Breakout Session: DropKick

Breakout Session: DropKick

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Episode description

Notes from the breakout session led by conduition: “Breakout Session: DropKick” at the Post-Quantum Bitcoin Workshop at Stanford, 2026-08-28. Transcript written by Localhost Research.

This is an AI narration (ElevenLabs) of the written text, not a recording of the speakers.

Original text and more information: https://btctranscripts.com/quantum-workshop/2026-08/breakout-session-dropkick

Audio: CC BY 4.0. Text: bitcointranscripts contributors, MIT license.

Transcript

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0:00

Breakout Session: DropKick.

0:02

Notes from the breakout session led by conduition at the Post-Quantum Bitcoin Workshop at Stanford, 28 August 2026, written by Localhost Research.

0:12

This is an AI recording.

0:14

Find the original text and more information on btctranscripts.com.

0:19

Reframing "rescue"

0:21

Rescue protocols are often conflated with confiscation — but confiscation is not a requirement. The key concept is knowledge asymmetry.

0:31

The post-Q-Day landscape

0:33

Today, everyone is on legacy (pre-quantum) addresses. After a PQ output type is deployed, on Q-Day there will be coins that are PQ-safe and coins that are not — we only worry about the latter.

0:47

Those users' keys are usually BIP32-derived, sometimes behind hashes. Crucially, these users know things a quantum computer does not — but this isn't uniform across the UTXO set:

1:00

A never-used P2PKH address: the owner knows the preimage of their pubkey hash → asymmetry exists (assuming they never shared an xpub or the pubkey — a big assumption).

1:14

A used P2WPKH address: the pubkey is exposed → no hash asymmetry. But they may have another one — BIP32 hardened derivation is quantum-secure, and most wallets never share root-level xpubs, so most BIP32 wallets retain this asymmetry.

1:35

These asymmetries are not provable on-chain as-is — but we can introduce encumbrances on those UTXOs that let owners prove them (e.g., "prove you knew your public key before the quantum computer did"). That's what rescue protocols do.

1:50

What counts as an asymmetry

1:52

✅ Asymmetries: ❌ Not asymmetries.

1:55

Hashed addresses: Encrypted WIFs.

1:59

BIP32 hardened derivation (≥1 hardened step): FROST keys.

2:04

MuSig key aggregation: FROST signature nonces.

2:08

BIP39.

2:09

Knowledge of tapscript / Taproot tweaks.

2:13

Generalization: think of each asymmetry as a quantum-hard one-way function, a statement f(x) = y. Abstracting to that generic object lets you plug any of them into a rescue protocol: proving you knew the witness before the quantum attacker did.

2:28

Why not just create new asymmetries / migrate today?

2:32

If people were willing to act, they'd just move to PQ outputs. They may not want to reveal themselves or pay fees.

2:39

If you are standardizing ahead of time, why not standardize pre-registration (an obvious on-chain action)? Note: pre-registration must be standardized before use, or you risk making a commitment you can't redeem. That's out of scope here — this session covers what we can do after Q-Day.

2:58

Two flavors of rescue protocol

3:01

1. ZK protocols

3:04

Prototypes exist (STARKs over BIP32 hardened derivation):

3:09

roasbeef: proving time of a few seconds, but very large proofs

3:14

P11: fast, but also large

3:17

Proofs can be aggregated (complicated across different hash functions). Proof sizes can shrink from ~500 KB to ~50 KB with more proving time.

3:27

Drawback: ZK only works for certain knowledge asymmetries; others require posting your witness with the spending transaction.

3:36

Perspective: in a world where rescue protocols are in play, "we don't care so much about hard forks."

3:43

2. Commit/reveal protocols

3:47

Requirements: a timestamping system (the blockchain itself) and a hash function.

3:53

Mechanics: hash your witness commitment together with a message, hide it in a particular block → wait → then reveal the witness and message. Anyone (assuming reorgs are impossible past some depth) can verify. Effectively, f(x) becomes a public key: anyone who knew x could have made the commitment.

4:14

DropKick and Lifeboat are the two examples.

4:17

Lifeboat vs. DropKick: locating commitments

4:21

How does a verifier find the commitment on-chain?

4:25

Lifeboat: uses an index — commitments flagged at the end of an OP_RETURN. But nothing proves a flagged entry is a true commitment, so the index can be griefed.

4:37

DropKick: no index — the signer supplies a proof π (OpenTimestamps-style) that the commitment was included in a specific block: a Merkle/SPV-style proof revealing the path to the block hash.

4:52

Upside: verifiers keep no indexes.

4:56

Downside: π can be ~1 KB — "not the end of the world." (But is the index really that bad?)

5:03

Miner censorship & game theory

5:06

Lifeboat is not vulnerable to censorship-based theft: the index lets you show you were the first valid commitment.

5:14

DropKick offers no such protection: a miner seeing your reveal in the mempool could censor/reorg it and insert their own commitment in the meantime.

5:23

DropKick therefore relies on game-theoretic arguments: each reveal must carry a fee proportional to the input value — roughly fee > (input value) / (blocks you must wait) — to incentivize miners to include your transaction rather than attack it.