In brief
- Postquant Labs launched Quip Network, a blockchain testnet that allows mining with quantum computers or traditional hardware.
- The system replaces Bitcoin-style hashing with optimization problems based on the Ising model.
- The company says the network could also track quantum progress toward breaking Bitcoin’s cryptography.
A startup working with quantum computing company D-Wave says it has built a new kind of crypto mining testnet that replaces Bitcoin-style hashing with optimization problems that quantum systems may solve more efficiently.
On Thursday, Postquant Labs launched what it described as the first publicly available quantum-classical blockchain testnet. The network, called Quip Network, lets participants mine cryptocurrency using quantum computers, along with conventional CPUs and GPUs. Instead of competing to solve the hash-based calculations used in Bitcoin mining, participants compete to solve optimization problems.
“With Bitcoin, you’re solving what’s known as the hashcash problem,” Richard Carback, CTO and co-founder of Postquant Labs, told Decrypt. “What we’re doing is we’re searching for a particular Ising model that matches a particular energy target. It’s a problem that’s much more difficult for classical computers to solve, but very, very achievable for quantum computers to do in a faster capacity.”
Launched in 2024, Postquant Labs develops quantum computing software and protocols. The company partnered with Burnaby, Canada-based D-Wave Systems to run parts of Quip Network’s Proof-of-Work process on D-Wave’s quantum annealing processors.
Quip Network asks miners to solve an Ising model optimization problem. The Ising model optimization is a mathematical framework in which a problem is mapped to an Ising‑type energy function, and solving the problem corresponds to finding the lowest‑energy arrangement of a system of interacting binary variables.
Successful miners earn QUIP tokens. Those tokens are intended to pay for time on quantum computers connected to the network, the company said. Colton Dillion, CEO and co-founder of Postquant Labs, compared the model to Bittensor’s TAO network, which rewards users for contributing AI models and computing resources.
“We’re doing something very similar, except you’re mining the QUIP token, which will ultimately be used to rent time on other quantum computers,” Dillion told Decrypt.
Postquant said the model could also reduce the energy required to mine a block. Bitcoin mining has faced scrutiny over its electricity use because it relies on large numbers of machines performing continuous computations.
“For one block, we expect that it takes about 13 watts to mine a block on a quantum computer,” Dillion said. “That’s about as much as your light bulb is going to use in an hour.”
Quantum hardware remains far less accessible than conventional mining equipment, however. Traditional GPUs are widely available and used for various purposes—including gaming and crypto mining—while access to quantum computing systems is limited to corporate research labs and universities.
Trevor Lanting, chief development officer at D-Wave Systems, said the company views quantum processors as accelerators for specific workloads, rather than replacements for classical hardware. He pointed to commercial uses of D-Wave’s quantum annealing systems in business operations and logistics.
“We have customers solving operations problems and running business operations with our Leap platform today,” he told Decrypt. “I do not see the industry going through a sudden step change. Different technologies are commercializing at different rates.”
Beyond questions of cost and access, however, quantum computing also carries long-term security implications.
Researchers are increasingly warning about “Q-Day,” the point when a quantum computer becomes powerful enough to break the public-key cryptography used across the internet. Systems that rely on elliptic curve cryptography—including Bitcoin and Ethereum—could become vulnerable if quantum machines are able to derive private keys from public ones.
“Q-Day is getting a lot of attention because many people see it as a point where the industry reaches a certain capability level,” Lanting said. “I am more excited about quantum chemistry for gate-model applications.”
Postquant said it also plans to use a future version of the network’s system to benchmark progress toward breaking elliptic curve cryptography, the mathematical system that secures Bitcoin wallets.
“Keep mining Bitcoin,” Carback told Decrypt. “You should probably use one of our post-quantum wallets, and we’ll keep you updated on the progress.”
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Source: https://decrypt.co/363148/quantum-powered-crypto-mining-here-wont-help-you-mine-bitcoin
