Satoshi Nakamoto Bitcoin holdings are at risk of being stolen as the quantum threat becomes more likely. BTC developer Hunter Beast has proposed Hourglass V2 amid debate over the best solution to Satoshi’s supply to mitigate the impact of the selling pressure Bitcoin would face if these coins were stolen.
BTC Dev offers solutions on how to manage Satoshi Nakamoto’s Bitcoin Holdings
Beast has released version 2 offer hourswhich aims to reduce the output of Pay-to-Public-Key (P2PK), which can be included in the transaction input to 1 BTC per block. Notably, Satoshi Nakamoto’s Bitcoin holdings of around 1.1 million BTC is a P2PK address that exposes the public key, making it more vulnerable. quantum attacks.
A Chain report revealed that approximately $718 billion of Bitcoin is held in addresses vulnerable to quantum attacks, including these P2PK addresses. Thus, Bitcoin can be with a unprecedented supply shock if these coins are stolen by quantum attackers.
The Hourglass Beast proposal aims to minimize sales pressure as well as offering a freeze or burn deal. Coins by Satoshi Nakamoto so that they do not fall into the wrong hands. The Hourglass v2 proposal also noted that burning or freezing these coins would be considered confiscation, which could set a dangerous precedent for changing Bitcoin’s monetary policy.
If enabled, the Hourglass V2 proposal ensures that only one P2PK output can be included as a transaction input per block. Furthermore, no P2PK output can be created to any address that is not currently being used. Finally, no P2PK output can be created from other output types.
Meanwhile, it should be noted that this proposal only applies to P2PK addresses, and other outcomes that are vulnerable to quantum threats remain at risk. This is because imposing similar restrictions on other types of output can limit throughput Quantum-resistant Bitcoin addresses. These other output types are still commonly used, unlike Satoshi Nakamoto’s P2PK address, which makes the latter easy to sunset.
The basis of the proposal
The Hourglass V2 proposal limits P2PK output to around 144 BTC per day. Beast pointed out that this should effectively reduce the market impact of quantum attacks on P2PK coins. these quantum attackers unable to dump all Bitcoin at once.
Without such restrictions, more than 6,000 P2PK transactions can be executed in each block, which will market more than 300,000 BTC per block. At this rate, all P2PK coins, including Satoshi Nakamoto, can be spent within hours.
However, according to the Hourglass V2 rules, it will take more than 32 years to transfer all P2PK coins, which significantly reduces the market risks associated with quant. One positive thing is that key holders like Satoshi Nakamoto will have to transfer their coins even after the offering is activated, as long as no quantum activator is currently competing for P2PK transactions.
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