Startup lets researchers test blockchain tasks on a quantum computer for the first time

Most of the crypto industry spent this week processing Google’s paper on how quantum computers could break blockchain encryption. One 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 rather than checking them one by one, which makes 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 submitted serious computational work so far.

Postquant Labs’s attempt to investigate how quantum processors can improve blockchain performance stands in contrast to most blockchain developers who see quantum as a threat.

The threat perception has increased multifold after Google published a paper on Monday which found that breaking bitcoin’s cryptographic defenses would require fewer than 500,000 physical qubits, roughly a 20-fold reduction from prior estimates

Note, however, that Postquant Labs’ testnet is a testing environment, not a live, final product. It’s where researchers experiment before anything goes into production.

The testnet has been 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 using QPUs, CPUs and GPUs, creating a shared environment to evaluate how different compute models perform side by side,” Dr. Trevor Lanting, chief development officer, D-Wave, told CoinDesk.

“This creates an environment to help better understand how quantum approaches compare with classical methods in a blockchain setting, and where they may 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 meant to be a utility token that can be exchanged for computation 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 way more useful for real business applications, not just crypto trading.

“Today, annealing quantum computers are starting to show performance advantages on useful optimization applications across logistics, manufacturing, and beyond, often delivering better results, faster, and at lower energy cost than classical-only solutions,” said Colton Dillion, CEO and co-founder of Postquant Labs.

“Our goal is to make this quantum advantage accessible across a blockchain network,” Dillion added.

As of now, that’s a big “if.” This testnet needs to prove whether the quantum advantage is real or just marketing.

“Mainnet launch will depend entirely on the performance of testnet, but we are eager to launch as soon as we have proven the capabilities of the network to solve real-world problems, and shown quantum demand and supply both exist on either side 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 the quantum computers in Google’s paper. They are annealing systems, specialized hardware for optimization problems like route planning and resource allocation.

They cannot run Shor’s algorithm, cannot break encryption, and cannot do anything the Google paper describes. They are good at one specific class of problem, and that is the class Quip.Network is testing.

Postquant is using 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 out 80 H100 GPUs and 480 CPU cores on solution quality, time-to-solution, and energy efficiency for these specific optimization problems.

Those 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 is “providing access to the Advantage2 system and consultation on the development of the testnet.”

Importantly, D-Wave has not independently endorsed the overall technical architecture — their involvement is limited to providing hardware access and consultation.