Google revealed quantum computing chip: what that means for crypto?

Google introduced a computing chip that takes minutes to complete tasks that would take quadrillion years normally

Google revealed a 'mindboggling' innovation. This chip is just 4 centimeters square and possesses an inconceivable speed. Google built a computing chip that takes around five minutes to complete tasks that could take up to 10,000,000,000,000,000,000,000,000 years otherwise if the world's fastest computer would be used.

That is ten septilions or ten quadrillion years. This chip is the latest development in quantum computing, which attempts to use the principles of particle physics to create a new type of powerful computer^[1].

The Willow chip, Google's newest creation, incorporates key breakthrough functions and 'paves the way to a useful, large-scale quantum computer.' However, Willow is now largely an experimental device, and even though these quantum computers are powerful enough to solve many problems, the innovation is still years and billions of dollars away.

The new chip, made in the California beach town of Santa Barbara, could supercharge the creation of new drugs by greatly speeding up the experimental phase of development. According to an independent UK expert, several reports since 2021 suggest that quantum computing might be just five years away from becoming powerful enough to revolutionize how we develop new materials, from medicines to batteries^[2].

Quantum computers work in a completely different way than your common computer

Governments worldwide are investing tens of billions of dollars into this research. Willow is a breakthrough, a new system that's said to be much less error-prone than earlier versions. This improvement could significantly boost the already rapidly growing field of artificial intelligence.

Quantum computing, which uses matter's unique behavior to exist in multiple states at once, is expected to perform much larger calculations than traditional computers. This could speed up the development of technologies like nuclear fusion reactors and greatly boost artificial intelligence, especially in medical research.

Unlike regular computers, quantum computers use quantum mechanics — the strange way ultra-small particles behave — to solve problems much faster than current technology allows. This could lead to significant advancements, such as rapidly developing new medicines. For instance, Google says quantum computing could make it possible to read MRI scans at the atomic level, revealing new insights about the human body and diseases that AI could then analyze.

However, the same power that could drive medical breakthroughs also raises concerns. Quantum computers could potentially break encryption methods that currently protect sensitive information. In response, companies like Apple are already working to secure their systems. In February, Apple announced that iMessage encryption was being made "quantum-proof" to stay ahead of future threats posed by quantum computing^[3].

Google’s Quantum AI lab, led by Hartmut Neven—the project's "chief optimist," is behind developing a new Willow system. Neven said Willow will be used for practical applications, but he hasn’t shared specific details. He noted that commercial quantum chips likely wouldn’t be ready until the end of the decade.

Initially, these quantum chips will be used to simulate systems where quantum effects play a key role. This includes critical areas like nuclear fusion reactor design, drug development, and the creation of better car batteries. According to Neven, the list of potential applications is long.

But while the potential is exciting, experts also warn about the risks. Without proper safeguards, quantum computing could break even the most advanced encryption, risking global cybersecurity.

Quantum computing poses significant threats to current security systems

Google's quantum computing chip can finish the most difficult tasks in 5 minutes, which could mean that cryptocurrency is finished. The most powerful cryptocurrency, Bitcoin, now uses encryption algorithms like SHA-256 for mining and ECDSA for signatures. These can be vulnerable to this new quantum technology.

When Google revealed Willow, many started to panic and discuss the issue with cryptocurrency. This technology means that passwords are not safe, encrypted messages can be intercepted, and nuclear weapons codes are available. A powerful computer can unlock almost anything by brute-forcing combinations of numbers and letters.

But this is not that scary. Yet. This technology indeed poses significant threats to various security systems available right now, but it is not going to unlock the master key of the universe—not for a while. Bitcoin is also not in danger.

Quantum computing relies on principles of quantum mechanics and uses quantum bits or qubits instead of traditional bits. Bits are presented in 0 or 1, while qubits represent both 0 and 1 simultaneously due to phenomena like superposition and entanglement. This is why quantum computers can perform multiple calculations at once and solve problems intractable for conventional computers.

Cryptocurrency sector still has time to develop quantum-resistant algorithms

Willow's innovation is a critical step towards building a practical, large-scale quantum computer. It uses 105 qubits and demonstrates an exponential error reduction as qubits increase. Bitcoin relies on algorithms like SHA-256 for mining and ECDSA for digital signatures. While these are secure today, they could be vulnerable to quantum computers in the future.

However, even advanced quantum systems like Google’s Willow aren’t yet powerful enough to break widely used encryption methods like RSA, ECC (used in Bitcoin), or AES (used to secure data). A quantum computer would need to factor large numbers at high speed, which requires far more computational power than what’s currently possible^[4].

Achieving this would require millions or even billions of "qubits" — the building blocks of quantum computers — with extremely low error rates. Today’s quantum computers, including Google's Willow, are nowhere near that level.

Google recently claimed it had made progress in error correction with its latest quantum chip. Chris Osborn, founder of the Solana ecosystem project Dialect, explained it this way: "Below threshold" error correction is a step toward turning "noisy, unreliable qubits" into "logical qubits" that are much more stable and capable of real computation.

Breaking encryption like RSA or ECC using Shor's algorithm would require around 5,000 logical qubits. But to achieve that, you’d need millions of physical qubits. Google's latest chip only has 105 physical qubits — still far from what's needed to crack encryption. This gives industries like cryptocurrency some breathing room and time to catch up. Developers are already working on "quantum-resistant" encryption to stay ahead of future risks.