Crypto news

Binance founder Changpeng Zhao (CZ) has made a radical proposal: give Satoshi Nakamoto 12 months to move his bitcoins, then permanently freeze the inactive coins. This initiative, he says, is aimed at protecting the network from the impending quantum threat. If implemented, only about 20 million BTC would remain in circulation, as the rest would be locked.

CZ's idea stems from concerns that with the development of quantum computing, old wallets, especially those using the Pay-To-Public-Key (P2PK) format, will become vulnerable to hacking. In such wallets, the public key is fully exposed, making them an easy target. Zhao warns that if nothing is done, these coins will essentially go to whoever can hack them once quantum computers reach the necessary power.

Quantum Threat: Reality or Distant Prospect?

Zhao's proposal echoes an idea previously put forward by Ava Labs CEO Emin Gün Sirer. He also pointed out the vulnerability of old wallets using P2PK. According to his assessment, a quantum attacker has only a small window of opportunity for an attack, which complicates their task. However, in his opinion, when the threat becomes real, the community should consider freezing Satoshi's coins or setting a deadline for transferring all funds from the P2PK format.

Modern wallets and systems, such as Avalanche, do not use P2PK, but in the early days of Bitcoin, it was used everywhere. This makes about 1 million BTC mined in the Nakamoto era potentially vulnerable.

My analysis: CZ's idea certainly raises an important question about the future security of Bitcoin. However, the proposal for a forced freeze of assets contradicts the very spirit of decentralization. Instead of relying on the founder's "goodwill," the community should actively work on technical solutions, such as quantum-resistant hashes and signature algorithms, which will protect the network without violating the principles of immutability and freedom embedded in its foundation.