Project Eleven Offers $84,000 Prize To Test Quantum Threat To Bitcoin

Project Eleven, a quantum computing research firm, has launched a significant challenge known as the “Q-Day Prize.” This competition offers 1 Bitcoin, valued at approximately $84,000 at the time of launch, to anyone who can successfully crack a substantial portion of a Bitcoin private key using a quantum computer within the next year. The primary goal of this challenge is to assess the real threat that quantum computing poses to Bitcoin’s security, which is currently based on elliptic curve cryptography (ECC).

Project Eleven highlights a critical concern: over 10 million Bitcoin addresses have already exposed their public keys. If quantum computers advance to the point where they can break these keys, the exposed addresses could be at risk. This amounts to around 6 million Bitcoin, or nearly $500 billion, potentially in jeopardy. The challenge aims to provide a benchmark for the actual risk rather than relying on speculation. The objective is to push the crypto world towards developing quantum-resistant solutions before it becomes a pressing issue.

The rules of the Q-Day Prize are straightforward: participants must use Shor’s algorithm on a real quantum computer to crack parts of an ECC key. No hybrid methods with classical computers are allowed; the challenge requires pure quantum computing power. Even breaking a few bits of a key would be a monumental achievement, as no real-world ECC key has ever been successfully broken before. The first person to accomplish this feat will make history in the field of cryptography.

Currently, quantum computers are not yet capable of breaking Bitcoin’s cryptography. Experts estimate that it would require around 2,000 logical qubits with error correction to break a 256-bit ECC key. The most advanced chips, such as IBM’s Heron and Google’s Willow, can handle 156 and 105 qubits, respectively. However, with tech giants like IBM, Google, and Amazon providing access to quantum computing resources, the technology is rapidly advancing. It is only a matter of time before quantum computers reach the necessary capabilities to pose a real threat to Bitcoin’s security.

The cryptocurrency community has mixed opinions on the quantum threat. Bitcoin advocate Jameson Lopp stated in March that the threat of quantum computing is still “unanswerable.” While it is not an immediate crisis, given the difficulty of making changes to Bitcoin’s core code, it is prudent to start preparing. Tether CEO Paolo Ardoino acknowledges the concern but remains confident that quantum-proof Bitcoin addresses will be developed well before any real danger arises.

In summary, the Q-Day Prize is more than just a competition to break cryptographic keys; it is a call to action for the crypto world to prepare for the future of technology. Whether or not someone successfully cracks a key, this challenge could drive the development of stronger, future-proof security measures, benefiting the entire cryptocurrency ecosystem.