Challenge Eleven has raised $20 million to construct defenses towards the existential menace that quantum computing poses to cryptocurrencies. The spherical valued the startup at $120 million.
The corporate has obtained backing from main corporations since its seed spherical in June 2025, together with crypto-native VC Variant Fund and quantum know-how fund Quantonation.
Challenge Eleven is getting ready for “Q-Day”. That is the theoretical occasion when quantum computer systems turn out to be highly effective sufficient to interrupt the encryption that protects the web and monetary methods.
Bitcoin, Ethereum, and most main blockchains depend on elliptic curve cryptography (ECC) for private and non-private key technology. A sufficiently highly effective quantum pc operating Scholl’s algorithm might theoretically reverse this course of.
This permits an attacker to empty the pockets the place the general public key has been uncovered.
The corporate estimates that roughly $718 billion value of Bitcoin saved in susceptible wallets was compromised.
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Challenge Eleven particularly works on the “post-quantum” infrastructure of current blockchains. The corporate’s flagship product, known as Yellow Pages, acts as a cryptographic registry that enables customers to signal messages proving they personal a susceptible Bitcoin tackle and hyperlink it to a quantum-secure identification.
This creates a “fallback” file of possession that can be utilized to get well funds if the principle community is compromised.
Is the quantum menace over-exaggerated?
As of right now, the consensus amongst cryptographers, authorities companies, and market analysts is that the upcoming menace of quantum computer systems destroying Bitcoin is overestimated.
Most authoritative opinions agree that the “Q-Day” occasion is not going to happen this yr (or anytime quickly).
That mentioned, Ethereum’s Buterin not too long ago warned that elliptic curve cryptography might find yourself wanting like this: compromised by quantum computing by 2028.
