Radical Plan to Protect Bitcoin from Quantum Computers Sparks Outrage

A draft proposal known as BIP-361, initiated by Bitcoin developer Jameson Lopp and a team of experts, aims to address potential risks posed by quantum computing to Bitcoin. The plan suggests freezing approximately 1.7 million bitcoins that are stored in older P2PK addresses, a move that includes the funds attributed to Bitcoin's creator, Satoshi Nakamoto, valued at around $74 billion. Concerns are rising that if these coins were stolen, it could lead to a significant drop in Bitcoin's market value.

The proposal outlines a three-phase transition to enhanced security against quantum threats:

1. Phase A: After three years, transferring bitcoins to outdated addresses will be prohibited.
2. Phase B: Five years following activation, all coins in vulnerable addresses will be permanently frozen as old signatures become invalid.
3. Phase C: A recovery method employing zero-knowledge proofs will allow owners of blocked addresses to access their assets using a seed phrase.

The authors view this as a motivational strategy for users to upgrade their systems, suggesting that freezing at-risk assets could enhance the valuation of coins held by other users. Nevertheless, Lopp has emphasized that this proposal is still in draft form and not yet set for integration; it serves mainly as a proactive measure against potential quantum advancements.

Reactions from the Bitcoin community have been overwhelmingly critical, with many branding the plan as authoritarian. Critics argue that such measures violate the core principles of the network by invalidating part of the unspent transaction output (UTXO). One user expressed, "This quantum proposal is highly authoritarian and confiscatory. Any upgrade should be voluntary, not forced."

Earlier this year, developer Olaoluwa Osuntokun showcased a prototype designed to enhance the security of Bitcoin wallets against quantum threats, highlighting ongoing efforts to safeguard the cryptocurrency ecosystem.