Three-Phase BIP Shields Bitcoin from Quantum Threat
Self-custody provider Casa, led by CTO Jameson Lopp, has proposed a Bitcoin Improvement Proposal (BIP) to address the quantum threat to the Bitcoin network.
A Deloitte study found that roughly 25% of Bitcoin addresses, including over one million BTC held by Satoshi Nakamoto, are quantum-vulnerable and at risk of future quantum computing attacks.
The BIP outlines a three-phase deprecation of legacy, quantum-vulnerable wallets: first, block incoming transfers to outdated ECDSA addresses. After a five-year grace period, unupgraded wallets will be frozen. An optional third phase would explore safe recovery methods for frozen funds via a subsequent BIP.
The proposal also endorses BIP 360, a SegWit v3 address format integrating three post-quantum signature algorithms to enhance blockchain security. This measure strengthens blockchain security ahead of the quantum threat.
Casa warns that failure to upgrade could result in asset loss. By mandating a shift to quantum-resistant wallets, the plan aims to secure the network against future quantum threat and prevent a sudden influx of old coins that could impact market stability.
Neutral
This proposal strengthens Bitcoin’s long-term security by addressing the quantum threat and mandating a move to quantum-resistant wallets. In the short term, implementation is gradual with a five-year grace period, so there’s minimal immediate impact on BTC supply or price. Over the long term, improved blockchain security and reduced risk of mass coin releases support network confidence, but traders are unlikely to react strongly until upgrade tools gain wider adoption.