Bitcoin BIP-361: Plan to freeze quantum-vulnerable coins

Bitcoin developers propose BIP-361 to freeze up to 6.7M quantum-vulnerable coins, requiring migration to quantum-resistant addresses in a phased plan to counter quantum threats.

Bitcoin developers have unveiled BIP-361, a three-phase proposal designed to safeguard the network from the potential threat posed by quantum computers. This plan targets around 6.7 million BTC, including early addresses with exposed public keys, which could be compromised if quantum computing advances enough to break current cryptographic protections. Under BIP-361, new deposits to legacy, quantum-vulnerable addresses would be prohibited three years after activation. Five years post-activation, old signature schemes would be invalidated, effectively freezing any unmigrated assets. A recovery mechanism using zero-knowledge proofs is being considered for users who miss the migration deadline but still possess their seed phrases. The proposal, which builds on BIP-360's introduction of quantum-resistant output types, has sparked debate within the community. It challenges the principle that funds cannot be touched without the owner's consent, but aims to protect the network from future quantum-enabled theft by requiring migration to quantum-resistant addresses.