But bitcoin will fork: Difference between revisions

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A soft fork would leave the old signature scheme valid, and quantum resistant signatures optional. People could keep using their old addresses if they want (reusing of addresses is not advised now either, but it happens a lot anyway). The old signatures, in this scenario, would need to be rejected by miners. The idea would be to force everyone to use QR signatures in an attempt to make the largest possible percentage of the circulating supply quantum resistant. Due to lost addresses (estimated to represent 20% of BTC), this percentage will never be 100%.
== This doesn’t fix the main problem. ==
What type of hard fork are we talking about? There are a few options to go at it:


Having quantum resistance as an option is no option at all, because it would do little to protect the value of BTC. If there were quantum-resistant BTC mixed with non-quantum-resistant BTC, a hack of non-quantum-resistant coins would devalue the quantum-resistant BTC, because they would all be part of the same circulating supply, on the same network. The bottom line will be: BTC got hacked.  
=== '''Option 1''' ===
Hard fork with as a result “BTC” becomes --> “BTC with new sig scheme where the old sig scheme is rendered unusable” This would mean all old coins are stuck. They all are on old addresses which only work with the old key pairs and the old signature scheme. THIS IS IMPOSSIBLE.


The only true option is a hard fork, and the only function of "legacy" BTC would be for owners to prove they own BTC, so that they can claim the quantum-resistant version of their BTC. Again, this would only work if 100% of BTC got claimed / transitioned, and if there was an arbitrary deadline for users to transition their old BTC (which would result in many people missing the deadline and essentially having their money deleted. This group would likely include Satoshi). If not, then a leftover percentage of BTC would remain vulnerable to a quantum hack indefinitely. After such a hack, the attackers could transition their stolen "legacy" BTC and claim QR BTC on the new chain just as any legitimate owner could, resulting in a "quantum-resistant" network where QC attackers might own a significant percentage of the supply, allowing them to manipulate the price severely.
=== '''Option 2''' ===
Hard fork with as a result BTC = old chain, and QRBTC is new chain
 
===== '''Option 2A''' =====
2A Before the hard fork, you will need to register and you can claim your new QRBTC by proving you owned BTC before the time of the fork. Can be done, but what is the value of the QRBTC blockchain and its coins? Not automatically the same as the original BTC. (By the way. How, for example, was the value of BCH established right after the fork?)
 
Downsides:
 
* You will exclude all users of BTC who didn’t register in time.
* The value of QRBTC will not be the same as the value of the original BTC. While the value of BTC could decline fast due to the fact the QRBTC is the chain that is pursued as the official chain. So the ones that sell their BTC first, will win. They profit of the top price of BTC, and of the price of QRBTC which will be an extra. But the ones that are late selling their BTC, will sell for a lesser price and might end up netting a loss including the price of QRBTC, so $BTC + $QRBTC might < $BTC before fork.
* This option is not possible when Quantum Computers can already crack ECDSA. Because in that case they could hack the addresses on the original chain and forge registration.
 
===== '''Option 2B''' =====
After the hard fork, you can claim your QRBTC by proving you own BTC.
 
Downsides:
 
* This has the same downsides as a soft fork. Because eventually anyone with a quantum computer would be able to find the private keys of the old BTC by deriving it from the public keys. That way they could forge ownership and still get the QRBTC through hacking.
* Also this has the downside of a hard fork where the new chain has a different value then the old chain and the price of the original BTC might decline fast. Crypto is a volatile market with uncertainty, but this would expand that uncertainty hugely.

Revision as of 15:42, 5 March 2021

This doesn’t fix the main problem.

What type of hard fork are we talking about? There are a few options to go at it:

Option 1

Hard fork with as a result “BTC” becomes --> “BTC with new sig scheme where the old sig scheme is rendered unusable” This would mean all old coins are stuck. They all are on old addresses which only work with the old key pairs and the old signature scheme. THIS IS IMPOSSIBLE.

Option 2

Hard fork with as a result BTC = old chain, and QRBTC is new chain

Option 2A

2A Before the hard fork, you will need to register and you can claim your new QRBTC by proving you owned BTC before the time of the fork. Can be done, but what is the value of the QRBTC blockchain and its coins? Not automatically the same as the original BTC. (By the way. How, for example, was the value of BCH established right after the fork?)

Downsides:

  • You will exclude all users of BTC who didn’t register in time.
  • The value of QRBTC will not be the same as the value of the original BTC. While the value of BTC could decline fast due to the fact the QRBTC is the chain that is pursued as the official chain. So the ones that sell their BTC first, will win. They profit of the top price of BTC, and of the price of QRBTC which will be an extra. But the ones that are late selling their BTC, will sell for a lesser price and might end up netting a loss including the price of QRBTC, so $BTC + $QRBTC might < $BTC before fork.
  • This option is not possible when Quantum Computers can already crack ECDSA. Because in that case they could hack the addresses on the original chain and forge registration.
Option 2B

After the hard fork, you can claim your QRBTC by proving you own BTC.

Downsides:

  • This has the same downsides as a soft fork. Because eventually anyone with a quantum computer would be able to find the private keys of the old BTC by deriving it from the public keys. That way they could forge ownership and still get the QRBTC through hacking.
  • Also this has the downside of a hard fork where the new chain has a different value then the old chain and the price of the original BTC might decline fast. Crypto is a volatile market with uncertainty, but this would expand that uncertainty hugely.