BitMEX pitches ‘canary fund’ alternative to Bitcoin quantum coin freeze

BitMEX Research has projected an alternate to freezing quantum-vulnerable dormant Bitcoins, advocating a wait-and-see attack and a “canary fund” with a quantum bounty instead. 

BitMEX Research proposed a brushed fork connected Thursday that would lone activate a afloat frost of susceptible coins if it is “proven that a quantum machine susceptible of stealing Bitcoins really exists.”

The strategy uses a “canary approach,” creating a peculiar Bitcoin (BTC) code utilizing a “Nothing-Up-My-Sleeve Number” (NUMS). This is simply a cryptographic impervious successful which the backstage cardinal is unknown, but it is simply a valid code that could theoretically beryllium spent by a almighty capable quantum computer.

Users tin donate BTC to this code arsenic a bounty, incentivizing immoderate quantum-capable histrion to “ring the alarm” by spending from it. Only if idiosyncratic spends from this canary code does the frost automatically activate, arsenic it proves the quantum threat is real. 

The solution provides an alternate mechanics to the BIP-361 connection connected Tuesday that suggested freezing dormant, quantum-vulnerable Bitcoin to forestall it from being stolen by atrocious actors successful the future. 

BIP-361 drew important community pushback, with immoderate comments calling it “authoritarian” and “confiscatory.”

Canary ticker authorities prevents automatic freeze

BitMEX’s projected “canary ticker state” would inactive let aged coins to beryllium spent, provided malicious actors utilizing quantum computers bash not effort to bargain from the “canary fund.” 

Investors participating successful the canary money tin usage multisignatures and retreat their BTC astatine immoderate time, it explained. 

There is besides a information model wherever quantum-vulnerable transactions could inactive beryllium allowed aft the five-year people projected successful BIP-361, but with outputs locked for a period. 

Related: Bitcoiners suggest freezing quantum-vulnerable coins successful BIP-361

“While this attack adds complexity and risk, fixed however arguable immoderate coin frost is, mitigating the interaction of the frost utilizing this benignant of strategy whitethorn beryllium worthy consideration.”

BIP-361 is simply a unsmooth thought for a contingency plan

Meanwhile, BIP-361 co-author Jameson Lopp has said his Bitcoin betterment connection was much of a “rough thought for a contingency plan” than thing acceptable to beryllium projected for activation. 

“I cognize folks don’t similar it. I don’t similar it myself. I wrote it due to the fact that I similar the alternate adjacent less,” helium wrote connected X connected Wednesday. 

He told Cointelegraph that it was a “rough sketch” to attack the contented of a “looming circulating proviso shock” if quantum computing advances to the constituent that a post-quantum signature strategy achieves statement for being added to Bitcoin.

Proposed three-phase solution successful BIP-361. Source: GitHub

Magazine: Nobody knows if quantum-secure cryptography volition adjacent work