Can SegWit Wallets Shield Bitcoin from Quantum Computing Threats

Bitcoin OG Willy Wu has proposed a way to safely store Bitcoin until a solution to the quantum Bitcoin threat is found: storing Bitcoin in a SegWit wallet for about seven years.

Quantum computing is a long-feared (and debated) tipping point for the cryptocurrency industry. It is theorized that any computer that can break the encryption has the ability to reveal user keys and leak sensitive data and user funds.

In an X post on Tuesday, Wu proposed an “intermediate measure” of transferring his Bitcoin to a SegWit-compatible address and holding it there until a quantum-secure protocol is developed.

SegWit (Segregated Witness) is an upgrade to the Bitcoin (BTC) protocol implemented on August 23, 2017.

SegWit can help hide keys

Wu argues that quantum computers can tell the private key from the public key, and that current tap root addresses “embed the public key in the address,” making them vulnerable to quantum computers, whereas SegWit hides the public key until the transaction is recorded.

“In the past, it was important to protect the private key (seed phrase). In the coming era of big, scary quantum computers (BSQC), the public key also needs to be protected,” he said.

“In the previous format, the public key is hidden behind a hash that cannot be easily decrypted by BSQC.”

However, Wu explained that this means Bitcoin users must refrain from sending Bitcoin from SegWit addresses until a solution to the quantum threat is developed.

However, Wu also acknowledged that even before quantum-resistant protocols are deployed, Bitcoin held in ETFs, treasury companies, and cold storage could become quantum-resistant if custodians take action.

He also noted that the “general consensus” is that quantum will not pose a threat to Bitcoin until at least 2030 and beyond, and that “quantum-proof standards and upgrades are already being rolled out.”

Executive claims SegWit has “no protection model”

However, Charles Edwards, founder of quantitative Bitcoin and digital asset fund Calprior, has previously warned of quantum threats to Bitcoin, claiming that this solution is “quantum insecure.”

“SegWit is not a protection model. We need to upgrade our networks as soon as possible. Posts like this that suggest it’s within seven years mean the network will collapse first,” he said.

“Bitcoin can adapt, but we need a lot more traction now and a real consensus next year. Bitcoin is the weakest network in the world.”

Related: Quantum threats to Bitcoin are still years away, Borderless Capital partner says

Critics say quantum fears are exaggerated

Critics, however, argue that the threat posed by quantum computers is overstated, as they are still decades away from practical use and large banks and other traditional targets will be cracked long before Bitcoin.