BIP-361 proposes transitioning the network to quantum-resistant addresses and eventually freezing funds held in vulnerable legacy wallets. The proposal builds on BIP-360 and includes a recovery mechanism using zero-knowledge proofs for users who fail to migrate in time. While it caused debate in the community over its implications, Bitcoin’s price remained relatively stable near $74,000.
Bitcoin BIP 361 Could Freeze Old BTC
A new proposal from cypherpunk Jameson Lopp and a group of Bitcoin researchers caused intense debate in the crypto industry. It attempts to address one of the network’s most existential long-term risks: quantum computing.
The draft proposal is known as BIP-361, and it outlines a plan to freeze Bitcoin held in quantum-vulnerable addresses, including an estimated 1.7 million BTC tied to early pay-to-public-key (P2PK) outputs. This includes Satoshi Nakamoto’s untouched holdings, which is currently valued at roughly $74 billion.
The proposal is of a three-phase roadmap that is designed to transition Bitcoin toward quantum-resistant security. It builds on an earlier proposal, BIP-360, which introduced a new address format intended to eliminate vulnerabilities associated with legacy cryptographic methods. While BIP-360 focuses on protecting newly created coins, BIP-361 addresses the big portion of Bitcoin’s supply that is still exposed unless users actively migrate their funds.
Under the plan, the first phase would restrict the creation of new transactions to only quantum-resistant address types after a set activation period. The second phase, which is a bit more controversial, would invalidate legacy signatures entirely after several years, effectively freezing any Bitcoin that remains in vulnerable addresses.
A final phase introduces a recovery mechanism using zero-knowledge proofs. This allows users who missed the migration deadline to potentially reclaim their funds if they can prove ownership.
BIP-361 (Source: GitHub)
Supporters of the proposal argue that it introduces a necessary economic incentive for users to upgrade their holdings. However, critics see it as a fundamental violation of Bitcoin’s core principles, particularly the idea that users should always retain full control over their funds.
Some people in the community described the proposal as overly authoritarian. They argue that forcibly freezing coins could set a dangerous precedent.
Despite the debate, Bitcoin’s market performance stayed relatively stable but subdued. Over the past 24 hours, Bitcoin traded around the $74,000 level, and saw a slight decline of approximately 0.40%.
BTC’s price action over the past 24 hours (Source: CoinCodex)
While the immediate impact of quantum computing on Bitcoin is still mostly theoretical, proposals like BIP-361 certainly prove that there is a growing urgency in the developer community to future-proof the network. At the same time, the strong pushback also means that there is still a deeper philosophical divide over how Bitcoin should be handled.
