New Bitcoin Proposal Allows Satoshi Nakamoto to Prove Key Control Without Moving Funds

The issue of quantum computing has long been a concern for Bitcoin, with a significant problem at its core. Millions of bitcoins, including those attributed to Satoshi Nakamoto, are stored in old wallets with exposed public keys, making them potentially vulnerable to theft by powerful quantum computers. The obvious solution is to implement a soft fork that phases out the use of legacy address types, forcing holders to move their funds to quantum-safe formats before attackers can derive their private keys. However, this approach poses a challenge for long-dormant holders like Satoshi, who would need to publicly move their assets or risk losing access to them. A new proposal by Dan Robinson, a general partner at Paradigm, offers a potential solution through the use of Provable Address-Control Timestamps, or PACTs. This approach allows holders to generate a proof of ownership and timestamp it without revealing any information to the public until they need to spend their assets. By using PACTs, holders can create a private proof of ownership and timestamp it, which can be used to rescue their funds if Bitcoin implements a soft fork that freezes quantum-vulnerable coins. The proposal addresses a specific gap in the current freeze proposal and provides a potential rescue path for wallets derived through BIP-32. However, the implementation of PACTs would require significant new infrastructure, including the adoption of a STARK verification protocol, which would need a separate soft fork with broad community consensus. Ultimately, the proposal offers a way to make the debate around the freeze proposal less binary, allowing holders to protect their assets against quantum theft while respecting dormant property rights.