Aligning privacy incentives in P2MR

The discussion revolves around the potential implications of quantum computing on Bitcoin's address formats and the migration of Unspent Transaction Output (UTXO) sets in response to emerging quantum threats. Boris Nagaev expresses a preference for the P2MR address format due to its inherent quantum resistance, contrasting it with P2TRv2 which is not quantum-resistant by default and would require a subsequent fork to achieve security. He highlights that while simple software tweaks can mitigate local risks such as address reuse, systemic risks related to quantum computing remain unaddressable without significant changes to the protocol.

Nagaev discusses the timing of forks and their coordination with quantum-resistant upgrades as a significant challenge, noting the lack of viable solutions that do not rely on cooperative cryptographic quantum challenges (CRQC). He argues that even if quantum day (Q-day) is far in the future, it's crucial to plan for scenarios where a large number of coins might not be recoverable unless specific conditions are met. However, he also points out that many coins could potentially be safeguarded through simpler mechanisms like commit/reveal protocols without needing complex zero-knowledge proofs or hard forks.

Furthermore, he addresses the concern that migrating to a new format like P2TRv2 might increase the risk of coin confiscation or theft, suggesting that such a shift might not necessarily lead to a higher number of unrecoverable coins. He also speculates on the possibility that many holders of older coins might have already lost their keys or passed away, reducing the impact of any migration to newer, potentially less secure formats.

In conclusion, Nagaev seems cautiously optimistic about Bitcoin’s resilience against quantum threats, provided that recovery strategies for coins are implemented effectively. He also briefly touches upon the controversy surrounding potential protocol upgrades that include quantum signatures, indicating a reluctance to intertwine these with current economic models within the Bitcoin network due to fears of exacerbating issues like spam under the guise of enhancing security against quantum attacks.