Quantum computing research company Project Eleven is offering a 1 BTC prize through its "Q-Day Prize" initiative, awarded to the first team that successfully cracks elliptic curve cryptography (ECC) keys using Shor's Algorithm on a quantum computer within one year.
The company stated in a Wednesday announcement: "The goal of this prize is simple yet urgent: to quantify the real-world threat quantum computing poses to Bitcoin's core cryptographic security."
The Quantum Threat to Bitcoin Security
Quantum computers pose a potential risk to Bitcoin primarily through their ability to break the cryptographic algorithms securing blockchain networks. Project Eleven highlights that:
- Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signing
- Quantum computers running Shor's Algorithm could theoretically derive private keys from public keys
- This vulnerability threatens the security of cryptocurrency wallets
- Over 6.2 million BTC (worth nearly $500 billion) may be at risk
"We still have no clue how close existing encryption is to a quantum 'doomsday' scenario," said Alex Pruden, Project Eleven co-founder and CEO. "The Q-Day Prize is designed to transform quantum computing's theoretical threat into measurable, concrete models."
Current Quantum Computing Landscape
Several tech giants are actively pursuing quantum computing research:
| Company | Quantum Computing Project |
|---|---|
| Alibaba | Quantum Lab |
| Amazon | Braket quantum computing service |
| Quantum AI (including Willow chip) | |
| IBM | Quantum Experience |
| Microsoft | Majorana 1 topological quantum chip |
Microsoft reported a significant breakthrough in quantum accessibility earlier this year through its Majorana 1 chip. Experts estimate that breaking Bitcoin's SHA-256 hashing algorithm would require quantum computers with millions of stable qubits.
👉 Explore how quantum computing could reshape crypto security
FAQs About Quantum Computing and Bitcoin Security
1. How soon could quantum computers break Bitcoin's encryption?
Current estimates suggest it would require quantum computers with millions of stable qubits - technology that doesn't exist yet. Most experts believe we're at least a decade away from this capability.
2. What's the difference between Shor's Algorithm and Grover's Algorithm?
Shor's Algorithm efficiently factors large numbers (threatening ECDSA), while Grover's Algorithm provides quadratic speedup for searching unsorted databases (potentially affecting mining difficulty).
3. Can Bitcoin upgrade to quantum-resistant cryptography?
Yes, the network could implement post-quantum cryptographic algorithms through a soft fork if quantum computers become an imminent threat.
4. How much Bitcoin is currently vulnerable?
Project Eleven estimates over 6.2 million BTC stored in vulnerable wallet types could be at risk from quantum attacks.
5. Which wallets are safest against quantum attacks?
Newly generated addresses (not reused) and wallets using quantum-resistant signature schemes like Lamport signatures provide better protection.
6. Are other cryptocurrencies vulnerable to quantum attacks?
Most cryptocurrencies using ECDSA or similar cryptography face similar risks, though some newer projects are building quantum resistance into their protocols.