{"id":24408,"date":"2026-04-16T11:42:55","date_gmt":"2026-04-16T11:42:55","guid":{"rendered":"https:\/\/businessprofittoday.com\/index.php\/2026\/04\/16\/bitmex-proposes-canary-fund-to-tackle-quantum-threat-without-freezing-bitcoin\/"},"modified":"2026-04-16T11:42:55","modified_gmt":"2026-04-16T11:42:55","slug":"bitmex-proposes-canary-fund-to-tackle-quantum-threat-without-freezing-bitcoin","status":"publish","type":"post","link":"https:\/\/businessprofittoday.com\/index.php\/2026\/04\/16\/bitmex-proposes-canary-fund-to-tackle-quantum-threat-without-freezing-bitcoin\/","title":{"rendered":"BitMEX Proposes \u201cCanary Fund\u201d to Tackle Quantum Threat Without Freezing Bitcoin"},"content":{"rendered":"<p>The post <a href=\"https:\/\/coinpedia.org\/news\/bitmex-proposes-canary-fund-to-tackle-quantum-threat-without-freezing-bitcoin\/\">BitMEX Proposes \u201cCanary Fund\u201d to Tackle Quantum Threat Without Freezing Bitcoin<\/a> appeared first on <a href=\"https:\/\/coinpedia.org\">Coinpedia Fintech News<\/a><\/p>\n<p>Quantum computing threat has become the talk of the blockchain industry. Therefore, BitMEX Research has <a href=\"https:\/\/x.com\/BitMEXResearch\/status\/2044517060315697382\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">proposed<\/a> a &#8220;Canary Fund&#8221; system in April 2026 as a direct counter to BIP-361&#8217;s controversial Bitcoin freeze plan.\u00a0<\/p>\n<p>This news plan offers a proof-first, freeze-later approach that only locks vulnerable coins if a real quantum attack is actually seen on-chain.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-new-approach-to-a-growing-quantum-concern\">New Approach to a Growing Quantum Concern<\/h2>\n<p>The fear around quantum computers breaking Bitcoin\u2019s security has been growing fast. Recently, Coinpedia news <a href=\"https:\/\/coinpedia.org\/news\/bitcoin-developers-propose-freezing-satoshi-era-coins-to-block-quantum-threat\/\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a> that a proposal called BIP-361 suggested freezing older Bitcoin addresses over time to prevent possible attacks.<\/p>\n<p>About 34% of Bitcoin, or 6.9 million coins, are still in older addresses that could be at risk.<\/p>\n<p>However, this idea goes against Bitcoin\u2019s core principle of ownership and decentralization, \u201cnot your keys, not your coins.\u201d<\/p>\n<p>To address this, BitMEX introduced a different path,&nbsp; one that focuses on proof before action.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-bitmex-s-alternative-the-canary-approach\">BitMEX\u2019s Alternative: The \u201cCanary Approach,\u201d<\/h2>\n<p>BitMEX says that acting too early could cause more harm than good.<\/p>\n<p>Instead, they propose a \u201cCanary Approach,\u201d a system that only reacts when a real threat is proven.<\/p>\n<p>This builds on their overall research series on quantum readiness, which includes:<\/p>\n<ul class=\"wp-block-list\">\n<li>Quantum Safe Lamport Signatures<\/li>\n<li>Taproot Quantum Spend Paths<\/li>\n<li>Mitigating the Impact of the Quantum Freeze<\/li>\n<\/ul>\n<p>The Canary Fund is the next step in that framework.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-how-the-canary-fund-actually-works\">How the Canary Fund Actually Works?<\/h2>\n<p>The system creates a special Bitcoin address using a Nothing-Up-My-Sleeve (NUMS) system. It\u2019s a cryptographic method that publicly proves nobody holds the private key to that address.<\/p>\n<p>Users can send Bitcoin to this address as a reward for anyone who can break it using a quantum computer.<\/p>\n<p>If someone ever moves funds from this special wallet, it would be clear proof that quantum computers are strong enough to break Bitcoin\u2019s security.<\/p>\n<p>If nothing happens, there is no freeze, and Bitcoin keeps working as usual.<\/p>\n<p>Therefore, instead of freezing millions of coins based on a possible future risk, the Canary Fund waits for real proof. This helps protect user ownership, reduce market panic, and keep Bitcoin\u2019s decentralized nature intact.<\/p>\n<p>It also creates a fair system where action only happens when it is truly needed.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-incentives-and-risk-concerns\">Incentives and Risk Concerns<\/h2>\n<p>However, not everyone agrees with this logic. Bitcoin investor Nic Carter <a href=\"https:\/\/x.com\/nic_carter\/status\/2044529680305328559\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">pointed<\/a> out a major weakness in the idea.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>He argued that a quantum attacker may not act openly or \u201chonorably.\u201d \u201cWe don&#8217;t necessarily know they will sequence things this way.\u201d<\/p>\n<\/blockquote>\n<p>Instead, they could quietly steal funds from large wallets and stay hidden, or target many smaller wallets for higher gains.<\/p>\n<p>BitMEX admits the design is complex and not risk-free. It introduces new assumptions about attacker behavior and adds technical uncertainty.&nbsp;<\/p>\n<p>But <a href=\"https:\/\/x.com\/Strike_Attack\/status\/2044542981630238988\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">supporters<\/a> of the idea believe it could reduce the damage of a sudden freeze while giving the network more time to respond if quantum threats ever become real.<\/p>\n<p>For now, this remains a proposal, not a confirmed upgrade.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The post BitMEX Proposes \u201cCanary Fund\u201d to Tackle Quantum Threat Without Freezing Bitcoin appeared first&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24409,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-24408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/posts\/24408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/comments?post=24408"}],"version-history":[{"count":0,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/posts\/24408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/media\/24409"}],"wp:attachment":[{"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/media?parent=24408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/categories?post=24408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessprofittoday.com\/index.php\/wp-json\/wp\/v2\/tags?post=24408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}