A startup collaborating with D-Wave, a quantum computing firm, has developed a novel crypto mining testnet that swaps Bitcoin’s hash-based computations for optimization challenges better suited to quantum systems.
Postquant Labs introduced the first publicly accessible quantum-classical blockchain testnet on Thursday, named Quip Network. This network enables cryptocurrency mining using both quantum computers and traditional CPUs and GPUs. Instead of competing over hash calculations like in Bitcoin mining, participants solve optimization problems.
“Bitcoin involves solving what’s called a hashcash problem,” explained Richard Carback, CTO and co-founder of Postquant Labs, to Decrypt. “We’re focusing on finding a specific Ising model that aligns with a given energy target—a task much harder for classical computers but easily handled by quantum systems at higher speeds.”
The testnet is operational with its first quantum subnet developed in partnership with D-Wave Systems, utilizing their advanced Advantage2™ annealing quantum computers. The Quip Network is open-source and accessible to all.
Initiated in 2024, Postquant Labs specializes in quantum computing software and protocols. It partnered with Burnaby-based D-Wave Systems for parts of the Quip Network’s Proof-of-Work process on D-Wave’s quantum annealing processors.
Miners in Quip Network tackle Ising model optimization problems—a mathematical framework where solving a problem equates to finding the lowest-energy state of interacting binary variables. Successful miners earn QUIP tokens, intended for renting time on network-connected quantum computers, as explained by Colton Dillion, CEO and co-founder of Postquant Labs. He likened this to Bittensor’s TAO network, which rewards users for providing AI models and computational resources.
Postquant also claims their model could lower the energy needed for block mining, addressing concerns over Bitcoin’s electricity consumption due to its reliance on extensive machine computations.
“For one block, it takes roughly 13 watts to mine with a quantum computer—equivalent to an hour of using a light bulb,” noted Dillion. Despite this, quantum hardware remains less accessible than traditional mining gear. While GPUs are widely used for gaming and crypto mining, quantum systems are mainly found in corporate research labs and universities.
Trevor Lanting, chief development officer at D-Wave Systems, views their quantum processors as accelerators for specific tasks rather than replacements for classical hardware, citing their use in business operations and logistics on the Leap platform. He anticipates varied commercialization rates across technologies.
Quantum computing also poses long-term security challenges. Researchers warn of “Q-Day,” when a quantum computer could break public-key cryptography used globally, potentially compromising systems like Bitcoin and Ethereum that rely on elliptic curve cryptography.
“Q-Day garners attention as it represents an industry milestone,” Lanting remarked to Decrypt. He expressed greater interest in quantum chemistry for gate-model applications.
Postquant intends to use a future network iteration to assess progress toward breaking elliptic curve cryptography, which secures Bitcoin wallets. “Continue mining Bitcoin with one of our post-quantum wallets and stay updated on developments,” advised Carback to Decrypt.