While cryptocurrency infrastructure and technological risks remain on the agenda, Dan Robinson, who conducts research at Paradigm, brought up a new method for Bitcoin investors against quantum computer threats that may arise in the future. The system, called “Provable Address Check Timestamps” (PACTs), revealed in Robinson’s May 1 article, specifically aims to ensure that former owners are prepared for future quantum risk without having to reveal their identities or move their funds.
How does the PACTs system work?
In this approach suggested by Robinson, users can cryptographically prove their control over their private keys without taking any action. This evidence is recorded with a timestamp and kept confidentially, thanks to Bitcoin’s existing infrastructure. In this way, one day, if necessary, users will be able to safely show that they have owned assets in the past by presenting this evidence with technologies such as zero-knowledge proofs.
Robinson says he recommends this method because it “makes it possible for Bitcoin holders to protect themselves without having to make any explicit transactions.”
PACTs predicts that if Bitcoin were to switch to a possible quantum-resistant system in the future, the proofs created in the past could enable users to re-secure their assets. However, it is also emphasized that for this system to be effective, it must be accepted by the community in the future.
Aspects that differentiate it from other suggestions
With quantum risk being taken seriously, many solution proposals are being discussed in the Bitcoin ecosystem. Standing out among these is BIP-361, a model developed by Jameson Lopp. This solution allows a certain transition period for users to move their assets to new quantum-resistant addresses, after which the old addresses in this group will become unusable.
However, the recovery mechanism on which BIP-361 is based depends on the BIP-39 standards introduced in 2013. Older wallets opened before this standard (including accounts attributed to Satoshi Nakamoto) do not contain recovery phrases. The most important difference of PACTs is that transactions can be made directly with private key information, without depending on the composition of the wallet; thus providing appropriate protection for both new and addresses that have been around since the early days of Bitcoin.
Each method has its own advantages and disadvantages. In PACTs, the emphasis is on ensuring that transactions are confidential and that no signals are given to the market or third parties. However, for this protection method to be meaningful, the community and software developers will need to accept these proofs in the future.
How close is quantum risk?
For now, it does not seem possible for quantum computers to bypass Bitcoin’s current cryptographic security. Experts state that it will take years to achieve this power. However, the gap is gradually narrowing and if this technology becomes available, it will pose a significant threat, especially for old addresses. Many of the addresses in question have already had their public keys exposed and the funds have yet to be moved.
So, “when does risk become a real problem?” The question is on the agenda. While some investors prefer to postpone their preparations, some are already closely monitoring the discussions for protective steps.
Although quantum computers are not yet powerful enough to break Bitcoin at this stage, experts point out that the technological distance may close over time. All eyes are on which of the existing solutions the community will accept.
