Most in the crypto industry have been dealing with Google’s paper this week on how quantum computers can break blockchain encryption. One startup is asking a different question – whether quantum hardware can make blockchain better.
Postquant Labs, which is building a quantum computer shared by the world, announced on Wednesday the launch of the first publicly available quantum classical blockchain testnet, where quantum computers and traditional technologies work side by side to solve problems.
Quantum computers exploit the physics of subatomic particles to test many possible solutions simultaneously, rather than checking them one by one, making them fundamentally different from the fastest conventional supercomputers, which are simply very fast versions of the same step-by-step approach.
According to a press release shared with CoinDesk, the testnet has attracted 13,000 researchers to sign up from MIT, Stanford, and universities around the world. Of these, six teams have submitted serious computational work so far.
Postquant Labs seeks to study how quantum processors can improve blockchain performance, in contrast to most blockchain developers who view quantum as a threat.
Awareness of the threat has increased severalfold since Google published a paper on Monday that found that breaking Bitcoin’s cryptographic defenses would require fewer than 500,000 physical qubits, roughly 20 times fewer than previous estimates.
Please note, however, that Postquant Labs’ testnet is a testing environment and not a live final product. This is where researchers conduct experiments before a product goes into production.
The testnet was established in consultation with D-Wave Quantum Inc, a leader in quantum computing systems, software and services.
“The hybrid design of the testnet is particularly interesting from a technical perspective. Participants can contribute using QPUs, CPUs, and GPUs, creating a shared environment to evaluate how different computing models perform in parallel,” D-Wave chief development officer Dr. Trevor Lanting told CoinDesk.
He added: “This creates an environment that helps to better understand how quantum methods compare to classical methods in a blockchain context, and where they can provide meaningful benefits, such as improved energy efficiency or security.”
Developers and researchers can earn QUIP tokens by solving complex mathematical problems using quantum machines, GPUs, or conventional CPUs. QUIP is a utility token that can be exchanged for computing resources provided by quantum and classical miners on the network.
If quantum computers are indeed able to outperform regular computers at blockchain tasks—solving problems faster, using less energy, and delivering better results—then the distributed ledger could become even more useful for real business applications, not just cryptocurrency transactions.
Colton Dillion, CEO and co-founder of Postquant Labs, said: “Today, annealing quantum computers are starting to show performance advantages in useful optimization applications in logistics, manufacturing and other fields, often providing better results, faster speeds and lower energy costs than traditional solutions.”
“Our goal is to achieve this quantum advantage through blockchain networks,” Dillion added.
So far, that’s a big “if.” This testnet is needed to prove whether quantum advantage is real or just marketing.
Postquant Labs told CoinDesk: “The launch of the mainnet will be entirely dependent on the performance of the testnet, but once we have demonstrated the network’s ability to solve real-world problems and demonstrated that quantum demand and supply exists on both sides of the market, we are eager to launch as soon as possible.”
Do quantum computers exist?
Yes, they did, but not in the sci-fi version of disrupting Bitcoin and other blockchains or hacking banks and major financial institutions.
D-Wave’s machine is not the quantum computer in Google’s paper. They are annealing systems, specialized hardware used for optimization problems such as route planning and resource allocation.
They can’t run Shor’s algorithm, they can’t break encryption, and they can’t perform any of the operations described in Google’s paper. They specialize in solving a specific class of problems, and this is the class Quip.Network is testing.
Postquant is using D-Wave’s Advantage2 annealing quantum computer through the company’s Leap cloud service.
Postquant said that in early internal testing, D-Wave’s Advantage2 system beat 80 H100 GPUs and 480 CPU cores in solution quality, solution time and energy efficiency for these specific optimization problems.
These results have not been independently verified or published. Until then, the claim belongs solely to the company.
What role does D-Wave play?
D-Wave is not a full partner or investor. and is solely advising Quip Network on testnet development” and is “providing access to the Advantage2 system and consultation on testnet development.”
Importantly, D-Wave did not independently endorse the overall technology architecture—their involvement was limited to providing hardware access and consulting.