quantum computing Archives | Digital Watch Observatory

Bitcoin moves closer to quantum resistance with BIP-360

BTQ Technologies has deployed Bitcoin Improvement Proposal BIP-360 on its Bitcoin Quantum Testnet v0.3.0, marking the first live test of the proposal. The upgrade introduces a quantum-resistant transaction model, Pay-to-Merkle-Root, designed to strengthen Bitcoin’s long-term security.

BIP-360 focuses on mitigating a vulnerability linked to Taproot’s key-path spending mechanism, which can expose public keys on-chain. Such exposure may become a risk if future quantum computers are capable of exploiting cryptographic weaknesses using advanced algorithms.

The testnet adds new consensus rules, post-quantum signatures, and full transaction lifecycle testing. Faster one-minute block times and adjusted fee structures have been introduced to accommodate larger and more complex signatures.

Growing global attention on quantum threats adds urgency to the development. US, EU, and Canadian authorities are setting timelines for post-quantum cryptography to protect future system security.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UK Government commits up to £2 billion to quantum technologies

The UK Government has announced up to £2 billion in funding for quantum technologies, including more than £1 billion over the next four years, confirmed by UKRI in December 2025, and a new procurement programme called ProQure designed to support the scaling of quantum computing across the UK.

The announcement is being billed as the country’s ‘Quantum Leap’, positioning the UK as a first mover in quantum commercialisation.

The funding is distributed across several areas: over £500 million for quantum computing to help companies scale and develop applications in pharmaceuticals, financial services, and energy; £125 million for quantum networking; and £205 million for quantum sensing and navigation, with dedicated applications in medical diagnostics, greenhouse gas monitoring, and ultra-secure communications.

A further £13.8 million will be injected into the UK’s five National Quantum Research Hubs, with an additional £90 million for quantum infrastructure and £20 million for skills and commercialisation programmes.

techUK welcomed the announcement, noting that the UK is already home to 11% of the world’s quantum startups and has attracted 12% of global quantum private equity investment.

The trade association highlighted the ProQure procurement programme as a step in the right direction, but cautioned that sustained, long-term private investment will be essential to support deep-tech companies through lengthy development cycles.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Britain targets quantum leadership with £1bn investment

UK Secretary of State for Science, Innovation and Technology Liz Kendall has announced a £1bn funding package to boost UK quantum computing and retain domestic talent.

The initiative reflects growing concern over the country’s ability to compete globally, particularly after the US established dominance in AI.

Officials emphasised the need to retain British startups, engineers, and researchers who often relocate abroad in search of better funding and scaling opportunities. The UK produces top talent, but Google and OpenAI own many leading firms.

The investment will support the development of large-scale quantum computers for use across science, industry, and the public sector. Another £1bn will fund real-world use in finance, pharmaceuticals, and energy.

The government aims to build a fully operational domestic quantum system by the early 2030s.

Quantum computing uses qubits that can exist in multiple states simultaneously, enabling far greater computational power than classical systems. Fully fault-tolerant machines are still in development, but the technology could drive advances in drug discovery, materials science, and complex modelling.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Quantum-safe security upgrades SIM and eSIM cards

Thales has successfully demonstrated a world-first capability that prepares 5G networks for the era of quantum computing. The test proved that SIM and eSIM cards can be remotely upgraded to support post-quantum cryptography, boosting security without disrupting services or user experience.

The breakthrough highlights the potential of crypto-agile networks to evolve securely as quantum threats emerge.

Replacing millions of devices is impractical, so Thales enables operators to deploy quantum-safe algorithms directly to existing devices. Remote upgrades preserve data and connectivity while instantly boosting security, keeping 5G networks resilient and trusted.

The demonstration reinforces Thales’ leadership in post-quantum cryptography, with dedicated research teams developing quantum-resistant methods and contributing to international standards, including NIST initiatives.

Operators can now protect long-term investments, secure critical services, and prepare for the next generation of quantum computing without operational disruptions.

Thales’ approach offers a practical roadmap for telecoms to adopt quantum-safe security today, ensuring continuity, trust, and resilience across mobile networks as digital threats evolve.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Quantum Computing transforms port scheduling and maritime logistics optimization

Quantum computing is emerging as a complementary technology in maritime shipping, an industry defined by constant constraints, disruptions, and interdependent decisions. As global trade networks grow more complex, optimisation challenges in ports and logistics systems are becoming increasingly complex to solve with classical computing alone.

In hybrid workflows, classical systems manage data and operations, while quantum routines tackle the most computationally intensive bottlenecks.

The main difficulty in maritime logistics is not the volume of data, but the exponential growth in the number of possible decisions as constraints accumulate. Real-world variables such as weather, labour rules, emissions targets, congestion, and intermodal coordination make planning significantly more complex.

Problems, including berth allocation, crane sequencing, vehicle routing, fleet scheduling, and container loading, often require simplifications. Under time pressure, planners frequently settle for “good enough” solutions.

Quantum computing is particularly suited to dense, constraint-heavy optimisation tasks. In hybrid systems, it can improve replanning during disruptions and generate higher-quality scheduling options.

Early experimentation is underway in major ports, including initiatives in Los Angeles and Dubai. These pilots focus on measurable operational gains and technical readiness.

While hardware continues to mature, software accessibility remains a key barrier. Maritime leaders are encouraged to invest in modelling capabilities and integration planning to prepare for the gradual adoption of quantum.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Five lesser-known SPACs tapping AI, quantum and digital asset innovation

In a recent episode of Ticker Take, financial analysts spotlight five SPACs that fly under the radar but are linked with next-generation tech sectors such as quantum computing, artificial intelligence infrastructure, tokenised assets and genomics/health tech.

The list reflects renewed investor interest in SPACs as an alternative route to public markets for early-stage innovators outside mainstream IPO pipelines.

Crane Harbor Acquisition Corp (CHAC) is targeting Xanadu Quantum Technologies, a Canadian quantum computing company planning to go public via SPAC, aiming to accelerate quantum hardware development.

Churchill Capital Corp X (CCCX) is set to merge with Infleqtion, a firm building quantum computers and precision sensing systems, in an ~$1.8 billion deal.

Cantor Equity Partners II (CEPT) is associated with Securitize, a digital securities platform enabling regulated tokenisation of real-world assets (including potentially AI/tech-linked assets).

Willow Lane Acquisition (WLAC) is linked to Boost Run, an AI-enabled delivery-optimization platform, offering exposure to logistics tech with generative and predictive capabilities.

Perceptive Capital Solutions Corp (PCSC) is connected to Freenome, a company focused on AI-driven early cancer detection and genomics, blending AI with life-science innovation.

Together, these SPAC deals illustrate how blank-check vehicles are resurfacing in markets for AI, quantum and digital transformation, offering investors early access to companies that might otherwise take longer to reach public markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Bitcoin cryptography safe as quantum threat remains distant

Quantum computing concerns around Bitcoin have resurfaced, yet analysis from CoinShares indicates the threat remains long-term. The report argues that quantum risk is an engineering challenge that gives Bitcoin ample time to adapt.

Bitcoin’s security relies on elliptic-curve cryptography. A sufficiently advanced quantum machine could, in theory, derive private keys using Shor’s algorithm, which requires millions of stable, error-corrected qubits, and remains far beyond current capability.

Network exposure is also limited. Roughly 1.6 million BTC is held in legacy addresses with visible public keys, yet only about 10,200 BTC is realistically targetable. Modern address formats further reduce the feasibility of attacks.

Debate continues over post-quantum upgrades, with researchers warning that premature changes could introduce new vulnerabilities. Market impact, for now, is viewed as minimal.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Experts debate when quantum computers could break modern encryption

Scientists are divided over when quantum computers will become powerful enough to break today’s digital encryption, a moment widely referred to as ‘Q–Day’.

While predictions range from just two years to several decades, experts agree that governments and companies must begin preparing urgently for a future where conventional security systems may fail.

Quantum computing uses subatomic behaviour to process data far faster than classical machines, enabling rapid decryption of information once considered secure.

Financial systems, healthcare data, government communications, and military networks could all become vulnerable as advanced quantum machines emerge.

Major technology firms have already made breakthroughs, accelerating concerns that encryption safeguards could be overwhelmed sooner than expected.

Several cybersecurity specialists warn that sensitive data is already being harvested and stored for future decryption, a strategy known as ‘harvest now, decrypt later’.

Regulators in the UK and the US have set timelines for shifting to post-quantum cryptography, aiming for full migration by 2030-2035. However, engineering challenges and unresolved technical barriers continue to cast uncertainty over the pace of progress.

Despite scepticism over timelines, experts agree that early preparation remains the safest approach. Experts stress that education, infrastructure upgrades, and global cooperation are vital to prevent disruption as quantum technology advances.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

MIT advances cooling for scalable quantum chips

MIT researchers have demonstrated a faster, more energy-efficient cooling technique for scalable trapped-ion quantum chips. The solution addresses a long-standing challenge in reducing vibration-related errors that limit the performance of quantum systems.

The method uses integrated photonic chips with nanoscale antennas that emit tightly controlled light beams. Using polarisation-gradient cooling, the system cools ions to nearly ten times below standard laser limits, and does so much faster.

Unlike conventional trapped-ion systems that depend on bulky external optics, the chip-based design generates stable light patterns directly on the device. The stability improves accuracy and supports scaling to thousands of ions on a single chip.

Researchers say the breakthrough lays the groundwork for more reliable quantum operations and opens new possibilities for advanced ion control, bringing practical, large-scale quantum computing closer to reality.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Quantum computing milestone achieved by Chinese researchers

Chinese researchers have reported a significant advance in quantum computing using a superconducting system. The Zuchongzhi 3.2 computer reached the fault-tolerant threshold, at which point error correction improves stability.

Pan Jianwei led the research and marks only the second time globally that this threshold has been achieved, following earlier work by Google. The result positions China as the first country outside the United States to demonstrate fault tolerance in a superconducting quantum system.

Unlike Google’s approach, which relies on extensive hardware redundancy, the Chinese team used microwave-based control to suppress errors. Researchers say this method may offer a more efficient path towards scalable quantum computing by reducing system complexity.

The breakthrough addresses a central challenge in quantum computing: qubit instability and the accumulation of undetected errors. Effective error management is crucial for developing larger systems that can maintain reliable quantum states over time.

While practical applications remain distant, researchers describe the experiment as a significant step in solving a foundational problem in quantum system design. The results highlight the growing international competition in the quest for scalable, fault-tolerant quantum computers.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!