A new Bitcoin proposal, BIP-361, aims to address the looming threat of quantum attacks by gradually disabling the network's existing signature verification methods. The plan would freeze coins that do not migrate to quantum-resistant addresses within a five-year window.
Quantum computers, if powerful enough, could theoretically derive private keys from public keys exposed on the blockchain, leading to wallet theft. This proposed upgrade, co-authored by Jameson Lopp and other developers, would prevent users from sending Bitcoin to older, vulnerable address types. Over 34% of all Bitcoin has exposed a public key on-chain, making these funds susceptible.
BIP-361 outlines a three-phase timeline: blocking inflows to vulnerable addresses, freezing legacy coins, and offering a future recovery path for late adopters using zero-knowledge proofs. This marks a significant shift, as no prior Bitcoin upgrade has invalidated existing transactions, forcing a choice between network defense and individual coin access.
While some developers view the proposal as a necessary defense against potential future theft, others criticize it as a form of confiscation. Critics argue it undermines the principle of "not your keys, not your coins," by enabling protocol-enforced freezes for reasons deemed important by network controllers.
Some experts believe a hard fork is the only way to protect funds from exposed ECDSA keys. They note that a contested upgrade could fracture the network, causing its value to collapse if a quantum theft is demonstrated. The urgency is driven by the accelerating pace of quantum computing development, with some organizations setting deadlines as early as 2029 for quantum-resistant infrastructure.