Imagine a future where lightning-fast quantum computers could crack the very code that protects Bitcoin and its staggering $1.7 trillion in value. That day might seem distant, but a new Bitcoin bounty is actively investigating just how real—and how soon—this threat could become.

Project 11, a quantum computing research group, turned up the heat on Wednesday by announcing a significant challenge: a 1 BTC prize—around $85,000 at current prices—awaits the first team capable of using a quantum computer to break a simpler version of Bitcoin’s encryption, known as elliptic curve cryptography (ECC).

As Project 11 succinctly put it in a post on X, “Bitcoin’s security hinges on elliptic curve cryptography. Quantum computers, wielding Shor’s algorithm, are poised to eventually crack it.” They added, “We’re using this prize to understand just how pressing this vulnerability is.”

The “QDay Prize,” as it’s called, is officially open until April 5, 2026, welcoming participation from both individual researchers and teams eager to tackle this cryptographic puzzle.

Established in 2024 by Alex Pruden and Conor Deegan, Project 11 is deeply engaged in exploring the evolving relationship between quantum computing and cryptography, specifically investigating the potential threats these advancements pose to blockchain technology.

To facilitate the challenge, Project 11 has created a range of simplified ECC keys, from a mere 1-bit up to 25-bits. Participating teams will need to prove their quantum cracking abilities on a key of their choosing, such as successfully breaking a 4-bit key as a starting point. It’s important to note that this simplified encryption is significantly less complex than Bitcoin’s robust 256-bit encryption.

While elliptic curve cryptography is a cornerstone of blockchain technology due to its efficiency and strong security in the face of traditional computers, cybersecurity experts are sounding the alarm. They warn that quantum computers could dismantle this security by overcoming the mathematical hurdles that currently safeguard it. And if a breakthrough were to occur against Bitcoin’s actual cryptography, the potential reward would be astronomically higher than the 1 BTC contest prize – think more along the lines of gaining access to vast Bitcoin holdings.

“Let’s be clear, this isn’t about actually ‘breaking’ Bitcoin,” Pruden clarified in another post on X. He emphasized the existing stakes, stating, “The incentive is already massive for anyone possessing a quantum computer: use it to create a fraudulent signature and potentially siphon funds from Bitcoin addresses that have publicly visible keys.”

Quantum computers operate on completely different principles—quantum mechanics—allowing them to tackle computational problems that are simply impossible for even the most powerful conventional computers. This groundbreaking capability is what fuels the concern for Bitcoin, as it raises the specter of breaking the encryption safeguarding users’ valuable private keys.

What’s even more unsettling is the speed. While today’s supercomputers would require an unimaginable amount of time—eons—to crack Bitcoin’s encryption, a sufficiently advanced quantum computer could, hypothetically, achieve the same feat in mere minutes.

It’s not just Bitcoin facing this potential future. Developers across the blockchain landscape are actively preparing for the quantum era. For example, in January, Solana developers rolled out “Solana Winternitz Vault,” a quantum-resistant upgrade that uses hash-based signatures to create fresh keys for each transaction, aiming to shield user funds from quantum threats. Similarly, in March 2024, Ethereum’s co-founder, Vitalik Buterin, put forward a proposal for a hard fork, a significant network update, designed to safeguard Ethereum against similar quantum vulnerabilities.

“While we believe a quantum break of Bitcoin hasn’t occurred yet, the truth is, we’re uncertain about how far off that reality might be,” Pruden admitted. “To get ready, we urgently need a strategy. And that strategy must be built on solid, factual understanding.”

Even though the QDay Prize challenge is focused on a significantly simplified form of Bitcoin’s encryption, Project 11 emphasizes that it’s a vital early indicator of the challenges ahead.

“This is just the beginning,” Project 11 concluded. “If someone manages to crack even a 5-bit key, it would be a monumental step forward.” They added, “Yes, it’s a far cry from Bitcoin’s 256-bit keys, but quantum computing is advancing rapidly. We need concrete data to understand when these advancements will truly threaten Bitcoin’s security.”

Edited by Andrew Hayward