Experts warn that delaying migration increases the risk of catastrophic quantum theft, which could cause significant economic disruption.

The final phase aims to help users who missed the migration window recover their funds through cryptographic methods, though this remains under research.

The urgency of proactive measures is underscored by recent advancements in quantum computing, which threaten Bitcoin’s security algorithms.

The proposal was introduced at the Quantum Bitcoin Summit, where experts are actively discussing solutions to quantum threats.

A new Bitcoin Improvement Proposal (BIP) aims to phase out vulnerable address types due to rising concerns over quantum computing threats, with a detailed three-phase migration plan.

Industry leaders like Naoris Protocol’s CEO warn of potential catastrophic consequences for Bitcoin holders if action is delayed.

He also responded to criticism by noting that inactive wallets could be targeted by quantum attacks if no measures are taken.

The first phase involves transitioning to quantum-resistant addresses, followed by a second phase that will freeze transactions from legacy addresses approximately five years later, and a final optional phase to recover funds using zero-knowledge proofs.

Jameson Lopp, a co-author of the proposal, emphasized that inaction would put funds at risk from malicious quantum attacks, highlighting the urgency of the initiative.

The proposal faces technical and political challenges, especially the need for community consensus, which can be slow to achieve.

Critics have raised concerns about the potential confiscation of inactive coins, including those linked to Satoshi Nakamoto, but Lopp defends the plan as necessary for security.

Lopp presented this initiative at the Quantum Bitcoin Summit in San Francisco, stressing the importance of user awareness about the risks of not upgrading.