Protecting Blockchain Networks from Quantum Threats
A Framework for Quantum Resistance
Source: LACChain
We are very glad to communicate that our paper “Quantum Resistance in Blockchain Networks” has been published by Scientific Reports journal from Springer-Nature and is publicly available online. This represents a very rewarding recognition to the work that we began in 2020 in collaboration with Quantinuum and Tecnologico de Monterrey seeking to develop a framework that allows to help protect blockchain networks from attacks by large and robust quantum computers.
As the paper claims “the advent of quantum computing threatens blockchain protocols and networks because they utilize non-quantum resistant cryptographic algorithms. When quantum computers become robust enough to run Shor’s algorithm on a large scale, the most used asymmetric algorithms, utilized for digital signatures and message encryption, such as RSA, (EC)DSA, and (EC)DH, will be no longer secure. Quantum computers will be able to break them within a short period of time”.
Our work is pioneer in proposing a five-step end-to-end framework applicable to most blockchain networks that does not require critical modifications of the baseline protocols to add a post-quantum cryptographic layer that ensures resistance to attacks by quantum computers. The joint team has also developed a scalable implementation for Ethereum-based networks which has been deployed in LACChain, that uses Hyperledger Besu as the blockchain protocol.
Marcos Allende Lopez, CTO of LACChain and leader of this work claimed that “today the blockchain community is focused on urgent needs such as scalability and interoperability. However, considering that there are trillions of dollars in value stored in blockchain networks and that according to Boston Consulting Group tokenization is expecting to become a $16 trillion market in 2030, it is irresponsible to not have a plan to protect decentralized ledgers from attacks by quantum computers that will be able to discover private keys and steal assets. Despite it is uncertain when large and robust quantum computers will be ready to accomplish that, it is very plausible that these machines are used silently at the beginning for hacking strategically without being spotted.”
Our open-source development presents three alternatives for the blockchain verification of transactions signed with the Falcon-512 NIST-compliant post-quantum signatures: (i) implementing the verification code in Solidity which constitutes – to our knowledge – the first smart contract capable of verifying post-quantum signatures, (ii) implementing solidity instruction in the Solc compiler and corresponding EVM opcode, and (iii) refactoring the EVM opcode Java from the EVM virtual machine into a pre-compiled contract.
The team is now working on an EIP to take this discussion to a broader forum within the Ethereum and Hyperledger communities. LACChain is looking for entities and individuals that want to join us in this mission.
Professor Salvador E. Venegas-Andraca, of Tecnologico de Monterrey, commented: “Quantum technology is a give-and-take discipline: on the one hand, quantum computers together with Shor's algorithm will eventually become a vulnerability to public key cryptography protocols and other technologies used in digital data protection. On the other hand, we can use quantum technology to increase the security of current and future data. The latter is indeed the core of our paper: to use quantum technology to protect current and future blockchains from quantum attacks.”.
Duncan Jones, Head of Cybersecurity at Quantinuum, added: “The most valuable digital assets demand the highest levels of security. By combining quantum-safe algorithms with quantum-computer-hardened keys from our Quantum Origin platform, this work demonstrates a significant security improvement for blockchain systems.”.
About LACChain
LACChain is a global alliance that brings together various stakeholders in the blockchain space, led by the Innovation Lab of the Inter-American Development Bank Group (IDB Lab), with the goal of developing the blockchain ecosystem in Latin America and the Caribbean. Its mission is to accelerate the adoption of blockchain technology in the region, promoting innovation, reducing economic, social, and gender inequalities, improving job quality and security, and fostering financial inclusion, consumer protection, and market integrity. To achieve these goals, LACChain focuses on two main pillars: community and infrastructure. Through its initiatives, LACChain aims to empower people, improve digital security, build trust in the digital economy and society, and foster energy efficiency, all while supporting inclusive growth, well-being, human rights, and fundamental values. For more information about LACChain and its initiatives, please visit their website at www.lacchain.net.
About Tecnologico de Monterrey
Tecnologico de Monterrey was founded in 1943 thanks to the vision of Don Eugenio Garza Sada and a group of entrepreneurs who formed a non-profit association called Enseñanza e Investigación Superior, A. C. Tecnologico de Monterrey is a private, non-profit, independent institution with no political and religious affiliations. The work of Tecnológico de Monterrey on all of its campuses is supported by civil associations made up of a numerous group of outstanding leaders from all over the country who are committed to quality in higher education. Tecnologico de Monterrey is widely recognized as one of the most prestigious universities in Latin America and it ranks among the top 200 universities in the world according to QS World University Rankings.
About Quantinuum
Quantinuum is one of the world’s largest integrated standalone quantum computing companies, formed by the combination of Honeywell Quantum Solutions’ world-leading hardware and Cambridge Quantum’s class-leading middleware and applications. Science-led and enterprise driven, Quantinuum accelerates quantum computing and the development of applications across chemistry, cybersecurity, finance, and optimization. Its focus is to create scalable and commercial quantum solutions to solve the world’s most pressing problems, in fields such as energy, logistics, climate change, and health. The company employs over 480 people including 350 scientists, at nine sites in the US, Europe, and Japan.
About Quantinuum
Quantinuum, the world’s largest integrated quantum company, pioneers powerful quantum computers and advanced software solutions. Quantinuum’s technology drives breakthroughs in materials discovery, cybersecurity, and next-gen quantum AI. With over 500 employees, including 370+ scientists and engineers, Quantinuum leads the quantum computing revolution across continents.
Broomfield, Colorado, November 19th, 2024 – Quantinuum, the world’s largest and leading integrated quantum computing company, has been recognized by Fast Company as a winner in the 2024 Next Big Things in Tech Awards in the Computing, Chips, and Foundational Technology category. In its fourth year, the list honors technology breakthroughs that promise to shape the future of our society. This prestigious accolade underscores Quantinuum’s advancements with its System Model H2 quantum processor, the latest in a series of groundbreaking announcements.
Quantinuum’s H2 Quantum Processor: A Breakthrough in Quantum Computing
Launched in 2023 and upgraded in 2024, the H2 quantum processor represents a major advancement in quantum computing. As the most benchmarked system with the highest quantum volume in the industry, H2 is a testament to Quantinuum’s path in leading the world to universal, fully fault tolerant quantum computing future.
"The System Model H2 represents a significant leap in computing, demonstrating capabilities that can no longer be fully simulated by classical computers." said Dr. Rajeeb Hazra, President & CEO of Quantinuum. "Its unique design has led to significant achievements, including the creation of 12 reliable logical qubits and a 100-fold enhancement in a key quantum computing benchmark, Random Circuit Sampling (RCS). These results have made our systems integral to hybrid quantum computing workflows, combining our high performing quantum systems with leading AI and HPC solutions.”
These innovations have the potential to revolutionize fields like chemistry, drug discovery, and financial forecasting, demonstrating the far-reaching implications of Quantinuum's work.
Roadmap to Universal, Fully Fault Tolerant Quantum Computing
Quantinuum recently unveiled its accelerated roadmap to achieve universal fault-tolerant quantum computing in 2029. This integrated path not only emphasizes hardware advancements but also focuses on critical software capabilities that are essential for delivering full-stack quantum computing and hybrid quantum computing solutions.
Quantinuum’s next system, Helios, will launch in 2025 with 96 qubits and will help to unlock scientific advances that will surpass classical computing results.
About Quantinuum
Quantinuum, the world’s largest integrated quantum computing company, pioneers powerful quantum computers and advanced software solutions. Quantinuum’s technology drives breakthroughs in materials discovery, cybersecurity, and next-gen quantum AI. With over 500 employees, including 370+ scientists and engineers, Quantinuum leads the quantum computing revolution across continents.
- First successful delivery of quantum tokens using commercial QKD hardware, demonstrating fast transaction verification at the point of exchange - a crucial step toward quantum-enhanced financial security and a major advance for QKD.
- Quantum tokens are designed to provide unforgeability, privacy, and fast settlement, in a single financial instrument. No previous technology can deliver these three combined benefits.
- In the world’s first implementation using off-the-shelf hardware, quantum tokens were transmitted across 10km of fibre in Tokyo, using commercial quantum key distribution (QKD) devices provided by NEC*.
- This is a pivotal step towards the deployment of ultra-high-security quantum tokens in use cases such as tokenized asset security and high-speed trading.
Tokyo, Japan and Broomfield, Colorado - November 18th, 2024 – In a long anticipated trial, Quantinuum ("Quantinuum", Head Office: Broomfield, Colorado, U.S.A., CEO: Rajeeb Hazra), together with Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) and NEC ("NEC", Head Office: Tokyo, President and CEO: Takayuki Morita) today announced the successful delivery of quantum tokens across a 10km fibre-optic network in Japan. This is the first time such a delivery has been accomplished.
Quantum tokens are a new financial instrument that take advantage of the properties of quantum physics to meet the robust demands of asset trading without the communication overheads required by traditional financial systems. Quantum tokens are transmitted across fibre-optic quantum key distribution (QKD) networks, which are rapidly expanding around the globe. Today's announcement with Mitsui demonstrates growing industry recognition of quantum tokens' potential in financial services.
Ilyas Khan, Founder and Chief Product Officer at Quantinuum, said: “The original motivation for quantum communications was the exchange of money, as envisaged by Stephen Wiesner. Today, we have demonstrated real-world security enhancements for financial systems using off-the-shelf quantum communications hardware. This opens the door to a new era in quantum-enhanced security with wide applicability, providing commercial organisations with something concrete to utilise.”
Koji Naniwada, Deputy General Manager, Quantum Innovation Dept. at Mitsui, said: “Quantum tokens will increase the security of digital assets, while improving transaction performance and maintaining privacy. These topics are critical for our customers and partners in the financial sector and this demonstration is a valuable outcome of our partnership with Quantinuum.”
Naoki Ishida, Director with the Trading and Service Solution Department at NEC, said: “We are the first to provide a platform for realizing a quantum token system using NEC’s quantum key distribution (QKD) devices. Based on the results of this trial between Mitsui & Co. and Quantinuum, we will continue to work towards the social implementation of quantum cryptography technology.”
Quantum tokens are designed to use quantum physics to prevent forgery, while ensuring transactions can be settled near-instantly, whereas traditional payments systems rely on double-entry bookkeeping to prevent double-spending of funds. This adds time, overhead and risk to every transaction, as digital systems are consulted to confirm funds are available and to settle transactions.
Quantum tokens instead rely on the no-cloning theorem of quantum physics to prevent forgeries and double-spending. Only the intended recipient will receive the correct token data, which can only be spent at one location in the future. This enables near-instant transaction settlement by removing the need to check multiple systems or wait for network confirmations.
As demonstrated in Quantinuum’s recent work with HSBC, securing digital assets in the quantum-age is growing in urgency. The financial sector is increasingly looking to quantum technology to solve these complex problems with the power of nature.
Learn more about this new frontier of financial security, powered by quantum, in our whitepaper.
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Note:
(*) The equipment provided by NEC was partially supported by results from Japan’s Ministry of Internal Affairs and Communications’ (MIC) “Research and development for construction of a global quantum cryptography network”(JPJ008957) under “R&D of ICT Priority Technology Project” (JPMI00316) and Japan’s Cabinet Office’s "Photonics and Quantum Technology for Society 5.0" project under the Cross-ministerial Strategic Innovation Promotion Program (SIP).
About Mitsui
Mitsui & Co. is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries.
The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.
Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition.
Visit https://www.mitsui.com/jp/en/index.html for more information.
About Quantinuum
Quantinuum, the world’s largest integrated quantum company, pioneers powerful quantum computers and advanced software solutions. Quantinuum’s technology drives breakthroughs in materials discovery, cybersecurity, and next-gen quantum AI. With over 500 employees, including 370+ scientists and engineers, Quantinuum leads the quantum computing revolution across continents.
About NEC Corporation
NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at http://www.nec.com.