tl;dr
Jameson Lopp and five co-authors proposed a Bitcoin software update to counter quantum computer threats by incentivizing users to adopt quantum-secure storage. The plan involves phasing out transactions to quantum-vulnerable addresses and restricting spending from them within five years, with an opt...
Jameson Lopp, CTO and co-founder of Casa, along with five co-authors, proposed a significant change to Bitcoin’s software aimed at countering the looming threat posed by quantum computers. Their proposal seeks to incentivize Bitcoin owners to adopt cryptographically secure storage methods that quantum computers cannot compromise, effectively turning quantum security into a private incentive. The warning is stark: failure to upgrade could mean losing access to funds.
Experts have grown increasingly concerned that quantum computers, once thought to be a distant danger, might soon be capable of reverse-engineering private keys, potentially unleashing ancient Bitcoin into the market during a so-called liquidation event. Lopp emphasized the urgency, suggesting Bitcoin’s community must unite and reach consensus to prevent this scenario.
The proposal outlines phased actions starting with disallowing transactions sent to quantum-vulnerable addresses, encouraging the use of “post-quantum” Bitcoin address types. A subsequent phase would restrict spending from these vulnerable addresses within five years, while an optional third phase would introduce a separate Bitcoin Improvement Proposal (BIP) focused on quantum-safe recovery of frozen coins.
This initiative debuted at the Quantum Bitcoin Summit in San Francisco, where key stakeholders convened to develop strategies for mitigating quantum risks. According to a Deloitte study, approximately 25% of all Bitcoin is at risk under quantum threat, including roughly 1 million coins associated with Bitcoin’s mysterious creator, Satoshi Nakamoto. The authors underline the unprecedented nature of this threat, warning it poses the most critical challenge to Bitcoin’s cryptographic foundations ever faced, with potential for widespread economic disruption.
The proposal references BIP 360, designed by Protocol Engineer Hunter Beast, which introduces post-quantum cryptographic address types with varying security levels. Lopp acknowledged that the larger data sizes associated with quantum signature schemes could reignite debates around Bitcoin’s transaction throughput capacity. As with all BIPs, this proposal will undergo community discussion and consensus-building on the Bitcoin Core GitHub repository, a process known for its deliberate pace.
Complementing Lopp’s approach, other proposals are also in the pipeline to bolster Bitcoin’s future resilience. For instance, Michael B. Casey, Marathon’s Director of Engineering, has suggested an “hourglass” mechanism that would regulate transaction rates from ancient wallets vulnerable to quantum attacks, adding another layer of defense to the evolving quantum challenge.