Bitcoin contributors have unveiled the ‘Post Quantum Migration and Legacy Signature Sunset’ proposal to transition the network’s cryptographic protocols from ECDSA and Schnorr to quantum-resistant alternatives. This initiative aims to shield approximately 4.9 million BTC (valued at $593 billion) currently exposed in vulnerable wallet formats, countering emerging threats from quantum computing advancements.
The vulnerability primarily affects legacy Pay-to-Public-Key (P2PK) address formats and wallets with reused public keys, including Satoshi Nakamoto’s estimated 1 million BTC holdings. The proposal warns that quantum computers could break existing cryptographic schemes within the next decade, jeopardizing Bitcoin’s security framework.
A multi-phase migration strategy has been outlined: Phase B mandates a hard cutoff after which non-upgraded wallets lose spending capabilities, while Phase C—currently in development—proposes a recovery mechanism using zero-knowledge proofs. This structured approach seeks to minimize network disruption while systematically sunsetting vulnerable signatures.
The plan emphasizes balancing security requirements with user flexibility, requiring broad community consensus before implementation. If adopted, this would mark Bitcoin’s most significant cryptographic overhaul since inception.