The cryptocurrency market is facing an existential challenge – quantum computers. In a shocking move, the research project Project 11 has just offered a reward of 1 BTC (equivalent to nearly $85,000) for any individual or group that can break a simplified version of Bitcoin's encryption using a quantum computer. Could this be an early warning for the day when blockchain is compromised?



Quantum computer – the 'destroyer' of current encryption?


The core security of Bitcoin lies in the Elliptic Curve Cryptography (ECC) algorithm – an extremely efficient and secure form of encryption against classical computers. However, quantum computers using Shor's algorithm can break computational asymmetry – the factor that makes ECC secure, turning 'unsolvable' problems into solvable ones in just a few minutes.


With a market cap of nearly $1.7 trillion, if Bitcoin's security layer is broken, the consequences would be catastrophic for the entire crypto ecosystem.



Project 11 and the 1 BTC reward: A bait to assess the level of threat


QDay Prize, a research group founded in 2024 by Alex Pruden and Conor Deegan, is testing the urgency of the quantum threat with a competition running until April 5, 2026.


Participants will attempt to break ECC keys from 1 to 25 bits – a number much smaller than the current 256-bit key of Bitcoin. However, if current quantum computers break just one 5-bit key, it would mark a significant breakthrough, paving the way for the possibility of breaking longer keys in the future.



"This is not a challenge to ‘destroy’ Bitcoin. If someone has a powerful enough quantum computer, they could have earned millions of USD by forging digital signatures and stealing money from exposed public key addresses." – Alex Pruden shared.




Not just Bitcoin, both Ethereum and Solana are also worried


In light of this threat, major blockchains are starting to prepare for a post-quantum future:



  • has introduced a 'quantum-resistant' solution called Winternitz Vault since January 2024. This mechanism uses hash-based signatures, creating a new key for each transaction – a safer approach against quantum threats.



  • Vitalik Buterin, co-founder of also proposed a hard fork in March 2024 to update the security algorithm to defend against quantum attacks.




These moves indicate that the entire Web3 world is entering a defensive stage, and regardless of being a symbol of stability, it is not out of danger.



Why is this an important signal for crypto users?


If a quantum computer breaks ECC, the entire public/private key system will collapse. An attacker could:



  • Forging digital signatures



  • Taking control of wallets



  • Moving assets without owner access




This means that any wallet that has ever publicly disclosed a public key (such as addresses that have ever sent/received BTC) could be vulnerable to attack.


For users storing assets on exchanges like Binance, this risk makes long-term storage in old cold wallets no longer absolutely safe in the quantum era.



Where are we on the quantum race?


Currently, there is no evidence that a quantum computer powerful enough to break Bitcoin's ECC exists. But as Project 11 warns:



"We don’t know how far we are. But to prepare, we need to have a plan. And to have a plan, we need experimentation and real data."



The QDay Prize competition is not just a game – it’s a way to determine the urgency of this threat. If a group can break a 5-bit ECC in a few months, it’s a wake-up call for the entire blockchain community.



Conclusion: Is the future of Bitcoin under threat?


Quantum computers are a double-edged sword: they can revolutionize science, medicine, technology… but they also have the power to break the security systems of digital assets.


The 1 BTC reward is just the tip of the iceberg – more importantly, there is a silent race between blockchain security technology and quantum advancements. Those who catch this trend early will have an advantage in investment and asset protection.


Crypto users – especially long-term Bitcoin holders – should start exploring post-quantum security solutions and closely monitor updates from networks like Ethereum, Solana, or organizations like Project 11.



Risk warning: The cryptocurrency market poses high risks and is highly volatile. All information in this article is for educational purposes only and should not be considered investment advice. Please consider carefully before making financial decisions.