Bitcoin: The community is grappling with one of the most fundamental proposals in its entire history. Developers are proposing a plan to protect the network from future quantum computers – and it could mean a seismic shift for cryptocurrency holders. If the proposal is approved, some bitcoins could potentially be “frozen” in extreme cases.
Article Contents:
Quantum Threat Stops Being Theory
On Bitcoin’s official repository, a proposal was updated designated as Bitcoin Improvement Proposal (BIP)-361, titled “Post Quantum Migration and Legacy Signature Sunset”. Its goal is to prepare the network for the era of quantum computers.
The impetus includes, among other things, a recent report from Google. It suggests that breaking Bitcoin’s current cryptographic security could require less computational power than previously assumed. Some analysts have therefore begun mentioning 2029 as a possible milestone when quantum machines could pose a real threat.
Bitcoin today relies on ECDSA cryptography (elliptic curve digital signature algorithm). It operates on the principle of a key pair – private and public. While the private key remains secret, the public key is exposed on the blockchain during transactions.
This is where a potential vulnerability emerges. A sufficiently powerful quantum computer could reverse-calculate the private key from the public key, thus gaining control over the funds. According to Google’s estimates, as of March, approximately 6.7 million BTC were on addresses potentially vulnerable in this way.
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The Proposal: Migrate or Risk Freezing
One of the main authors of the proposal is renowned Bitcoin developer Jameson Lopp. Together with other cryptographers, he proposes that users gradually migrate to new, quantum-resistant addresses.
If they fail to do so, the network could freeze their coins in the future. Technically, they would still own them, but they wouldn’t be able to spend or move them.
BIP-361 builds on the earlier BIP-360, which envisioned introducing a new type of transaction called pay-to-Merkle-root (P2MR). It is based on the Taproot concept but eliminates elements that could be vulnerable in a quantum era.
Three Transition Phases
The plan involves a gradual migration divided into three phases:
Phase A (3 years after activation)
The network will stop accepting new transactions on old, quantum-vulnerable addresses. Users will still be able to spend from them, but not receive new funds.
Phase B (after 5 years)
Old signatures (both ECDSA and Schnorr) will be completely invalidated. Any attempt to spend from these addresses will be rejected. Practically speaking, this means freezing the coins.
Phase C (Under Research)
A proposed “rescue” variant involves using so-called zero-knowledge proofs. The holder could prove ownership without revealing the key and recover the funds.
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The Principle Dispute: Security vs. Freedom
However, the proposal has sparked strong reactions. Critics point out that it infringes on one of Bitcoin’s fundamental principles – that whoever holds the private keys has full control over their funds without third-party intervention.
Sharp responses have appeared on social media. Some users label the proposal as “authoritarian” and “confiscatory”, while others warn of “central planning” and forced migration.
According to critics, any upgrade should be voluntary, not forced by the threat of losing access to one’s own funds.
Developers: It’s Defense, Not Attack
The proposal’s authors, meanwhile, argue that it is a preventive step designed to protect the entire ecosystem.
“This is not an offensive approach, but a defensive measure. The Bitcoin ecosystem wants to protect itself against a scenario where a malicious actor could destroy its value and trust,” they state.
What It Means for Average Users
For the average bitcoin holder, this is not an immediate concern for now. The proposal is still in the discussion phase, and any potential implementation would take years.
However, if such a measure were to pass, it would mean a fundamental change in how Bitcoin operates. Users would be incentivized – or forced – to actively respond to technological developments.
The debate thus opens a broader question: Should Bitcoin remain absolutely immutable, or must it adapt to new threats, even at the cost of violating its original principles? It is precisely on this edge that one of the most important disputes in cryptocurrency history is unfolding today.
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