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

The Bitcoin community is considering a novel approach to mitigate the risks associated with quantum computing: instead of proactively freezing vulnerable coins, the network would only take action if a quantum attacker demonstrates their capabilities. This 'wait and react' strategy relies on the assumption that the attacker will claim a bounty rather than exploiting the vulnerability for personal gain. The proposed system involves placing a small amount of bitcoin in a special address that can only be accessed by a quantum-capable attacker, triggering a network-wide freeze of older wallets if the address is compromised. This approach is designed to provide an alternative to a fixed five-year timeline for imposing restrictions on older bitcoin wallets. Critics of the existing proposal, BIP-361, argue that it is overly restrictive and undermines the core principles of Bitcoin. The new proposal includes a financial incentive for users to contribute to a bounty, which would reward the first entity to demonstrate a quantum attack. Additionally, a 'safety window' is introduced to make stealth attacks more difficult, allowing vulnerable coins to be frozen retroactively if the canary is triggered during this period. However, this approach is not without risks, as it relies on the assumption that the first entity capable of breaking Bitcoin's security will claim the bounty rather than attempting a large-scale theft.