The Bitcoin network is moving to tackle new-generation security risks by considering a major protocol overhaul in response to threats posed by quantum computers. The latest move came with the introduction of a technical proposal called “BIP-361,” which aims to protect funds at risk due to public key exposure on the blockchain.
Rising security concerns
BIP-361 lays out a phased and time-linked transition plan to upgrade Bitcoin’s existing signature schemes. According to the draft, more than a third of circulating Bitcoins already have public keys exposed on-chain, potentially allowing a sufficiently powerful quantum computer to access their corresponding private keys.
The proposal’s authors warn that such an attack could go undetected, with stolen Bitcoins being quietly moved at a later stage. The draft highlights that pay-to-public-key (P2PK) addresses from the network’s early days are significantly more vulnerable, as their public keys are directly visible and can be specifically targeted in a quantum assault.
The core reason for proposing such a fundamental change to the Bitcoin protocol is that existing keys may soon become defenseless against advanced quantum computer attacks. The proposal clearly shows that a substantial share of on-chain funds is at risk.
Under BIP-361, the initial step would block new Bitcoin transfers to at-risk addresses. In subsequent steps, current transactions using outdated private-key signatures would be rendered invalid, effectively freezing unupdated funds. The process is envisioned as a gradual transition over several years, with coordinated participation from wallets, exchanges, and custodians.
Quantum debates and expert views
The proposal surfaces amid sharp disagreements in the Bitcoin ecosystem about the urgency of the quantum threat. Analysts at Benchmark, a research firm, describe the risk as “distant” and “manageable.” Google’s March announcement suggesting quantum attacks could arrive sooner than expected reignited debate, with some experts predicting a critical transition by as early as 2029.
Some specialists see Google’s warning as a pivotal moment for Bitcoin’s long-term security, while others argue the immediate danger is overblown. Bernstein analysts emphasize that this challenge is not existential, viewing it instead as a recurring technical update within Bitcoin’s ongoing evolution.
Michael Saylor, chairman of MicroStrategy, echoed this sentiment, asserting that the network is capable of rapid adaptation and warning against exaggerating the quantum threat.
Beyond BIP-361, alternatives are also under consideration. A researcher from StarkWare recently proposed a quantum-resilient roadmap that would make the network more secure using a soft fork rather than a major protocol change, signaling that the community has not yet reached consensus on the best way forward.
Both in Turkey and worldwide, the Bitcoin community is generally cautious about implementing foundational protocol upgrades. The decentralized nature of the network means that coordinating such sweeping changes can take years to accomplish.
