New Proposal Enables Bitcoin Holders to Prove Control Without Transferring Funds

Concerns over quantum computing have long plagued Bitcoin, with a significant issue being the potential theft of millions of bitcoin stored in old wallets with exposed public keys. This includes the approximately 1.1 million bitcoin attributed to Satoshi Nakamoto, valued at around $84 billion. One proposed solution is a soft fork that would phase out legacy address types, forcing holders to move to quantum-safe formats. However, this approach poses a problem for long-dormant holders like Satoshi, who would need to publicly reclaim their assets or risk losing access. To address this, Dan Robinson, a general partner at Paradigm, has proposed the concept of Provable Address-Control Timestamps (PACTs), which enables holders to generate a proof of ownership without moving coins. This proof is then timestamped using OpenTimestamps and remains private until the holder needs to spend their assets. If Bitcoin implements 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 redeem their coins without revealing any sensitive information. While PACTs offer a potential solution, they require the adoption of a STARK verification protocol, which would need a separate soft fork and broad community consensus. Furthermore, the protocol can only protect Satoshi if he or the current key holder creates the commitment, and the coins remain vulnerable if no action is taken.