New Quantum Proposal Offers Solution for Bitcoin's Satoshi Conundrum

Concerns over quantum computing have long plagued Bitcoin, with millions of coins in old wallets exposed to potential theft. A proposed soft fork could phase out vulnerable addresses, but this would require dormant holders like Satoshi to publicly move their assets or risk losing them. In response, Dan Robinson of Paradigm has introduced a concept called Provable Address-Control Timestamps, or PACTs, which enables holders to generate a proof of ownership without spending or revealing their assets. By using a random salt and BIP-322 to produce a proof of ownership, holders can create a private commitment and timestamp it through OpenTimestamps. If Bitcoin later activates a soft fork that freezes vulnerable coins, the protocol could include a rescue path that accepts a STARK proof, allowing holders to spend their coins without revealing any 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 Bitcoin to adopt a STARK verification protocol, which would need a separate soft fork and substantial new infrastructure. Ultimately, the success of PACTs depends on the cooperation of holders, including Satoshi, and the implementation of necessary protocols and infrastructure.