New Proposal Offers Satoshi Nakamoto a Way to Prove Bitcoin Control Without Revealing Identity

Concerns surrounding Bitcoin's vulnerability to quantum computing have long been tied to the issue of Satoshi Nakamoto's holdings. Approximately 1.1 million bitcoin, worth around $84 billion and attributed to the pseudonymous creator, are at risk of being stolen by powerful quantum computers due to exposed public keys in old wallets. The straightforward solution is a soft fork that phases out the use of legacy address types, forcing holders to transition to quantum-safe formats before attackers can exploit their private keys. However, this approach poses a challenge for long-dormant holders like Satoshi, who would have to publicly move their assets or risk losing access to them. Dan Robinson, a general partner at Paradigm, has introduced a proposal to circumvent this dilemma through the concept of Provable Address-Control Timestamps, or PACTs. This method involves generating a proof of ownership using a random salt and BIP-322, then timestamping it through OpenTimestamps without revealing any information publicly. If Bitcoin implements a soft fork that freezes vulnerable coins, the protocol could include a rescue path that accepts a zero-knowledge proof, allowing holders to spend their coins without disclosing their address, amount, or timestamp. While PACTs address a gap in the existing BIP-361 proposal by providing a rescue path for wallets derived through BIP-32, they require the adoption of a STARK verification protocol, which would need a separate soft fork and broad community consensus. The verification infrastructure for this protocol does not currently exist in Bitcoin and would necessitate significant development, including multisig wallets, complex scripts, and hardware wallet support. Ultimately, PACTs offer a potential solution to make the debate surrounding BIP-361 less binary, but their effectiveness relies on the cooperation of dormant holders, including Satoshi Nakamoto, who must create the commitment themselves to protect their assets.