New Proposal Offers Bitcoin Holders a Secure Way to Prove Ownership Without Exposing Assets

Concerns over quantum computing have long plagued Bitcoin, with a significant portion of the cryptocurrency at risk of being stolen if powerful enough quantum computers are developed. This includes the approximately 1.1 million bitcoin linked to Satoshi Nakamoto, currently valued at around $84 billion, which are stored in outdated wallets with exposed public keys. A proposed solution involves implementing a soft fork that would gradually phase out the use of legacy address types, thereby forcing holders to transfer their assets to quantum-resistant formats before potential attackers can exploit them. However, this approach poses a dilemma for dormant holders like Satoshi, who would be required to publicly reclaim their assets or risk losing access to them. In response, Dan Robinson of Paradigm has introduced a concept called Provable Address-Control Timestamps (PACTs), which enables holders to generate a proof of ownership without having to move their coins. This is achieved by creating a unique cryptographic commitment using a random salt and the BIP-322 standard for signing messages from a Bitcoin address. The commitment is then timestamped and stored privately, allowing holders to submit a zero-knowledge proof if needed, thereby ensuring the security of their assets without compromising their privacy. While PACTs offer a potential solution for safeguarding vulnerable assets, their implementation relies on the adoption of a STARK verification protocol, which would require a separate soft fork and broad community consensus. Furthermore, the success of PACTs hinges on the ability of holders to create a commitment, meaning that if Satoshi is no longer active, his assets will remain at risk.