New Proposal Enables Bitcoin Holders to Prove Control Without Transferring Funds, Potentially Protecting Satoshi Nakamoto's Assets

Bitcoin has long been plagued by concerns over quantum computing, with a significant problem being the potential theft of millions of bitcoin, including those attributed to Satoshi Nakamoto, worth around $84 billion, if powerful quantum computers become available. The proposed solution involves a soft fork that would phase out legacy address types, forcing holders to move to quantum-safe formats. However, this would require long-dormant holders like Satoshi to publicly reveal their presence, risking their assets. To address this issue, Dan Robinson from Paradigm has proposed a concept called Provable Address-Control Timestamps, or PACTs, which enable holders to generate a proof of ownership without spending from their wallets. This proof can be timestamped and remain private until the owner needs to spend their coins. If Bitcoin activates a soft fork that freezes quantum-vulnerable coins, the protocol could include a rescue path that accepts a zero-knowledge proof, allowing the holder to spend their coins without revealing any information about their address or the original timestamp. This proposal addresses a gap in the existing BIP-361 proposal by including a rescue path for wallets derived through BIP-32. However, it requires Bitcoin to adopt a STARK verification protocol, which would need a separate soft fork with broad community consensus. The verification infrastructure does not currently exist in Bitcoin and would require significant new development, including multisig wallets, complex scripts, and hardware wallet support. Ultimately, the proposal provides a way to make the debate around BIP-361 less binary, offering a potential solution that balances the need to protect against quantum theft with the need to respect dormant property rights.