New Quantum Proposal Offers Solution for Bitcoin Holders to Prove Control Without Transferring Funds

The issue of quantum computing has always been intertwined with the enigma of Satoshi Nakamoto. Millions of bitcoins, including those attributed to the pseudonymous creator, worth around $84 billion, are at risk of theft due to exposed public keys. A potential solution involves a soft fork that would eventually disallow transactions from legacy addresses, forcing holders to move to quantum-resistant formats. However, this approach poses a dilemma for dormant holders like Satoshi, who would need to publicly reclaim their assets or risk losing them. Dan Robinson from Paradigm has introduced an alternative solution, Provable Address-Control Timestamps (PACTs), which enables holders to timestamp proof of ownership without revealing any information publicly. This method involves generating a random salt and using BIP-322 to create a proof of ownership, which is then timestamped and stored privately. If a soft fork freezes quantum-vulnerable coins, the protocol could include a rescue path that accepts a STARK proof, allowing holders to spend their coins without revealing any sensitive information. While PACTs address a specific gap in BIP-361 and provide a potential solution 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. Ultimately, the success of PACTs depends on the willingness of holders, including Satoshi, to create a commitment, and the implementation of the necessary verification infrastructure.