Paradigm partner releases PACTs proposal, allowing holders from Satoshi Nakamoto's era to prove ownership of BTC without moving their assets

ChainCatcher reports that Bitcoin has always faced a "Satoshi-related problem" regarding concerns about quantum computing. If sufficiently powerful quantum computers are developed, millions of bitcoins stored in old wallets with exposed public keys could be at risk of theft, including approximately 1.1 million bitcoins believed to belong to the anonymous creator Satoshi, currently worth about $84 billion.

Veteran developer Jameson Lopp and five other developers officially proposed a solution in mid-April through BIP-361, aiming to gradually phase out quantum-vulnerable addresses over a five-year timeline and freeze any coins that fail to migrate. However, this proposal created another issue: Satoshi and all other long-term dormant holders would be forced to publicly "reveal themselves," or risk losing access to their assets.

Dan Robinson, general partner at Paradigm, published a proposal on Friday suggesting a way to avoid this trade-off. The core concept is "Proof of Address Control Timestamps" (PACTs). The main idea of PACTs is not to move coins, but to affix a timestamp proving ownership on a specific date, without revealing any information externally before the wallet owner actually needs to spend the coins.

If Bitcoin later implements a soft fork to freeze quantum-vulnerable coins, the protocol could include a rescue path that accepts STARK proofs—a type of zero-knowledge proof that remains secure against quantum computers—demonstrating that the holder created their commitment prior to the existence of quantum hardware. When the holder wishes to spend, they submit the proof and the network releases the corresponding coins. This redemption process does not disclose any information about the address, amount, or even the original timestamp creation date.