Recently, people in the Bitcoin community have become increasingly worried about the potential threat of quantum computers. Some experts believe that these powerful computers could eventually crack the encryption that currently keeps the Bitcoin network secure.
Dan Robinson, a researcher at Paradigm, recently proposed a new method for securing Bitcoin wallets that haven’t been used in a long time. His idea, called Provable Address-Control Timestamps, or PACTs, aims to protect these older wallets, potentially including some of the very first Bitcoins – and even those thought to belong to Bitcoin’s original creator, Satoshi Nakamoto.
The risk of quantum “sunsetting”
The leading approach to protecting against potential threats from quantum computers is BIP-361, an idea from Jameson Lopp, Casa’s Chief Security Officer. It proposes a gradual transition period where users can move their funds to more secure addresses. After this period, older, less secure signatures would be disabled, effectively freezing those funds.
Robinson explains that as quantum computers become more powerful, they could potentially crack Bitcoin’s security and steal funds from users’ wallets. To prevent this, Bitcoin might need to stop supporting older types of addresses, which could cause problems for people who own Bitcoin but haven’t used it in a while. These users might have to prove they own their coins to avoid losing access to them.
PACTs offer a new way for users to prove they control their Bitcoin without revealing who they are or needing to transfer their funds. It’s a privacy-focused alternative to existing methods.
Quantum risk and Bitcoin debate
According to Robinson, Bitcoin was initially created so people could securely hold their digital money for a long time without needing to spend it. However, he points out that this original design could become a problem as quantum computing technology improves.
He cautioned that future, more powerful quantum computers could potentially compromise the security of Bitcoin wallets by breaking the ECDSA encryption they rely on. This could expose funds in even long-unused wallets, some dating back to Bitcoin’s beginnings, with potentially over $75 billion at risk.
He also pointed out that the threat isn’t just about technology that *might* exist in the future. If hackers develop the ability to use quantum computing before defenses are ready, they could steal funds from vulnerable Bitcoin wallets very quickly, potentially causing significant market disruption. This type of attack, he warned, could also lead to increased government oversight of Bitcoin’s security.
A possible solution being considered is to stop supporting older, less secure wallet types. However, as Robinson noted, this could create a problem: users might have to transfer their money to new addresses, potentially exposing their transaction history and decreasing their privacy, particularly for those who created their wallets a long time ago or haven’t used them in a while.
I’ve been looking at an interesting alternative to physically moving Bitcoin. It centers around using cryptographic timestamps to demonstrate ownership. This method is more private – it doesn’t require users to reveal who they are or relocate their Bitcoin holdings, which is a significant benefit.
PACT proposal and technical approach
Robinson’s PACT system aims to allow Bitcoin users to demonstrate past control of a wallet without sharing their private keys. It works by leveraging the Bitcoin blockchain as a public record of time, similar to tools like OpenTimestamps. This uses cryptographic techniques to verify ownership without revealing any sensitive information.
Users can prove they owned a Bitcoin wallet at a specific time by creating a secret code and using it to sign a standard Bitcoin message. This creates a unique digital fingerprint that’s recorded on the Bitcoin network, essentially creating a timestamp. They can then use this record as proof of ownership at that earlier time.
Robinson believes this system will only succeed if Bitcoin changes and improves. This probably means new rules allowing coins from older, inactive addresses to be moved or confirmed using advanced cryptographic methods, instead of relying on standard keys. He also points out that stronger verification technology, including systems designed to resist future quantum computers, will need to be incorporated as time goes on.
He admitted the current method isn’t fully developed yet. It doesn’t currently work with more complicated systems like wallets requiring multiple approvals or accounts managed by a third party. Plus, its success relies on support from other Bitcoin developers, so it’s not guaranteed to be widely adopted.
As a researcher, I’m following the ongoing advancements in quantum computing closely. We’ve seen some initial success in labs with breaking smaller elliptic curve keys, but breaking the keys used in real-world systems is still a long way off. Nevertheless, this development is fueling a larger conversation within the Bitcoin community about how we should proactively address the potential threat quantum computers pose to the network’s current security.
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2026-05-02 13:30