Bitcoin developers have rolled out a new proposal designed to protect nearly 25% of all BTC from potential quantum attacks. This initiative comes while adopting a post-quantum (PQ) output type called P2QRH, and it establishes a firm deadline for phasing out the older ECDSA and Schnorr signatures. This upgrade is mandatory. If users don’t make the switch, they could risk losing access to their coins for good.
As per the post, the plan introduces three phases. Phase A blocks any new funds from going to old, vulnerable addresses. Phase B kicks in five years later, completely banning transactions using legacy signatures. If needed, Phase C will allow recovery of older coins via a privacy-preserving method using zero-knowledge proofs tied to seed phrases. These steps flip quantum safety into a private responsibility—either upgrade or lose access forever.
Quantum Threats Becoming More Urgent
In 2024, three post-quantum algorithms were approved by NIST. Experts warn that between 2027 and 2030, quantum computers might be able to decipher the existing cryptography used by Bitcoin. What’s even more concerning is that over 25% of all BTC has already revealed public keys on-chain. If these keys aren’t secured, they could be quietly snatched up by an attacker.
Attackers could also steal money over months while remaining undetected. The “Q-Day” may therefore become noticeable long after the harm has been done. And it’s not simply financial danger. A politically motivated person might try to completely erode confidence in Bitcoin.
Urgency of Coordination Across the Ecosystem
However, coordinating such a major upgrade is challenging. Historically, Bitcoin updates take years due to the need for consensus among miners, wallets, exchanges, and custodians. Delay raises the risk. Developers argue that a phased but firm timeline is the only way to prevent disaster.
Importantly, this proposal preserves backward compatibility using soft forks. Non-upgraded nodes will continue to operate, though incorrectly interpreting upgraded transactions. Yet without full upgrades, users will eventually face isolation and fund inaccessibility.
Also Read: Bitcoin is No Longer Volatile, Says Deutsche Bank
