Recently, a new debate has emerged in the Bitcoin ecosystem that will fundamentally shake the security of cryptocurrencies. For the first time in its 16-year history, the Bitcoin network has brought the promise of “nobody can touch your money” into question, with a suggestion that rose directly from within the developer community, rather than from outside. By taking drastic measures against possible quantum computer threats, developers have become able to propose the mandatory moving or freezing of millions of Bitcoins on the network.
Quantum computer threat and critical Google report
Bitcoin’s current security structure is based on an encryption algorithm called ECDSA. Each wallet owner can protect their funds with a private key that only they know. However, Bitcoin transactions work by recording the public key on the blockchain. This poses the risk that if quantum computers become widespread in the future, hackers will be able to decipher private keys from public keys. According to recent Google research published in March, approximately 6.7 million BTC, a large amount in circulation, currently resides in addresses whose public keys have been exposed. Scientists stated that quantum technology could cause such fractures in a shorter time than thought and that 2029 could be a turning point.
In the new proposal prepared by developer Jameson Lopp and his team, it was stated that “In order to prepare against the quantum threat, Bitcoin owners may have to move their funds to safer addresses; otherwise, the wallets may be permanently frozen by the network.”
Three-stage change plan with BIP-361
In the proposal titled “Post Quantum Migration and Legacy Signature Sunset” titled BIP-361, which was recently updated in Bitcoin’s official proposal pool, a three-stage transition plan was drawn to strengthen security in the quantum era. While this proposal is based on BIP-360, which was brought to the agenda in February, it is inspired by Bitcoin’s well-known Taproot structure and removes the risky key-based spending path from the system.
According to the new plan, new Bitcoin sending to legacy and quantum-vulnerable addresses will be blocked within three years after a possible activation. It will continue to be possible to spend from these addresses, but funds will no longer be accepted.
In the second phase, which will start five years later, classical signatures such as ECDSA and Schnorr will be completely invalidated. Thus, transactions from wallets facing quantum risk will be rejected by the network and the funds in these wallets will be effectively frozen.
In the final stage, the possibility of recovering frozen coins may arise, with a recovery method that remains a subject of research and has not yet been fully developed, provided that the owners prove their identities using the “zero knowledge proof” technique.
Discussion and criticism in the community
One of the foundations of Bitcoin was complete control of private keys and the inability to move money without permission from the user. While the developer community states that quantum attacks pose a serious risk for network security, there are also many who think that the proposal may be contrary to this basic principle. Many users have harshly criticized the forced migration and coin freezing plan on community platforms. While some users stated that “This quantum proposal is extremely authoritarian and confiscatory; the upgrade should definitely be voluntary,” comments likening the application to centralized planning and directing user behavior also came to the fore.
The developer side, on the other hand, agreed that the measures taken were for defensive purposes and that action should be taken in order not to stand by and watch any attacker destroy value and trust. Despite this, it is estimated that the discussions on the Bitcoin philosophy will continue and will remain on the agenda until a consensus is reached among the community.
