New Bitcoin Proposal Offers Solution for Proving Control Without Moving Funds

The issue of quantum computing has long been a concern for Bitcoin, with a significant problem being the potential theft of millions of bitcoins stored in outdated wallets with exposed public keys. This includes the approximately 1.1 million bitcoins attributed to Satoshi Nakamoto, valued at around $84 billion. A proposed solution involves implementing a soft fork to phase out vulnerable address types and migrate holders to quantum-safe formats. However, this approach poses a challenge for long-dormant holders like Satoshi, who would need to publicly reveal their presence to avoid losing access to their assets. To address this issue, Dan Robinson of Paradigm has proposed the concept of Provable Address-Control Timestamps, or PACTs, which enables holders to generate a proof of ownership without moving their coins. This proof is then timestamped and stored privately, allowing holders to reveal their ownership only when necessary. If Bitcoin implements a soft fork that freezes quantum-vulnerable coins, the protocol could include a rescue path that accepts a zero-knowledge proof, enabling the holder to spend their coins without revealing sensitive information. While PACTs offer a potential solution, they require the adoption of a STARK verification protocol, which would necessitate a separate soft fork and community consensus. Ultimately, the success of PACTs depends on the willingness of holders, including Satoshi, to create and use these proofs.