Developers have proposed changing bitcoin software to protect against quantum attacks

What’s new? CTO and co-founder of the non-custodial service Casa, Jameson Lopp, has proposed changing the bitcoin blockchain software to prevent the threat from quantum computers.

Proposal on GitHub

What else is known? The proposal, co-authored by five other developers in addition to Lopp — Christian Papathanasiou, Ian Smith, Joe Ross, Steve Vaile, and Pierre-Luc Dallaire-Demers — would create incentives to push bitcoin holders to use cryptographically secure ways to store assets that can’t be hacked by sophisticated computers.

“It turns quantum security into a private incentive. Fail to upgrade [to a new address type] and you will certainly lose access to your funds,” the proposal’s abstract states.

Experts are increasingly concerned that quantum computers could start being used to extract private keys from crypto wallets in the next decade.

After gaining access to dormant, abandoned, and lost wallets, hackers can start a mass sale of stolen assets, which will crash the BTC exchange rate.

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According to the proposal, sending funds to quantum-vulnerable addresses would eventually be banned, forcing users to use more secure addresses. A subsequent phase would prevent “quantum-vulnerable” bitcoins from being spent for five years.

The third, optional phase would involve developing a separate Bitcoin Improvement Proposal (BIP) to address the problem of recovering frozen coins in a quantum-safe manner.

Lopp presented the initiative at the Quantum Bitcoin Summit in San Francisco, a closed-door event where attendees gather to discuss ways to mitigate quantum threats.

While the proposal would affect only 25% of all bitcoins deemed vulnerable according to a recent study by auditor Deloitte, the authors argue that “an unprecedented threat requires unprecedented action.”

These coins, in particular, include more than 1 million BTC stored in the wallet of an anonymous bitcoin creator known by the pseudonym Satoshi Nakamoto.

“A successful quantum attack on Bitcoin would result in significant economic disruption and damage across the entire ecosystem,” the statement reads.

In the proposal, the authors refer to BIP 360, an upgrade developed by Anduro engineer Hunter Beast that introduces certain types of addresses that utilize post-quantum cryptography with different levels of security.

Lopp said in May that quantum signature schemes, massive in terms of the amount of data required, could reignite the debate about the throughput of the bitcoin blockchain.

Proposals are assigned a BIP number as they are published to GitHub’s Bitcoin Core repository, where they are discussed and tweaked before implementation. This is a consensus-driven process that can be slow in practice.

Developers presented other proposals aimed at strengthening the blockchain, including one from Marathon’s director of engineering, Michael Casey. His proposal would limit the speed of transactions from older wallets, which could one day become vulnerable.