New Proposal Enables Bitcoin Holders to Prove Control Without Compromising Security

Concerns over quantum computing have long plagued Bitcoin, with a significant portion of the cryptocurrency, including the approximately 1.1 million bitcoin linked to Satoshi Nakamoto, vulnerable to potential theft. A proposed soft fork, BIP-361, aims to address this by phasing out legacy address types over a five-year period, but this would require dormant holders like Satoshi to publicly reclaim their assets or risk losing them. In response, Dan Robinson of Paradigm has introduced the concept of Provable Address-Control Timestamps (PACTs), which enables holders to timestamp proof of ownership without revealing sensitive information. By generating a unique cryptographic commitment and anchoring it to the Bitcoin blockchain via OpenTimestamps, holders can create a private proof of control. If a soft fork freezing quantum-vulnerable coins is implemented, holders can submit a zero-knowledge proof to redeem their assets without disclosing address, amount, or timestamp details. While PACTs offer a potential solution for wallets derived through BIP-32, they require the adoption of a STARK verification protocol, which would necessitate a separate soft fork and substantial infrastructure development. Ultimately, PACTs provide a means to mitigate the trade-off between protecting against quantum theft and respecting dormant property rights, but their effectiveness hinges on the willingness of holders, including Satoshi, to utilize this solution.