- Six Bitcoin developers have proposed the BIP-361 to protect against future threats.
- Quantum computing could evolve into a critical threat to vulnerable BTC addresses.
- BIP-361 will freeze approximately 34% of the BTC supply if implemented on the network.
Six contributors from the Bitcoin (BTC) quantum security space, including Casa co-founder Jameson Lopp, have published BIP-361. The latest proposal targets to freeze approximately 34% of the BTC supply to prevent future quantum-enabled theft.
Developers’ Concern Over the Bitcoin Network
According to the developers, BIP-361 is primarily designed to protect Bitcoin against future threats associated with quantum computing. They consider it a simple but bold move that will freeze certain old Bitcoin addresses that may become unsafe in the future.
For context, the targeted addresses are linked to early wallets with public keys that are already exposed. The idea behind the development is that quantum computers could become so powerful that attackers can use them to steal funds from those vulnerable wallets. Therefore, instead of waiting to react, the developers are taking the initiative.
It is necessary to clarify that there is currently no threat to the Bitcoin network, considering its strong and reliable cryptography. However, quantum computing could change all that in a moment. According to experts, it is an evolving technology that could become powerful enough to break current encryption methods.
How the Proposal Works
To tackle the potential threat, BIP-361 outlines a clear plan, which involves the Bitcoin network stopping new transactions to vulnerable addresses by forcing users to move funds to safer wallets. The proposal also aims to block old signature methods and make it impossible to spend vulnerable coins using outdated security.
A final step in the proposal may allow users to recover funds using advanced methods, such as zero-knowledge proofs.
With the BIP-361 proposal in place, Bitcoin users, particularly those holding assets in old address formats, would be forced to upgrade their wallets. The latest development will operate with rules and timelines that would pressurise affected individuals or groups to relocate their funds to quantum-safe addresses.
An Ensuing Debate
Despite the risks described and the potential benefits of the latest proposal, dissenting voices exist among the Bitcoin community. Not every participant and stakeholder is comfortable with the idea of freezing accounts. While they argue that it goes against the idea of full control and freedom, supporters of the process debate that maintaining the status quo exposes the network to unprecedented risk.
In the meantime, BIP-361 is still a draft that has not been approved or implemented. However, it reveals the proactive nature of developers within the Bitcoin ecosystem, showing how they want to prepare against a potentially disastrous scenario that could be years away.
Related: Quantum-Safe Bitcoin: StarkWare’s New ‘No Soft Fork’ Defense
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
