Bitcoin Soft Fork to Block Legacy Addresses Against Quantum Threat
Bitcoin faces a future quantum threat as advances in quantum computing could break ECDSA and SHA-256. To guard against key-extracting attacks, developers led by Jameson Lopp have drafted a quantum-resistant soft fork.
The upgrade unfolds in three phases. Phase A bans transactions to legacy ECDSA/Schnorr addresses three years after activation. Phase B invalidates all such signatures two years later, freezing around 1.1 million BTC tied to early pay-to-pubkey formats. Phase C is optional and allows recovery of frozen funds via a zero-knowledge proof of seed ownership.
Early adopters get on-chain incentives, while outdated addresses face restrictions. The plan references BIP 360 for layered security and proposes migration to quantum-resistant P2QRH addresses. Although quantum computers capable of cracking Bitcoin encryption remain years away, this upgrade aims to preemptively secure the network against a looming quantum threat.
Bullish
By freezing legacy addresses and guiding holders to quantum-resistant formats, the soft fork reduces long-term security risk. Removing vulnerable coins from active circulation also shrinks effective supply, which is bullish for BTC. In the short term, coordination challenges and temporary volatility may arise as traders migrate funds. Overall, the proactive upgrade strengthens network integrity and investor confidence, supporting a positive market outlook.