Most of the crypto industry spent this week processing Google’s paper on how quantum computers could break blockchain encryption. A startup is asking a different question — whether quantum hardware can make blockchains better.
Postquant Labs, which is building the world’s shared quantum computer, Quip.Network, announced Wednesday the launch of what it calls the first publicly available quantum classical blockchain testnet, where quantum computers and legacy technology work side by side to solve problems.
Quantum computers use the physics of subatomic particles to test many possible solutions simultaneously instead of checking them one by one, making them fundamentally different from even the fastest conventional supercomputers, which are just very fast versions of the same step-by-step approach.
The testnet has already attracted 13,000 signups from researchers at MIT, Stanford and universities around the world, according to the press release shared with CoinDesk. Out of these, six teams have so far submitted serious computational work.
Postquant Labs’ attempt to explore how quantum processors can improve blockchain performance is at odds with most blockchain developers who see quantum as a threat.
The threat perception has multiplied after Google published a paper on Monday that found that breaking bitcoin’s cryptographic defenses would require fewer than 500,000 physical qubits, about a 20-fold reduction from previous estimates
Note, however, that Postquant Labs’ testnet is a test environment, not a live, final product. This is where researchers experiment before anything goes into production.
The testnet was built in consultation with D-Wave Quantum Inc, a leader in quantum computing systems, software and services.
“From a technical perspective, the hybrid design of the testnet is particularly interesting. Participants can contribute by using QPUs, CPUs and GPUs, creating a shared environment to evaluate how different computing models perform side by side,” says Dr. Trevor Lanting, Head of Development, D-Wave, to CoinDesk.
“This creates an environment that helps better understand how quantum approaches compare to classical methods in a blockchain setting and where they can provide meaningful benefits such as improved energy efficiency or security,” he added.
Developers and researchers can earn QUIP tokens by solving complex mathematical problems using quantum machines, GPUs or regular CPUs. QUIP is intended to be a utility token that can be exchanged for computational resources provided by quantum and classical miners on the network.
If quantum computers can actually outperform regular computers on blockchain tasks — solving problems faster, using less energy, and delivering better results — then distributed ledger could become much more useful for real business applications, not just crypto trading.
“Today, annealing quantum computers are beginning to show performance benefits in useful optimization applications across logistics, manufacturing and beyond, often delivering better results, faster and at lower energy costs than classical solutions,” said Colton Dillion, CEO and co-founder of Postquant Labs.
“Our goal is to make this quantum advantage available across a blockchain network,” Dillion added.
Right now it’s a big “if”. This testnet will prove whether the quantum advantage is real or just marketing.
“The mainnet launch will depend entirely on the performance of the testnet, but we are eager to launch as soon as we have proven the network’s capabilities to solve real-world problems and shown that quantum demand and supply both exist on both sides of the market,” Postquant Labs told CoinDesk.
Do quantum computers exist?
Yes, they do, but not the sci-fi version that breaks Bitcoin and other blockchains or hacks into banks and major financial institutions.
D-Wave’s machines are not quantum computers in Google’s paper. They are annealing systems, specialized hardware for optimization problems like route planning and resource allocation.
They can’t run Shor’s algorithm, can’t break encryption, and can’t do anything the Google paper describes. They’re good for a specific class of problem, and that’s the class Quip.Network tests.
Postquant uses D-Wave’s Advantage2 annealing quantum computer through the company’s Leap cloud service.
In early internal tests, Postquant says D-Wave’s Advantage2 system beat 80 H100 GPUs and 480 CPU cores on solution quality, time to solution and energy efficiency for these specific optimization problems.
These results have not been independently verified or published. Until they are, the claim is the company’s alone.
What role does D-Wave play?
D-Wave is not a full partner or investor. and has only advised Quip Network on the development of the testnet” and “provides access to the Advantage2 system and consultation on the development of the testnet.”
Importantly, D-Wave has not independently approved the overall technical architecture – their involvement is limited to providing hardware access and advice.
