- Paradigm’s Dan Robinson proposes PACTs to guard Bitcoin wallets from future quantum threats.
- Debate grows as experts warn that quantum computing could expose old Bitcoin wallets and funds.
- Competing plans split opinion between forced migration and privacy-based wallet protection models.
Concerns about Bitcoin’s future security have grown as quantum computing technology continues to advance. Dan Robinson, a researcher at Paradigm, has proposed a new system called Provable Address-Control Timestamps, or PACTs, to help protect dormant Bitcoin wallets from potential quantum attacks.
The proposal came shortly after researchers used a consumer quantum computer to crack a small cryptographic key. That development has started discussions around whether future quantum machines could eventually expose older Bitcoin wallets, including some tied to Bitcoin’s earliest holders.
Quantum Risk Puts Bitcoin Wallets at Risk
Robinson said future quantum computers could eventually break the cryptographic system that currently protects Bitcoin wallets. If that happens, attackers could gain access to exposed addresses and move funds from long-inactive wallets. He warned that some of the biggest risks involve early Bitcoin addresses, including wallets believed to belong to Satoshi Nakamoto.
According to Robinson, vulnerable holdings could total more than $75 billion. However, he also said forcing users to move their coins into newer wallets could weaken privacy and expose activity from dormant accounts.
PACTs Offer Alternative to Wallet Migration
Right now, one of the main proposals under discussion comes from Casa security executive Jameson Lopp through BIP-361. The plan would give Bitcoin users several years to move funds into quantum-resistant wallets. After that deadline, the network would stop accepting older signature formats. As a result, people who fail to move dormant funds could permanently lose access to their Bitcoin.
Robinson suggested a different approach. Instead of forcing users to move coins, his proposal would allow them to prove wallet ownership privately through cryptographic timestamps. The system aims to confirm past control of a wallet without exposing private keys or revealing identities.
For this proposal, Bitcoin would serve as the timestamping authority. Other means, like using OpenTimestamps along with cryptography, would be needed as well. In this scheme, each user will generate a secret value and sign a Bitcoin message. Then, they will convert all of this information to a cryptographically signed file via Bitcoin timestamping.
Bitcoin Community Faces Difficult Security Debate
Robinson acknowledged that the proposal still faces several challenges before Bitcoin developers could adopt it. The system does not yet support multisignature wallets or custodial accounts, which many investors and companies use today. He also noted that developers across the Bitcoin network would need to agree on future rule changes before the idea could move forward.
For now, quantum computers still cannot break Bitcoin’s encryption. Even so, researchers continue making steady progress in the field. That has increased pressure on Bitcoin developers to start preparing for a possible future threat before the technology reaches that stage.
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