BitMEX Launches 'Canary Fund' as Bitcoin Quantum Threat Countermeasure..."Monitoring Instead of Freezing"

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BitMEX Research has proposed the introduction of a 'Canary Fund' to detect signs of attack first, instead of forcibly freezing Bitcoin (BTC) to counter future quantum computer threats.

According to crypto media outlet Cointelegraph on April 16 (local time), BitMEX Research proposed a soft fork that would activate freezing measures only when it is actually proven that a quantum computer can steal Bitcoin. This alternative came after the mandatory freezing method of the U.S. cryptocurrency market structure bill (BIP-361), proposed on the 14th, faced strong criticism from the community for being 'authoritarian'. BitMEX Research explained, "Simple freezing is highly controversial, so a plan to minimize damage through a canary system is worth considering."

The Canary Fund acts as a 'trap' that alerts in advance to quantum hacking threats, much like canaries detecting toxic gases in mines. BitMEX Research proposed creating a special Bitcoin address where no one knows the private key, and encouraging users to donate bounties to it. If a sufficiently powerful quantum computer emerges and attempts to withdraw funds from this address, it would serve as a strong warning signal that a quantum threat has materialized for the entire network.

The core of this system is to ensure that existing older Bitcoin addresses can be used normally until a threat is confirmed. Unlike BIP-361, which set a specific five-year deadline to collectively freeze vulnerable addresses, the Canary Fund does not infringe upon users' property rights unless an actual attack occurs. BitMEX Research defines this as a 'watchful waiting' state, envisioning that the freezing process would automatically activate only immediately after a threat is detected to protect the network.

However, the limitation of this method is that it entails technical complexity and risks. It cannot be ruled out that an attacker with a quantum computer might quietly exploit other vulnerable wallets on a large scale instead of targeting the Canary Fund's bounty. Researchers at BitMEX Research emphasized, "While this approach is not perfect, it could be a reasonable compromise to prevent the ecosystem disruption that unconditional freezing would bring."

Currently, a philosophical debate is intensifying among Bitcoin developers regarding security in the quantum era. Jameson Lopp, co-author of BIP-361, stated that his proposal is more of an emergency plan to prevent the worst-case scenario than a perfect solution. Market experts predict that BitMEX Research's latest proposal will gain support from the community that has opposed mandatory freezing, leading the discussion on Bitcoin's next-generation security standards into a new phase.

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