New Proposal Offers Bitcoin Holders a Way to Prove Control Without Exposing Funds

Concerns surrounding Bitcoin's vulnerability to quantum computing have long been intertwined with the enigma of Satoshi Nakamoto. Millions of bitcoins, including those attributed to the cryptocurrency's creator, are at risk of being stolen by powerful quantum computers due to exposed public keys. The estimated 1.1 million bitcoins linked to Satoshi Nakamoto, valued at around $84 billion, are particularly vulnerable. A proposed solution involves a soft fork that would phase out the use of legacy addresses, forcing holders to migrate to quantum-resistant formats. However, this approach poses a challenge for dormant holders like Satoshi, who would need to publicly reclaim their assets to avoid losing them. Dan Robinson of Paradigm has introduced an alternative solution called Provable Address-Control Timestamps (PACTs), which allows holders to generate a proof of ownership without moving their coins. This proof, combined with a random salt, is then timestamped and committed to the blockchain, remaining private until the holder needs to spend their coins. If Bitcoin implements a soft fork that freezes vulnerable coins, PACTs could provide a rescue path for holders to reclaim their assets, ensuring the privacy of their transactions. The protocol relies on zero-knowledge proofs, which remain secure against quantum computers, and could potentially address gaps in existing proposals. While PACTs offer a promising solution, their implementation depends on the adoption of new infrastructure, including a STARK verification protocol, which would require a separate soft fork and broad community consensus. Ultimately, the success of PACTs hinges on the willingness of holders, including Satoshi, to create and use these proofs, highlighting the ongoing debate surrounding the balance between security and property rights in the Bitcoin community.