Quantum computer quickly mines cryptocurrency while using less energy

In an unprecedented experiment, a quantum computer has successfully mined cryptocurrency while consuming significantly less energy, according to researchers.

Cryptocurrencies and quantum computing intersect in two key areas. First, a sufficiently powerful quantum computer might be capable of breaking the encryption algorithms that currently safeguard cryptocurrencies from hacking. Second, research indicates that employing quantum computers could drastically reduce the substantial energy consumption associated with cryptocurrencies.

To explore this potential, Colton Dillion from Postquant Labs, along with his team, established an experimental blockchain network named Quip, operational since April. This blockchain functions as a public ledger where users compete to complete a calculation known as “proof of work” to add new records. In most cryptocurrencies, the computer that completes the task first receives coins, and the block added to the ledger confirms the transaction permanently.

Within Quip, the proof-of-work calculation involves solving an optimization problem, similar to determining the most efficient delivery schedule for a food service or creating an ideal investment portfolio. While the majority of Quip’s network consists of conventional computers, it also includes an Advantage2 computer built by D-Wave Quantum, which appears to outperform traditional computers.

“The challenge is complex enough to pose a real test for classical devices, yet not so complex that it becomes impossible for both classical and quantum devices. This provides quantum technologies with a genuine opportunity for significant impact,” states Carlos Perez-Delgado from the University of Kent in the UK, who is not involved with Quip.

The computational abilities and practical applications of D-Wave’s quantum computers have been a topic of debate. For instance, in 2024, the company claimed its quantum computer solved a problem that was otherwise unsolvable for conventional supercomputers. However, a different research group later performed a similar task on a standard laptop.

Dillion believes Quip’s decentralized nature can help resolve such debates. “That’s precisely why it’s a blockchain. Skeptics can join the network and verify the results themselves,” he suggests.

During an investor presentation on June 1, D-Wave CEO Alan Baratz revealed that Advantage2 is only accessible to Quip for about five minutes daily. Consequently, Dillion notes, it competes in roughly one-third of the blocks being added to the network and wins 92% of those, indicating that Advantage2 is advantaged in tackling Quip’s proof-of-work problem compared to the rest of the network.

Baratz also mentioned that Advantage2 consumes significantly less energy than its competitors, though detailed benchmarking studies from the two companies have not yet been released. “To me, quantum computing represents energy-efficient solutions for complex computational challenges,” Baratz remarked.

Preliminary findings from Quip support this assertion. Dillion claims that using Advantage2 requires about 100 times less electrical power—12.5 watts compared to 1334 watts—to win a block. Moreover, he estimates that a conventional computer capable of winning more frequently against Advantage2 would need 300 times its power. Additionally, Quip was designed to resist attacks from hostile quantum computers, unlike many existing blockchains that might need software updates to become quantum-resistant.

Is a safer and more sustainable blockchain future tied to networks like Quip? The question is complicated, according to Olivier Ezratty of the Quantum Energy Initiative. While quantum computing may be less energy-intensive per computation, the costs of building, maintaining, and operating quantum hardware complicate the economic feasibility of scaling this approach. “The total energy cost might decrease, but at the expense of higher capital expenditure, including the energy required to manufacture D-Wave [quantum computers],” Ezratty explains.

Perez-Delgado is more hopeful. “I firmly believe that economic incentives for faster, cleaner crypto-mining will drive more adoption of this technology,” he asserts. Other companies are also exploring quantum proof-of-work projects, such as BTQ Technologies and Quandela, which develop quantum computers utilizing light, unlike Advantage2, which relies on tiny superconducting circuits.

The Quip team has broader aspirations. Dillion envisions the network evolving into a global distributed quantum computer, linking users with various quantum machines that could compete to solve diverse problems, similar to how Advantage2 currently competes with traditional computers. This development would democratize access to these rare and costly machines. To achieve this, the team is working on introducing another proof-of-work problem and integrating quantum computers from companies other than D-Wave.