financial incentive, allowing users to contribute to a bounty that would reward the first entity to demonstrate a quantum attack. Additionally, a 'safety window' would make it more difficult for attackers to quietly drain vulnerable wallets, as any coins moved during this period would be frozen retroactively if the canary is triggered. However, this plan is not without risks, as it relies on the attacker's willingness to claim the bounty rather than attempting a large-scale theft. If the plan fails, Bitcoin could be left vulnerable to a catastrophic attack, while also facing criticism for not taking pre-emptive action to prevent it.