The research team at BitMEX developed a new method for handling the security risks that quantum computers pose to Bitcoin protection. The researchers proposed a method that allows them to protect at-risk cryptocurrencies without implementing an immediate access restriction to their existing digital assets.
The researchers from BitMEX Research recommend a “wait-and-see” approach, which will provide access to older Bitcoin wallets until their actual threat level is established. The researchers will only initiate protective actions when actual quantum threats become confirmed through scientific evidence.
The soft fork proposal will establish a new protocol that activates coin freezing only when scientists demonstrate that a quantum computer possesses the capability to steal Bitcoin.
Canary fund designed to detect real quantum attacks
The proposal base begins with what BitMEX describes as its “canary fund” mechanism. The process creates a Bitcoin address through a cryptographic technique named “Nothing-Up-My-Sleeve Number” (NUMS) which establishes the unique Bitcoin address. A powerful quantum computer can access the private key for this address because it exists as a theoretical access point, although its actual key remains hidden.
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The users can create a Bitcoin bounty, which they send to this address. The system will show its Bitcoin security failure when a quantum-capable actor successfully breaks it and transfers the funds from the system. The system will activate its freeze process for vulnerable coins at that specific time. Users can use their older wallets until that moment because it brings no service interruptions.
The proposed solution serves as an alternative option to the currently reviewed BIP-361 proposal, which recommended freezing Bitcoin addresses that remain unused and face a quantum threat. The crypto community rejected that proposal because opponents believed it would create excessive restrictions or take property from users without permission.
BitMEX tries to decrease that problem by postponing critical decisions until they become urgent. The proposal allows participants to choose their options. The canary fund contributors can choose to combine multiple signatures when they want to take out their assets at any time. The system enables transactions to continue during the risk window because the threat has been identified.
Jameson Lopp, who helped develop BIP-361, considers his proposal to be a preliminary backup solution rather than an official project. He admitted the risks but believed the document should create a platform for discussing future dangers.
The Bitcoin community currently investigates two distinct methods for defending itself against quantum computer threats. The two methods show how the Bitcoin community disputes which approach to adopt for handling future quantum computer threats.
