Coinbase Council Outlines Scenarios for Bitcoin Quantum Migration

The Coinbase Quantum Advisory Council has raised alarms about the vulnerability of Bitcoin to quantum computing, particularly highlighting that approximately 1.7 million BTC are at risk due to exposed public keys, including those belonging to Bitcoin's creator, Satoshi Nakamoto.

In total, the report suggests that up to 7 million BTC could be threatened by potential quantum attacks. To address these concerns, experts have outlined three primary scenarios:

1. Asset Burning: This approach would establish a deadline for users to transfer their funds to secure addresses, after which access to old wallets would be completely revoked.
2. Preserving Rights: This scenario would protect ownership rights without disrupting network operations, although it could introduce risks to market stability.
3. Intermediate Options: This could involve limiting the speed of withdrawals from older addresses or implementing special proofs of ownership to enhance security.

As part of the proposed solutions, the council suggested several mechanisms to mitigate risks:

• Hourglass: This would restrict the amount of BTC that can be withdrawn from old addresses in a single block, aiming to prevent market crashes.
• BIP-361: Utilizing zero-knowledge proofs to verify ownership of old keys without the need to disclose them.
• PACTs: Establishing secure commitments for fund transfers ahead of the quantum threat's emergence.

While the technical path to transitioning to post-quantum cryptography is well understood, the council emphasized that the real challenges lie in governance and achieving consensus among community members. They urged developers to start preparing migration protocols now, despite the fact that quantum computers are not currently an immediate threat.

In related commentary, analyst Willy Woo previously noted that, in the event of a quantum attack, Bitcoin veterans would likely attempt to acquire Satoshi Nakamoto's coins.