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

The Bitcoin community is considering a novel approach to address the potential threat of quantum computing to the network's security. Instead of imposing a pre-emptive freeze on vulnerable coins, the proposal involves waiting for an attacker to demonstrate their capabilities and then reacting accordingly. This 'wait and react' strategy is based on a 'canary' system, which would trigger a network-wide restriction on older bitcoin wallets only if a quantum-capable attacker successfully unlocks a specially designed address. The proposal includes a bounty system to incentivize the first attacker to reveal their capabilities, rather than exploiting the vulnerability for personal gain. However, this approach relies on the assumption that the attacker will prioritize the bounty over the potential profits from stealing coins. The 'canary' system 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 of BIP-361 argue that it undermines Bitcoin's core principle of user control and could lead to the confiscation of coins. The new proposal aims to balance the need for security with the need to protect user rights and prevent unnecessary disruptions to the network. Nevertheless, the approach is not without risks, as it relies on the attacker's behavior and may not prevent a large-scale theft. If the attacker chooses to exploit the vulnerability instead of claiming the bounty, the network could face significant losses.