New Bitcoin Proposal Offers a Solution for Proving Control Without Moving Funds

Concerns over quantum computing have long plagued Bitcoin, with a significant problem being the potential theft of millions of bitcoin in old wallets with exposed public keys. This includes the approximately 1.1 million bitcoin attributed to Satoshi Nakamoto, valued at around $84 billion. A proposed solution involves a soft fork that phases out legacy address types, forcing holders to move to quantum-safe formats. However, this would require long-dormant holders, including Satoshi, to publicly move their assets or risk losing access. A new proposal by Dan Robinson of Paradigm introduces Provable Address-Control Timestamps, or PACTs, which enable holders to generate a proof of ownership without spending or revealing any information. This proof is then timestamped and remains private until the holder needs to spend their assets. 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 revealing any sensitive information. This solution addresses a gap in a previous proposal and provides a potential rescue path for wallets derived through BIP-32. However, it requires the adoption of a STARK verification protocol, which would need a separate soft fork and substantial new infrastructure. Ultimately, the proposal offers a way to make the debate over freezing vulnerable addresses less binary, but its effectiveness depends on the cooperation of holders, including Satoshi.