Bitcoin Developers Propose Alternative Plan to Counter Quantum Computing Threats

The Bitcoin community is exploring a novel approach to address the potential threat of quantum computing to the network's security. Instead of implementing a pre-scheduled freeze on vulnerable coins, developers are considering a 'wait and react' strategy that relies on a canary system to detect and respond to quantum attacks. This approach, proposed by BitMEX Research, 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 threat is proven. The proposal includes a bounty system, where users can contribute bitcoin to incentivize the first entity to demonstrate a quantum attack, rather than exploiting it for personal gain. However, this approach assumes that the attacker will claim the bounty instead of maximizing their profit through theft, which may not be a reliable assumption. The proposal is designed to provide an alternative to BIP-361, a controversial plan that would impose a fixed five-year timeline for phasing out vulnerable addresses, which has been criticized for being 'authoritarian and confiscatory.' The new proposal aims to balance the need to protect the network from quantum threats with the need to preserve the core principles of Bitcoin, including the control of private key holders.