New Proposal Offers Bitcoin Holders a Way to Prove Control Over Funds Without Exposing Themselves to Quantum Computing Risks

Concerns over quantum computing have long plagued Bitcoin, with millions of coins in older wallets vulnerable to potential theft. This includes the approximately 1.1 million coins attributed to Bitcoin's creator, Satoshi Nakamoto, valued at around $84 billion. The proposed solution involves a soft fork that phases out legacy address types, but this would require dormant holders like Satoshi to publicly move their funds or risk losing access. A new proposal, Provable Address-Control Timestamps, offers an alternative by allowing holders to timestamp proof of ownership without revealing their identity. This is achieved through a cryptographic commitment using a random salt and a standard for signing messages from a Bitcoin address. The proof is then timestamped and remains private until the holder needs to spend their coins. If a soft fork freezing vulnerable coins is implemented, the protocol could include a rescue path that accepts a zero-knowledge proof, enabling the holder to spend their coins without revealing any sensitive information. This solution addresses a gap in a previous proposal and provides a potential way forward for holders of dormant funds, including those using older wallet types. However, it requires the adoption of a STARK verification protocol, which would need a separate soft fork and broad community consensus. Ultimately, the proposal offers a way to balance the need to protect against quantum theft with the rights of dormant holders, but its success depends on various factors, including the willingness of holders like Satoshi to use it.