Project Eleven has developed a new zero-knowledge proof system aimed at recovering Bitcoin that could be locked due to quantum vulnerabilities. This system allows a wallet's key-derivation path to serve as proof of ownership after quantum computers can forge signatures, according to the company.
Key Details
The project offers a potential recovery method for Bitcoin under BIP-361, which proposes freezing coins vulnerable to quantum attacks. This includes approximately 1.1 million BTC attributed to Bitcoin's creator, Satoshi Nakamoto. The proposal, published in April, aims to block new deposits to at-risk addresses after three years and freeze remaining coins after five years, effectively stranding a significant portion of Bitcoin's supply.
Project Eleven's prototype reportedly operates in 243 milliseconds on a standard laptop, making it significantly faster than previous solutions. However, the system remains unaudited and incomplete, and its implementation would require contentious changes to existing blockchain rules. The firm noted that while the recovery tool is promising, it is not yet ready for live deployment.
Background
The term 'Q-Day' refers to the point at which quantum computers could derive private keys from public keys, potentially allowing attackers to sign transactions from exposed addresses. More than 34% of Bitcoin is considered vulnerable under this scenario, according to BIP-361.
The development could influence Bitcoin's market dynamics, particularly for assets deemed vulnerable to quantum attacks. If widely adopted, this recovery tool may stabilize investor confidence in Bitcoin's long-term security. Investors will watch for further updates on the tool's audit and potential implementation timeline.