Binance founder Changpeng Zhao has proposed freezing up to 1 million Bitcoins linked to Satoshi Nakamoto if those coins remain stagnant after the upcoming change to quantum-resistant encryption.
Summary
- CZ proposed the freezing of inactive Bitcoin addresses after a future migration to quantum-resistant cryptography.
- His scheme could affect up to 1 million BTC which is believed to be linked to Satoshi Nakamoto.
- Bitcoin developers remain torn between protecting vulnerable coins and maintaining property rights.
Speaking during a June 18 appearance on the Galaxy Brains podcast hosted by Galaxy Research President Alex Thorn, Zhao said that quantum computing does not pose an insurmountable threat to Bitcoin because quantum-resistant cryptographic systems already exist.
Zhao argued that the most difficult task is coordinating a network-wide migration of that technology if quantum computers are eventually able to break Bitcoin’s current security model.
Referring to Bitcoin addresses that have remained inactive for years, including those widely believed to belong to Satoshi Nakamoto, Zhao said the network should establish a migration period of about six to twelve months after any future development in quantum-resistant cryptography.
Under his proposal, owners will be given time to move their coins to protected addresses before the legacy addresses are removed.
If no movement happens then, Zhao suggested that the remaining Bitcoin should be frozen under the new protocol. He pointed out that allowing vulnerable addresses to remain active indefinitely could result in quantum attackers gaining access to coins whose owners no longer participate in the network.
According to Zhao, such an outcome would create an unfair way to redistribute Bitcoin because ownership would effectively transfer to whoever starts developing the ability to crack those addresses. He stressed that the decision should not be his to make and said that any change would require the support of the Bitcoin community through consensus-driven processes.
Bitcoin developers are always divided on legacy coins
Zhao’s comments come as Bitcoin developers, researchers, and lawyers continue to debate how the network should handle coins protected by old encryption standards.
According to a June report published by Coinbase’s advisory board, Bitcoin should begin preparing for a migration path to post-quantum cryptography before quantum computers become a real threat.
The report, which includes contributions from Ethereum Foundation researcher Justin Drake, says that quantum computers do not endanger Bitcoin but says that planning ahead can reduce future disruptions.
The report presents one proposal that would establish a deadline for migrating coins protected by the existing ECDSA and Schnorr signatures. Proponents cited in the report argue that the freezing of immutable coins could prevent future attackers from acquiring large amounts of Bitcoin and could affect the stability of the market.
Critics cited in the same report take the opposite position. According to Coinbase’s advisory board, opponents argue that making dormant coins unusable would be a confiscation of private property and would go against Bitcoin’s principles of immutability and user control.
Property rights issues shape the debate
Among the biggest critics of Bitcoin’s silent freeze is Alex Thorn of Galaxy Digital.
As crypto.news reported in May, Thorn said that many Bitcoin developers and advocates believe that Satoshi coins should remain untouched regardless of future technological developments. Thorn argued that the issue goes beyond technical security because changing ownership rights could weaken Bitcoin’s credibility as a neutral financial system.
Discussing the risk posed by Satoshi’s assets, Thorn noted that the limited stash is distributed across approximately 22,000 addresses, many of which contain approximately 50 BTC. According to Thorn, that structure makes a large-scale quantum attack more difficult than some observers think.
Thorn also warned that any attempt to circumvent copyrights could face opposition from Bitcoin users. He said some members of the public may choose to endure a major market downturn rather than approve protocol changes that alter the regulation of long-standing wallets, including those associated with the creator of Bitcoin.
