New Proposal Enables Bitcoin Holders to Prove Ownership Without Exposing Themselves to Quantum Computing Risks

The threat of quantum computing to Bitcoin has long been intertwined with the enigma of Satoshi Nakamoto. Millions of bitcoins, including approximately 1.1 million attributed to the cryptocurrency's creator, are at risk due to exposed public keys. A proposed soft fork, or upgrade to the network's rules, could mitigate this by phasing out vulnerable address types over five years, but this would require dormant holders like Satoshi to publicly move their assets or risk losing them. To circumvent this dilemma, Dan Robinson of Paradigm has introduced the concept of Provable Address-Control Timestamps (PACTs), enabling holders to timestamp proof of ownership without revealing their identity until they choose to spend their coins. This involves generating a unique cryptographic commitment and timestamping it on the Bitcoin blockchain via OpenTimestamps, keeping the proof private. If a soft fork freezing quantum-vulnerable coins is implemented, the protocol could include a rescue mechanism allowing holders to submit a zero-knowledge proof to access their funds without exposing their address, amount, or timestamp. While PACTs offer a potential solution for wallets derived through BIP-32, they require the adoption of a STARK verification protocol, necessitating significant infrastructure development and community consensus. Ultimately, PACTs provide a means to balance quantum security with the rights of dormant holders, but their effectiveness hinges on the proactive participation of key holders, including the elusive Satoshi Nakamoto.