Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years. The company believes this innovation puts it ahead in the race to unlock quantum computing’s vast potential.
Unlike classical computers, quantum systems could perform calculations in fields like medicine and chemistry that would otherwise take millions of years, although they also pose risks to current encryption standards.
The Majorana 1 chip relies on a particle called the Majorana fermion, theorised in the 1930s. Microsoft says its unique design makes the chip less error-prone than its competitors.
Despite having fewer qubits than chips from Google and IBM, the company argues that the lower error rates mean fewer qubits are needed for practical applications.
Microsoft’s development of Majorana 1 combines advanced materials like indium arsenide and aluminium, using a superconducting nanowire to observe and control the Majorana particles.
Fabricated at its labs in Washington and Denmark, the chip was described as a ‘high risk, high reward’ endeavour by Jason Zander, a senior Microsoft executive.
Quantum physicist Philip Kim from Harvard University praised the innovation, calling it an exciting step forward. While scaling up the technology remains a challenge, experts suggest Microsoft’s approach could lead to significant advancements in quantum computing.
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Google plans to introduce real-world quantum computing applications within five years, according to its head of quantum research, Hartmut Neven. The company’s prediction challenges Nvidia CEO Jensen Huang‘s estimate that practical quantum computing remains at least 15 to 30 years away. Google has been developing quantum technology since 2012 and recently announced a breakthrough that could accelerate the field.
Potential applications for quantum computing include advancements in materials science, drug discovery, and energy solutions. Google has already demonstrated quantum processors capable of solving complex problems far beyond the reach of traditional computers. A recent study published in Nature highlights new progress in quantum simulation, bringing the company closer to commercial viability.
The timeline for practical quantum computing remains uncertain, with predictions varying widely among experts. Nvidia’s scepticism caused a sharp drop in quantum-related stocks, but Google remains optimistic about achieving its goal. Governments and businesses continue to monitor quantum developments closely due to their potential impact on cybersecurity, finance, and healthcare.
The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.
At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper.
What is quantum computing?
Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.
For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications.
These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity so the story takes an interesting twist.
How does quantum computing relate to blockchain?
Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC)to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly.
Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.
Opportunities: Can crypto benefit from quantum computing?
While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain:
Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms.
Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps).
By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress.
How does quantum computing threaten cryptocurrency?
Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it:
Breaking public key cryptography Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds.
Mining oligopoly The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.
Dormant wallet risks Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.
With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.
Solutions: Quantum-resistant tokens and cryptography
Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations.
As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.
The quantum future for crypto
Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings.
The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.
Quantum computing stocks experienced a sharp decline on Wednesday following comments from Nvidia CEO Jensen Huang, who predicted practical quantum computers are still two decades away. His timeline dampened expectations in a sector already facing significant investment without broad applications.
Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ saw their shares plummet over 40%, with more than $8 billion in combined market value lost. Investment chief Ivana Delevska of Spear Invest, which holds Rigetti and IonQ shares, supported Huang’s prediction, noting it took Nvidia a similar period to develop accelerated computing.
The sector had previously surged due to a technological breakthrough at Google, with stocks rising at least threefold last year. Despite the optimism, revenue generation remains minimal, with IonQ valued at over $10 billion but expected to generate just $41.6 million in 2024 revenue.
Craig-Hallum analyst Richard Shannon suggested government contracts could drive future revenue, cautioning investors not to focus solely on current low earnings. He also warned quantum computing could eventually disrupt parts of classical computing, where Nvidia plays a leading role.
India solidified its global leadership in 2024, making remarkable strides in pharmaceuticals, biotechnology, defence, nuclear energy, and space exploration. Initiatives like the Production Linked Incentive (PLI) scheme and breakthroughs such as the indigenous antibiotic Nafithromycin propelled the pharmaceutical sector’s exports to USD 28 billion. Biotechnology expanded 13-fold over the past decade, achieving a valuation of USD 130 billion, with ambitions to hit USD 300 billion by 2030.
The nation’s defence sector reached unprecedented levels of self-reliance, recording indigenous production worth 15.24 billion USD and a 30-fold rise in exports. Achievements like the Agni-5 missile test and the deployment of advanced ballistic missile defence systems highlighted India’s strategic capabilities. In nuclear energy, capacity nearly doubled to 8,180 MW, with a roadmap to triple this by 2032 through projects like Bharat Small Reactors.
India’s space programme achieved significant milestones, including the approval of the Venus Orbiter Mission and Chandrayaan-4, as well as advancements in private sector contributions. The foundation of a second spaceport and the celebration of National Space Day underscored the sector’s growing prominence. Additionally, the solar mission Aditya-L1 made groundbreaking contributions to space weather predictions.
Infrastructure and emerging technologies further reinforced India’s position on the global stage. Developments such as the completion of a Hyperloop test track and the GNSS-enabled tolling system showcased futuristic planning. Quantum communication, AI, and blockchain innovations, including the Vishvasya platform, demonstrated India’s commitment to leading the next technological revolution.
If AI was the buzzword for 2023 and 2024, quantum computing looks set to claim the spotlight in the years ahead. Despite growing interest, much remains unknown about this transformative technology, even as leading companies explore its immense potential.
Quantum computing and AI stand as two revolutionary technologies, each with distinct principles and goals. Quantum systems operate on the principles of quantum mechanics, using qubits capable of existing in multiple states simultaneously due to superposition. Such systems can address problems far beyond the reach of classical computers, including molecular simulations for medical research and complex optimisation challenges.
AI and quantum computing intersect in areas like machine learning, though AI still depends on classical computing infrastructure. Significant hurdles remain for quantum technology, including qubit errors and scalability. The extreme sensitivity of qubits to external factors, such as vibrations and temperature, complicates their control.
Experts suggest quantum computers could become practical within 10 to 20 years. Classical computers are unlikely to be replaced, as quantum systems will primarily focus on solving tasks beyond classical capabilities. Leading companies are working to shorten development timelines, with advancements poised to transform the way technology is utilised.
Huge investments in quantum computing
Investments in quantum computing have reached record levels, with start-ups raising $1.5 billion across 50 funding rounds in 2024. Figure like this one nearly doubles the $785 million raised the previous year, setting a new benchmark. The growth in AI is partly driving these investments, as quantum computing promises to handle AI’s significant computational demands more efficiently.
Quantum computing offers unmatched speed and energy efficiency, with some estimates suggesting energy use could be reduced by up to 100 times compared to traditional supercomputers. As the demand for faster, more sustainable computing grows, quantum technologies are emerging as a key solution.
Microsoft and Atom Computing announce breakthrough
In November 2024, Microsoft and Atom Computing achieved a milestone in quantum computing. Their system linked 24 logical qubits using just 80 physical qubits, setting a record in efficiency. This advancement could transform industries like blockchain and cryptography by enabling faster problem-solving and enhancing security protocols.
Despite the challenges of implementing such systems, both companies are aiming to release a 1,000-qubit quantum computer by 2025. The development could accelerate the adoption of quantum technologies across various sectors, paving the way for breakthroughs in areas such as machine learning and materials science.
Overcoming traditional computing’s limitations
Start-ups like BlueQubit are transforming quantum computing into a practical tool for industries. The San Francisco-based company has raised $10 million to launch its Quantum-Software-as-a-Service platform, enabling businesses to use quantum processors and emulators that perform tasks up to 100 times faster than conventional systems.
Industries such as finance and pharmaceuticals are already leveraging quantum optimisation. Specialised algorithms are addressing challenges like financial modelling and drug discovery, showcasing quantum computing’s potential to surpass traditional systems in tackling complex problems.
Google among giants pushing quantum computing
Google has recently introduced its cutting-edge quantum chip, Willow, capable of solving a computational problem in just five minutes. Traditional supercomputers would require approximately 10 septillion years for the same task.
The achievement has sparked discussions about quantum computing’s link to multiverse theories. Hartmut Neven, head of Google’s Quantum AI team, suggested the performance might hint at parallel universes influencing quantum calculations. Willow’s success marks significant advancements in cryptography, material science, and artificial intelligence.
Commercialisation is already underway
Global collaborations are fast-tracking quantum technology’s commercialisation. SDT, a Korean firm, and Finnish start-up SemiQon have signed an agreement to integrate SemiQon’s silicon-based quantum processing units into SDT’s precision measurement systems.
SemiQon’s processors, designed to work with existing semiconductor infrastructure, lower production costs and enhance scalability. These partnerships pave the way for more stable and cost-effective quantum systems, bringing their use closer to mainstream industries.
Quantum technologies aiding mobile networks
Telefonica Germany and AWS are exploring quantum applications in mobile networks. Their pilot project aims to optimise mobile tower placement, improve network security with quantum encryption, and prepare for future 6G networks.
Telefonica’s migration of millions of 5G users to AWS cloud infrastructure demonstrates how combining quantum and cloud technologies can enhance network efficiency. The project highlights the growing impact of quantum computing on telecommunications.
Addressing emerging risks
Chinese researchers at Shanghai University have exposed the potential threats quantum computing poses to existing encryption standards. Using a D-Wave quantum computer, they breached algorithms critical to modern cryptographic systems, including AES-256, commonly used for securing cryptocurrency wallets.
Although current quantum hardware faces environmental and technical limitations, researchers stress the urgent need for quantum-resistant cryptography. New encryption methods are essential to safeguard digital systems against future quantum-based vulnerabilities.
Quantum computing promises revolutionary capabilities but must overcome significant challenges in scaling and stability. Its progress depends on interdisciplinary collaboration in physics, engineering, and economics. While AI thrives on rapid commercial investment, quantum technology requires long-term support to fulfil its transformative potential.
Google’s latest quantum chip, Willow, has stirred discussions in the cryptocurrency world. Capable of completing a computation in minutes that would take supercomputers billions of years, Willow raised concerns over its potential to breach Bitcoin’s encryption, which secures the $2 trillion blockchain. Bitcoin’s price briefly dipped after the announcement but quickly recovered.
While the crypto community acknowledges the theoretical risks of quantum computing, panic remains subdued. Developers, including Ethereum’s founder Vitalik Buterin, suggest that blockchains can be updated to resist quantum threats, just as Bitcoin was improved with the Taproot upgrade in 2021.
For now, the threat seems distant. Willow’s achievement, though impressive, lacks immediate commercial applications. Experts agree the crypto industry has time to adapt before quantum computing poses a genuine risk.
Alphabet’s stock jumped 5% on Tuesday after the company unveiled Willow, a groundbreaking chip that addresses a major hurdle in quantum computing. Introduced on Monday, Willow solved a problem in five minutes that would take classical computers longer than the age of the universe. This breakthrough brings quantum computing closer to practical applications in science, medicine, and finance.
Quantum computers, powered by qubits, promise incredible speed but face challenges with error rates that grow with scale. Google’s Willow chip reduces errors exponentially by stringing qubits together in a way that allows for real-time error correction. This innovation marks a significant step toward making quantum computing reliable and commercially viable.
While the technology is still in its infancy, experts believe Willow could drive breakthroughs across industries. Alphabet’s shares, up 25% this year, outpaced market expectations, with investors optimistic about the potential impact of quantum computing on the company’s future. Other tech leaders like Microsoft and Quantinuum are also advancing in the race to commercialise quantum systems.
In the quantum computing world, Google’s Quantum AI lab is at the forefront, pioneering a new era where the rules of quantum mechanics dictate the dance of data. Unlike the binary world of classical computing, which is all about ones and zeros, quantum computing introduces qubits. These aren’t just your average bits; they can exist in multiple states simultaneously, thanks to the whims of superposition and entanglement, making them the rock stars of the computational universe.
Enter Willow, Google’s latest quantum chip, which could be described as a virtuoso in the orchestra of quantum technology. Willow isn’t just another chip; it’s a leap towards solving some of humanity’s most complex puzzles. This chip has mastered the art of error correction, a challenge that’s been the quantum computing community’s white whale for nearly three decades. With Willow, errors don’t just decrease; they do so exponentially as more qubits join the ensemble.
Meet Willow, our newest quantum chip. In under 5 minutes, it's able to perform a benchmark computation that would take one of today’s fastest supercomputers 10 septillion years. (That's greater than the age of the universe!) Learn more ↓ https://t.co/6UnDvVt7v2
But Willow’s talents don’t stop at error correction. In a performance that would make even the universe blink in disbelief, Willow completed a computation in under five minutes that would take the world’s fastest supercomputers a mind-boggling ten septillion years. To put that into perspective, that’s longer than the age of our universe, suggesting that Willow might be tapping into some multiversal jazz.
The magic of Willow is crafted in Google’s specialised quantum lab in Santa Barbara, where every component from qubit gates to the chip’s architecture is meticulously tuned for harmony. Willow boasts 105 qubits, each a note in this symphony of computation, offering both numbers and quality. Focusing on quality over quantity ensures that Willow isn’t just another player but a lead in the orchestra.
Willow’s performance sets the stage for the next act: to conduct a computation beyond the reach of classical computers and relevant to real-world applications. Whether it’s accelerating drug discovery, enhancing AI, or solving energy crises, Willow and its successors are poised to turn theoretical quantum wonders into practical symphonies.
The journey with Willow is just beginning, and Google invited the curious minds of researchers, engineers, and developers to join this quantum odyssey. With open-source software and educational platforms like Coursera, Google aims to democratise quantum computing, hoping to inspire the next generation to compose their quantum symphonies, solving problems that today’s classical computers can only dream of.
Microsoft and Atom Computing have announced a significant breakthrough in quantum computing that could revolutionise blockchain mining. The two companies developed a quantum system with 24 entangled logical qubits using just 80 physical qubits, setting a new record in quantum efficiency. This achievement could eventually lead to a transformation in the world of proof-of-work (PoW) blockchain mining, as quantum systems become capable of outperforming traditional mining methods.
The advancement is especially notable for its potential to impact the security of blockchain networks like Bitcoin, which rely on SHA-256 encryption. Quantum computers, by applying Grover’s Algorithm, could significantly speed up the process of solving the PoW puzzle, threatening the security measures that have safeguarded blockchain technology. While Grover’s Algorithm has shown promise in small-scale experiments, it has yet to be proven on the large scale required for cracking SHA-256 encryption.
Though the timeline for practical quantum mining remains uncertain, with experts predicting it could take 10 to 50 years, Atom Computing and Microsoft aim to bring a 1,000-qubit quantum computer to market as early as 2025. This breakthrough could drastically shorten the path to quantum systems capable of rivaling traditional mining rigs.
