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BIP-361, published in April by Jameson Lopp and five co-authors

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A statue of Satoshi Nakamoto, a presumed pseudonym used by the inventor of Bitcoin, is displayed in Graphisoft Park on September 22, 2021 in Budapest, Hungary. The statue's creators, Reka Gergely and Tamas Gilly, used anonymized facial features, as Nakamoto's true identify remains unconfirmed. (Phot.

A later step of that plan promised a recovery path using zero-knowledge proofs, a technology that lets someone prove to another person that they know a fact without ever revealing it.

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Summary

A new zero-knowledge proof system from Project Eleven offers a practical way to recover bitcoin locked under BIP-361’s proposed freeze of quantum-vulnerable coins, including Satoshi Nakamoto’s holdings. The scheme exploits the fact that quantum computers can break elliptic curve signatures but not the one-way hashing used in modern wallet key derivation, allowing only true owners with seed material to prove control. Benchmarks show Project Eleven’s prototype is dramatically faster than prior work, but it remains unaudited, incomplete, and would require contentious changes to blockchain rules before it could protect any live coins. The proposal to freeze bitcoin's quantum-vulnerable coins has always carried an asterisk. BIP-361, published in April by Jameson Lopp and five co-authors, would block new deposits to vulnerable addresses after three years and freeze whatever remained after five, stranding coins in more than a third of bitcoin's supply, including the roughly 1.1 million BTC attributed to pseudonymous creator Satoshi Nakamoto.

Read full article at CoinDesk →

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