Bitcoin News: New PACT System Could Protect BTC from Quantum Attacks

Key Insights:

• Bitcoin News: PACTs let BTC holders prove ownership privately without moving funds.
• PACTs protect old wallets, including those linked to Satoshi Nakamoto.
• The proposal requires major Bitcoin upgrades and a community-approved soft fork.

In recent days, Bitcoin news surrounding potential quantum computing threats has been gaining widespread attention. While the threats initially sounded distant, now developers are beginning to take them more seriously.

As part of an initiative to protect Bitcoin wallets, developers have introduced a new proposal called Provable Address-Control Timestamps (PACTs). This proposal could reportedly offer a way to protect vulnerable wallets without forcing users to move their funds or step into the spotlight.

Bitcoin News: How PACTs Secure BTC Wallets?

The latest Bitcoin news concerns a new proposal called Provable Address-Control Timestamps (PACTs). This proposal, introduced by Paradigm’s Dan Robinson, aims to protect Bitcoin wallets against quantum-computing threats.

PACTs Bitcoin News | Source: X

Notably, PACTs aim to allow BTC holders to prove they own their wallets without moving their funds or revealing their identities. Even long-dormant wallets like that of Satoshi Nakamoto can be made safe under this proposal.

This approach addresses a major drawback in earlier proposals, such as BIP-361. Those proposals would have forced users to publicly move their funds or risk losing access. With PACTs, even Satoshi could theoretically secure over 1.1 million BTC without ever stepping into the public eye. This could preserve both privacy and decentralization.

How PACTs Work in This Bitcoin News?

Interestingly, the PACTs system works quietly in the background. In detail, a BTC holder creates a private, timestamped proof of ownership using OpenTimestamp. The holder need not move any coins here.

More importantly, this proof stays hidden and secure, even if the Bitcoin network later freezes vulnerable wallets through an upgrade. If quantum threats eventually become real, the holder can then unlock their funds using advanced STARK (zero-knowledge) proofs. This will allow them to access their Bitcoin without revealing their identity or sensitive wallet details.

Bitcoin Has Been Preparing for Quantum Risks

While the current Bitcoin news on quantum threat may sound new, the crypto space has already taken steps to reduce such risks. For instance, the Solana ecosystem recently announced the Falcon upgrade to tackle potential quantum computing risks.

Blockchain platforms like the XRP Ledger have also taken similar steps to align with the trend. The XRPL is preparing for a quantum upgrade, scheduled for completion by 2028.

In the current Bitcoin news, the Paradigm team is preparing to protect the BTC network from quantum computers. The Bitcoin network relies on cryptographic systems like the Elliptic Curve Digital Signature Algorithm. This comes along with best practices such as one-time address usage and hierarchical wallets (BIP-32), to improve security.

However, older wallets, especially those created before 2012, don’t benefit from these upgrades. This includes many early holdings, potentially even those linked to Satoshi. These legacy addresses are more exposed if powerful quantum computers emerge.

Limits and Requirements of PACTs

While this Bitcoin news appears to offer a promising solution, PACTs don’t come without challenges. According to Dan Robinson, the system would require Bitcoin to eventually support STARK-based verification. This isn’t something the network can do today. It would need a separate soft fork and strong agreement from the wider Bitcoin community.

In simple terms, the infrastructure needed to verify these advanced proofs doesn’t exist yet. It would require major upgrades, including better support for multisignature wallets, more complex scripting capabilities, and compatibility with hardware wallets. All of this would take time, coordination, and careful standardization.

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