Quantum Computing in Web3

Introduction to the Quantum Capabilities of the Internet 3.0

Giorgio Torre
/giorgiotorre1234/
Foreword

In the ever-evolving landscape of technology, few innovations have More specifically, this deck will provide a comprehensive overview of the
captured our collective imagination quite like quantum computing. Its key concepts, technologies, and challenges involved in quantum
immense processing power and ability to manipulate quantum states computing for Web3 enthusiasts, developers, and researchers alike. We
hold the promise of transforming entire industries, and Web3 is no will delve into quantum algorithms, quantum cryptography, and the
exception. integration of quantum technologies within blockchain systems.
Furthermore, we will discuss the potential impact of quantum
As we embark on this exciting journey into the realm of quantum computing on Web3 infrastructure, consensus mechanisms, and the
computing in the context of Web3, it is essential to understand the security of decentralized applications.
immense potential and implications that lie ahead. The fusion of
quantum computing with the decentralized and distributed nature of As always, I hope you will enjoy my work and please do not hesitate to
Web3 has the potential to revolutionize the way we interact with provide me with your precious feedback. It’s thanks to it that my decks
information, the security of our transactions, and the very fabric of our keep enhancing in terms of quality and simplicity of exposure.
digital existence.
I do this for free, so your feedback and your support is what fuels my
In this informative deck, I aim to demystify the complexities surrounding motivation in producing these decks. Follow me on LinkedIn for more
quantum computing and elucidate its significance within the Web3 insights.
landscape. I will explore the fundamental principles of quantum
mechanics, the power of quantum computation, and its practical
applications in the decentralized world of Web3.
Introduction to Web3 Pages 01-10
Components and Capabilities of the Internet 3.0

Quantum Computing Pages 12-17

Introduction to the Quantum Technology and its Physics

Quantum Computing and AI Pages 19-22

Quantum Computing and Artificial Intelligence convergence

Quantum Computing and Blockhain Pages 24-33

Quantum Computing and Blockchain convergence
1. Introduction

01 A new digital economy

02 Components of Web3

03 The Web3 Equation

04 Breakdown of the Web3 Equation

05 Why Web3 Matters

06 Web3 Tech Stack Layers

07 Web3: What is it about?

08 Web3 – What changes

09 Weren’t these features already in Web2?

10 Centralized vs Decentralized

Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

A new digital economy

The world is clearly changing and it’s happening now, in front of Web2 economy Web3 economy Web2.5 economy
us. While writing this report, I feel that the information I am at
disposal to produce a high-quality deck is already outdates. This
is because of the technological and innovation curve is
exponential, which means that the more we advance the faster
we progress. It’s nice to know that this behavior is happening
after the 1st Industrial Revolution in Europe, before was pretty
much “linear” (given the Middle-Age cultural fall). As for each
innovation stage, we are now experiencing a real change of
paradigm, where the technology determines the rise of human
Investments are based Investing innovation is based Industry legacy transitions
and philosophical questions and debates. What today is
start happening also though
changing is an immersive and fluid interaction with the machine Business on a “benchmark” on new economics
alternative governance
economics. (tokenomics).
(hardware) and its content (software). Users will in the future (DAOs) and tokenomics.
“approach” to the machine, rather than “use”. In the current
plethora of trends, polluted by the market hype (useful for old Data is acquired and Data is: digitally native (on- Integration to the web2 data,
stored, the obsolete is chain), individually- new digitally native data (on-
brand that leverage it for marketing purposes), we need today Data community governed and
kept (complying with chain).
more than ever solid and smart regulations, which can indicate GDPR) tradable.
to regulators and policy makers opportunities and constraints.
But before that, regulators and policy-makers need first to have Contribution-based
some basic knowledge about the matter. The purpose of this Achieving the max Process built around users’
Process degree of automation.
interaction and rewarding
control of their own data.
document is exactly to provide this basic understanding, before for creators.
pointing out to strategic objectives and potential roadmaps.

We are here

01
 Introduction Quantum Computing QC and AI QC and Blockchain

Components of the Web3

The Internet 3.0 has effect on several areas of innovation

Website
and multiple capabilities. More specifically, Web3 can be
schematized as the aggregation of pre-existing entities and
technologies that are combined as follows:

• Blockchain: decentralized, trustless and p2p network

that stores all the information of the chain, consisting
in transactions between users on the ledger.

• UI/UX 3.0: it represents the new way of engaging

Web3
users and to enhance remote collaboration, in other
words can be called Metaverse.

• AI & Big Data: Semantic web and NLP will heavily Blockchain AI & Big
contribute to make the interaction between user and Data
machine more “human”.

UI/UX
3.0

02
Source: “The Economy of Tokens” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

The Web3 Equation

Web3 as sum of the following components

+ + +
Website DLT UI/UX AI and Big Data
World Wide Web
3.0
Unique User
Interconnection,
Decentralization Personalization,
Application Experience
Semantics

Blockchain Metaverse Semantic Web

03
Source: “The Economy of Tokens” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Web3 Equation Breakdown

Blockchain should be imagined as both a governance technology and a financial technology

The Web 3.0 equation

Web3 components DLT (Blockchain) + AI/Semantic Web + Metaverse

Areas of Innovation Identity Ownership Governance Value Customer Experience Collaboration

Users can directly

Capabilities Privacy Decentralization Liquidity Democracy (*) Create data Build Write data
Fully sensorial interaction
stores vocabularies rules

XR

Means Cryptography DAOs • Assets tokenization, DeFi

• NFTs
fractionalization,
• Other secondary
markets
RDF, SPARQL, OWL, SKOS AR VR

Governance token • ERC-20

Tools (SHA256, ZKP, (security token –
ERC20 in Ethereum)
• ERC-21
etc.)

Smart Contracts

04
(*) Quick payments, Inclusive finance (i.e. loans) and Low transaction fees Source: “Web3 Economy” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Why Web3 Matters

People will have more control over their Web3 empowers user with ownership. It’s
data and they can monetize them by about the direct connection between creators
Text
selling directly to the end-consumers. — Text
and consumers, obfuscating the gatekeepers.
Web3 Social Media could allow users to
Data Text Creators Text
— Text
monetize their own data, or even earn Ownership Economy— Text
crypto “tips” from other users for posting Text
interesting content. — Text

As Web3 runs on blockchain, user Web3 will use artificial intelligence (AI),
information remains more safe and secure AI-tailored machine learning(ML), and the semantic
Security
than it would be in the centralized web. Web3 paves the way for a future in
architecture Content which different people and machines can
interact with data, value, and other
counterparties without the involvement of
third parties

05
Source: “The Economy of Tokens” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Web3 Tech Stack Layers

The Internet 3.0 capabilities have, among other things, empowered users and content creators. This has been possible thanks to the way the web3 architecture (tech stack) is
designed.

Wallets Custody
Wallets and Custody (Layer 4)

Read only Read-Write Read-Write-Own Mechanisms for protecting digital

assets’ keys and related data

Applications (Layer 3)

Solutions built on top of DLTs that

cater to specific needs

Eth. Roll-ups State channels Sidechains Oracles Bridges

Enablers (Layer 2)

Solutions that improve protocol

extensibility and scalability

Protocols (Layer 1)

Underlying blockchains and other

DLTs that process transactions and
Web1 Web2 Web3 store value

06
Source: “The Economy of Tokens” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

What Web3 is all about

Public Key

Among other things, the Internet 3.0 will shape 4 main areas of
“innovation”: Private Key

Cryptography
• Identity: where the users is in controls of his own data and
can decide whether to keep them secret or to monetize
them. In the web3, each users connects his own
decentralized wallet to the browser, where identity and Identity Wallet
crypto assets are stored. A public key identities a unique
address (utilized for the transactions or change of Security Token
ownerships), while a private key represents the secret code
to authorize transactions. Made easy, the public key is like
the IBAN and the private key is the CVV.
Tokenomics Liquidity
• Value: Tokenomics and tokenization of illiquid assets will What Value
generate a value that will first be purely digital and, after a Web3 is Voting Token

Smart Contracts
wider adoption, will become part of the real world asset
intrinsic value.
all about
DAO
• Governance: Though the Decentralized Autonomous
Organization model, web3 enterprises’ governance will be Governance
dictated by voting sessions, whose participants have voting
rights proportional to their entry capital. ERC-721 (Ethereum)

• Ownership: Being complementary to the identity,

ownership will be granted by specific non fungible tokens Non-fungible tokens
(NFTs), allowing to map each (on-chain represented or
native) digital assets to a specific owner, except for the
fractionalization case. Ownership
07
Source: “Web3 Economy” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Web3 – What changes

Web2 Web3
Some of the drivers fueling the shift from Web2
to Web3 are: Data Central control of the provider User controls and owns its data

Digital liquidity – Enormous amount of Platform posture Closed Mainly open source
transactions (real time processed), based on
value (or fractions of it) that is recognized by Identity Identity gets controlled (not-deeply) Identity verification from the ledger
the entire community.
Incentive model Winners earns all Cooperation and royalties-based model
Change of the governance model – absence of
a central body (i.e. Big Tech like Google or Liquidity Subordinated to operational time Real time available and fruibile
Microsoft) and users’ empowerment though
Monetization Platforms and content-creators (i.e. YT) Data owners, creators, platforms
incentive models where the benefits are fairly
shared across the owners of the data and the
content-creators. In particular Smart contracts Owns
and tokens distribute power amongst token Community da ta
(network) is Generates
holders. Service User data i ndependent
king
va l ue
This produces a bi-univocal model, based not

Web3
Web2
on a client-server logic, but rather on a
collaborative governance, where the users are
in control of how their own data is used and
everyone “wins” in proportions to its own
rights. Today you are just a subscriber to a Val ue of the servi ce/product
Val ue of the servi ce/product depends on how bi g
website, possibly a consumer. In the Internet depends exclusi vel y on the
provi der ca pabilities i s the network.
3.0, you are an owner of a part of it.

08
Source: “Web3 Economy” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Web2 to Web3

Weren’t these features already in Web2?

Web3 is not a sudden disruption, but rather a long and Web3 Web3 Web3
ongoing process that will completely revolutionize the
way we use and approach to Internet. More
specifically, Web3 is a process made of progressive
integration of disruptive technologies, all combined to
provide users with the highest personalized and
enjoyable experience. In other words, Web3 is the
destination, not the path.
Web2 Web2 Web2

Web2 with Blockchain Web2 with AI Web2 with Metaverse

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Source: “The Economy of Tokens” – Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Centralized vs Decentralized

Centralized Decentralized
Web 2.0 refers to websites and applications that utilize
user-generated content for end users. Web 2.0 is used
in many websites today, chiefly focusing on user
interactivity and collaboration. Web 2.0 also focused
on providing more universal network connectivity and
communication channels. The difference between Web
2.0 and 3.0 is that Web 3.0 is more focused on the use
of technologies like machine learning and AI to provide
relevant content for each user instead of just the INTERNET
content other end users have provided. Web 2.0
essentially allows users to contribute and sometimes
collaborate on site content, while Web 3.0 will most
likely turn these jobs over to the semantic web and AI
technologies.

10
Source: “The Economy of Tokens” – Giorgio Torre
2. Quantum Computing

12 Quantum Physics - Basics

13 Quantum Computing

14 Quantum Algorithms

15 Potential Applications

16 Quantum Cryptography

17 Traditional vs Quantum Computing

Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Quantum Physics - Basics

Quantum physics describes the behavior of matter and energy at the smallest scales, challenging classical notions of reality.

Key Elements of Quantum Physics

Light Duality Superposition Quantum Entanglement

|ψ 〉= α|φ 〉+ β|ξ〉 √ P− |ψ 〉 = |−z〉 |+z〉

Wave Particle

Particles such as electrons and photons exhibit both wave Quantum systems can exist in multiple states Entangled particles remain connected, and their states become
and particle properties, suggesting that matter and energy simultaneously, known as superposition. These states correlated. Measuring one particle instantly determines the
can behave as both waves and particles. only collapse into a definite state when measured. state of the other, regardless of the distance between them.

Postulates of Quantum Mechanics

State postulate Measurement postulate Uncertainty Principle
𝒉
|ψ|2
The s ta te of a quantum s ys tem is The a ct of measuring a quantum s ys tem causes the wa ve It’s i mpossible to simul taneousl y know the
Ψ(r,t) des cribed by a wa ve function, whi ch
contains all the information about the
function to collapse to a speci fi c sta te. The outcome of
the measurement is probabilisti c, with probabilities
Δx·Δp ≥
4π
precise val ues of position and momentum.
There is an inherent uncertainty in these
s ys tem's possible s tates. gi ven by the squared magnitude of the wave function. mea surements

The evolution of a quantum system is governed by a mathematical operator called the Hamiltonian, which determines how the system′s wave function changes over time. 12
 Introduction Quantum Computing QC and AI QC and Blockchain

Quantum Computing

Below are the fundamentals of quantum computing and its main mathematical features

Q 1
0

Qubit Superposition Quantum Gates Quantum Circuit

The fundamental unit of information in Qubits can exist in a superposition of Operations performed on qubits to
A sequence of quantum gates applied
quantum computing, analogous to a states, allowing for the simultaneous manipulate their state, including Pauli-
to qubits to perform a desired
classical bit but with additional representation of multiple classical X, Pauli-Y, Pauli-Z, Hadamard, and
computation.
quantum properties. states. CNOT gates.

Postulates of Quantum Computing

1.Superposition postulate: A qubit can be in a superposition of |0⟩ and |1⟩ states,

represented as α|0⟩ + β|1⟩, where α and β are complex probability amplitudes.

Quantum Measurement Quantum Entanglement 2.Quantum gates postulate: Quantum gates are reversible and unitary transformations
that operate on qubits, manipulating their state.
The process of obtaining classical The phenomenon where qubits become 3.Measurement postulate: Measuring a qubit collapses its superposition to a classical
information from a quantum system, correlated and exhibit non-local state (|0⟩ or |1⟩) with probabilities determined by the squared magnitudes of the
with measurement outcomes correlations, enabling powerful probability amplitudes.
probabilistically determined. computational effects.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Quantum Algorithms

In quantum computing, a quantum algorithm is an algorithm which runs on a realistic model of quantum computation, the most commonly used model being the quantum
circuit model of computation.

Quantum Fourier Transform (QFT):

1 A quantum algorithm that efficiently performs the Fourier

transform on quantum states, essential for many quantum
algorithms.

Grover’s Algorithm

2 A quantum search algorithm that can find a specific item in an

unsorted database with a quadratic speedup compared to
classical algorithms.

Shor’s Algorithm

3 n! A quantum algorithm that efficiently factors large integers,

posing a significant threat to classical cryptography.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Potential Applications

Below are some of the most relevant applications of quantum computing

A Quantum Simulation Modeling and understanding complex quantum systems that are difficult to simulate classically.

Solving optimization problems more efficiently, such as the traveling salesman problem or portfolio optimization. Examples are Bounded-error Quantum
B Optimization
Polynomial-time and Quantum oracle (hypothetical black box that provides access to the solution of a specific computational problem).

C Cryptography Developing quantum-resistant cryptographic algorithms and protocol

Material Science and

D Chemistry Studying molecular structures and properties for drug discovery or materials design

Quantum cryptography Quantum computers can Quantum machine Quantum algorithms can Quantum computing can
offers the possibility of efficiently solve learning algorithms can efficiently provide complex optimize complex supply
developing secure optimization challenges potentially process and and more accurate chains, reducing costs, and
communication protocols. encountered in various analyze large datasets financial predictions and improving efficiency.
industries. more efficiently. risk management.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Quantum Cryptography

Quantum cryptography, also known as quantum key distribution (QKD), is a field of study that focuses on using principles of quantum mechanics to ensure secure communication
between two parties. Unlike classical cryptographic methods, which rely on computational assumptions, quantum cryptography leverages the fundamental properties of quantum
mechanics to provide security.

Quantum Key Distribution (QKD) Quantum Uncertainty Photon Encoding Quantum States and Measurements

The primary objective of quantum Quantum cryptography takes advantage of

QKD involves the transmission of quantum
cryptography is to establish a secure key the unc ertainty principle and the no-
QKD commonly uses the properties of states (e.g., polarized photons) from Alice
between two parties, often referred to as cloning theorem in quantum mechanics.
individual photons, the particles of light, to to Bob. Alice prepares the quantum states
Alice and Bob, through a process called These principles ensure that any attempt
encode information. The polarization or in specific ways, and Bob measures them
Quantum Key Distribution (QKD). QKD to intercept or measure the quantum
phase of photons can be manipulated to using suitable apparatus. By comparing
allows the two parties to generate a states being transmitted will disturb them,
represent 0s and 1s, forming the basis of their measurement results, Alice and Bob
shared secret key that is known only to thereby alerting the communicating
quantum information encoding. can deduce whether their communication
them and is secure against interception or parties to the presence of an
has been compromised.
eavesdropping. eavesdropper.

Key Verification Security against Eavesdropping Quantum Cryptographic Protocols Practical Considerations
The security of quantum cryptography
relies on the fundamental laws of physics.
After the transmission of quantum states, Implementing quantum cryptography
Any attempt to intercept the transmitted Several QKD protocols have been
Alice and Bob perform a process called requires precise control of quantum states,
quantum states will unavoidably introduce developed, such as BB84 (Bennett and
"key sifting" to discard any data affected low-noise detectors, and secure
errors or disturbances, which can be Brassard 1984) and E91 (Ekert 1991),
by noise or potential eavesdropping. They transmission channels. Current
detected by Alice and Bob during the key which provide different methods for
then exchange and compare a subset of implementations often involve specialized
verification process. This allows them to encoding and transmitting quantum
their key bits to verify its correctness and hardware, such as photon detectors and
detect the presence of an eavesdropper information to establish secure keys.
establish the level of security. quantum key distribution systems.
and discard compromised portions of the
key.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Traditional vs Quantum

Quantum computing and traditional computing (classical computing) differ in several fundamental ways. t's important to note that quantum computing is not intended to replace
classical computing entirely. Instead, it complements classical computing by offering unique computational capabilities for specific problem domains. Both classical and quantum
computing have their own strengths and limitations, and their convergence has the potential to unlock new possibilities in computing and problem-solving.

Traditional Computing Quantum Computing

Calculates with transistors, which can represent Calculates with qubits, which can represent 0 and 1
Computational Unit
binary values such as 0 or 1. at the same time.

Power increases in a 1:1 relationship with the Power increases exponentially in proportion to the
Computational Power
number of transistors. number of qubits.

Classical computer have low error rates and can Quantum computers have high error rates and need
Error rates
operate at room temp. to be kept ultracold.

Most everyday processing is best handled by Well suited for tasks like optimization problems,
Suited for
classical computers. data analysis and simulations.

17
3. QC and AI

19 What is an AI

20 ML and DL - Differences

21 Applications of AI

22 Potential Synergies between AI and Quantum Computing

Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

What is an AI

Artificial intelligence (AI) refers to the simulation of human intelligence by software-coded heuristics. Nowadays this code is prevalent in everything from cloud-based, enterprise
applications to consumer apps and even embedded firmware.

The ideal characteristic of artificial Types of AI

intelligence is its ability to rationalize Reactive AI Limited Memory Theory of mind Self-aware
and take actions that have the best
chance of achieving a specific goal. A • Good for simple • Can handle • Able to • Humans level of
subset of artificial intelligence classification complex understand intelligence that
and patterns classification human motives can bypass our
is machine learning (ML), which refers recognition tasks and reasoning. intelligence too.
tasks.
to the concept that computer programs Delivers
• Able to predict personal
can automatically learn from and adapt • Great for future behaviors experience.
scenarios where based on
to new data without being assisted by all parameters historical data • Able to learn
are known.
humans. Deep learning techniques • Performs
with fewer
examples.
enable this automatic learning through • Requires
historical
complex tasks
(SDVs) but
the absorption of huge amounts of understanding. vulnerable to
outliers.
unstructured data such as text, images,
or video.

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 Introduction Quantum Computing QC and AI QC and Blockchain

ML and DL - Differences

Since deep learning and machine learning tend to be used interchangeably, it’s worth noting the nuances between the two. As mentioned, both deep learning and machine
learning are sub-fields of artificial intelligence, and deep learning is actually a sub-field of machine learning.

Deep learning is actually comprised of neural networks. “Deep” in

deep learning refers to a neural network comprised of more than
three layers—which would be inclusive of the inputs and the output—
can be considered a deep learning algorithm. This is generally
represented using the diagram below.
The way in which deep learning and machine learning differ is in how
each algorithm learns. Deep learning automates much of the feature
extraction piece of the process, eliminating some of the manual
human intervention required and enabling the use of larger data sets.
You can think of deep learning as "scalable machine learning" as Lex
Fridman noted in same MIT lecture from above. Classical, or "non-
deep", machine learning is more dependent on human intervention to
learn. Human experts determine the hierarchy of features to
understand the differences between data inputs, usually requiring
more structured data to learn.
"Deep" machine learning can leverage labeled datasets, also known as
supervised learning, to inform its algorithm, but it doesn’t necessarily
require a labeled dataset. It can ingest unstructured data in its raw
form (e.g. text, images), and it can automatically determine the
hierarchy of features which distinguish different categories of data
from one another. Unlike machine learning, it doesn't require human
intervention to process data, allowing us to scale machine learning in
more interesting ways.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Applications of AI

There are numerous, real-world applications of AI systems today. Below are some of the most common use cases:

Speech Recognition Virtual Agents Computer Vision

$190.61b
Global market size
by 2025

37%
Suggestion Engines Auto Stock Trading Generative AI Adoption rate by companies
worldwide

85m
Shortage of skilled AI
professional by 2030
ChatGPT, Midjourney

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 Introduction Quantum Computing QC and AI QC and Blockchain

Potential Synergies

The following 8 points represent potential synergies between Quantum Computing and Artificial Intelligence

Quantum computing can significantly improve optimization algorithms used in AI, enabling faster and more efficient solutions to complex optimization
1 Enhanced Optimization
problems.

Quantum machine learning algorithms have the potential to enhance pattern recognition tasks, enabling AI systems to identify subtle patterns and
2 Pattern Recognition
correlations in data more effectively.

Quantum computing can facilitate more accurate simulations and modeling in AI, allowing for better predictions and analysis of complex systems, such as
3 Simulation and Modeling
weather patterns, financial markets, or chemical reactions.

Quantum computing has the potential to speed up the training and inference processes in machine learning models, reducing the time required to train AI
4 Speeding up Machine Learning
systems and improving their real-time decision-making capabilities.

Quantum algorithms can potentially handle and process large datasets more efficiently, enabling AI systems to work with massive amounts of data without
5 Handling Big Data
sacrificing performance.

Improved Natural Language Quantum algorithms could enhance natural language processing tasks, enabling AI systems to better understand and generate human language, leading to
6 Processing more advanced chatbots, translation services, and voice assistants.

Quantum computing can help develop more robust encryption algorithms and security protocols, ensuring the privacy and security of AI systems and their
7 Cybersecurity and Encryption
data.

Combining AI and quantum computing can lead to the development of novel quantum machine learning algorithms, enabling AI systems to harness the
8 Quantum Machine Learning
power of quantum information processing for improved performance and new capabilities.

22
4. QC and Blockchain

24 Property of the Distributed Ledger Technology (DLT) 32 Potential Synergies

25 DLT-based transaction 33 Risks and Challenges

26 Blockchain architectures

27 Blockchain architectures - Architectural differences

28 Blockchain architectures - Key features

29 Architectural Trade-offs

30 Blockchain Layers

31 The blockchain trilemma

Giorgio Torre
 Introduction Quantum Computing QC and AI QC and Blockchain

Property of a DLT

A distributed ledger is the consensus of replicated, shared, and synchronized digital data that is geographically spread across many sites, countries, or institutions.

Distributed
Al l network participants have a full copy of the ledger for
ful l transparency.

Programmable
Anonymous
A bl ockchain is programmable,
though the use of s mart contracts.
Company The i dentity of participants is either
ps eudonymous or anonymous.

Secure Time-stamped
Al l records are i ndivi dually encrypted. Tra nsaction
timestamp is recorded
i n a block.

Immutable Consensus-based
Any va l i dated records are i rreversible Network participants agree to the
a nd ca nnot be changed. va l i dity of the records.

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 Introduction Quantum Computing QC and AI QC and Blockchain

DLT-based transaction

A DLT-based transaction relies on 3 main components: peer nodes, miner nodes and the ledger itself

PEER NODE
• Verifies tnx
• Adds to mempool
Wallet • Broadcasts tnx
• Process is repeated for each node receiving the tnx

Private Key MINER NODE

• Receives tnx
• Validates tnx
• Attempts to add the block (by solving the
User signs Sends signed
cryptographic puzzle – mining)
tnx to nodes
tnx • Process is repeated by every miner node receiving
the tnxs from peer nodes
dApp

MINER NODE
- Selects tnxs with highest gas fees

Tnx confirmed Upon successful mining operation, the

transaction is added to the new block
to be broadcasted to all the network.

Block broadcasted
over entire network

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 Introduction Quantum Computing QC and AI QC and Blockchain

Blockchain architectures

Blockchain architecture is the design structure of a peer-to-peer (P2P) network of computers that serves as a backend for applications and systems.

• Public blockchains are public, and anyone can join them and
validate transactions.

• Private blockchains are restricted and usually limited to business

networks. A single entity, or consortium, controls membership.

• Permissionless blockchains have no restrictions on processors. Private

Controlled by one authority

• Consortium blockchains is a private blockchain with limited

access to a particular group, eliminating the risks that come with Hybrid
just one entity controlling the network on a private blockchain. Public
No central authority Control led by one
a uthority with s ome
• Hybrid blockchains being a combination of both public blockchain permi ssionless
and private blockchain, It lets organizations set up a private, processes
permission-based system alongside a public permissionless
Consortium
Controlled by a group
system, allowing them to control who can access specific data
stored in the blockchain, and what data will be opened up
publicly.
Permissionless Permissioned
• Permissioned blockchains are limited to a select set of users who
are granted identities using certificates.

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 Introduction Quantum Computing QC and AI QC and Blockchain

Architectural differences
Public blockchain Consortium blockchain
Everyone Multiple organizations
• Multiple organizations
• Anyone is allowed to join and
influence the blockchain
participate in the consensus
Open ledger network
(anyone can operate) Open/closed
• Fully decentralized, secured ledger • Decentralized, extremely fast
and immutable ledge system
and scalable
• Transactions are anonymous
Open network • Network regulations preserve
but visible to anyone
(anyone can join) security and privacy
Closed network

Private blockchain Hybrid blockchain

Single organization Multiple organizations and individuals
• Authoritative access, only
Private
certain elements are private
• A single organization will have Public module
authority over the network module
Closed ledger Closed • Flexible control over which
ledger data is kept public or private
• Faster output, power efficient,
and offers privacy
• Decentralized, regulated and
highly scalable system
• Simplified data handling
Closed network process but not open to Closed network
anyone

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 Introduction Quantum Computing QC and AI QC and Blockchain

Key features

Enterprises and banks use private, permissioned architecture to optimize network openness and scalability

PERMISSION
PERMISSIONLESS PERMISSIONED

• Anyone can join, read, write • Anyone can join and read
and commit. • Only authorized and known
PUBLIC

• Hosted on public servers participants can write and

• Anonymous, high resilient commit
• Low scalability • Medium scalability
OWNERSHIP

• Only authorized participants • Only authorized participants

PRIVATE

can join, read and write. can join and read

• Hosted on private servers • Only the network operator
• High scalability can write and commit
• Very high scalability

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 Introduction Quantum Computing QC and AI QC and Blockchain

Architectural Trade-offs

List of advantages, disadvantages and use cases for each blockchain architecture

PUBLIC PRIVATE HYBRID CONSORTIUM

ADVANTAGES

+ + Access + Access + Access

Independence control control control
+ Transparency + Performance + Performance + Scalability
+ Trust + Scalability + Security
DISADVANTAGES

- Performance - Trust - Transparency - Transparency

- Scalability - Auditability (*) - Upgrading
- Security

• Cryptocurre • Supply chain • Medical • Banking

USE CASES

ncy • Asset records • Research

• Document ownership • Real estate (DeSci)
Validation • Supply chain
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(*) the audit of any digital asset consists in verifying whether it exists, who owns it and what its value is.
 Introduction Quantum Computing QC and AI QC and Blockchain

Blockchain Layers
Main Consensus Mechanisms

Proof of Work (PoW): lets miners add a new block to the

Blockchain consists of 5 layers: hardware infrastructure layer, data layer, network layer, consensus network based on the computation performed to find the
layer, and application layer. correct block hash.

Proof of stake (PoS): uses a staking mechanism where

participants lock up some of their coins to get selected for
block addition.

APPLICATION Delegated Proof of Stake (DPoS): the block delegates’

selection is based on voting. It’s an additional layer to PoS.
Smart contracts, chaincode,
Dapps, UI Proof of Importance (PoI): it rewards users with importance
CONSENSUS score which eventually helps them to become block
PoW, PoS, DPoS, PoET, harvesters.
PBFT
NETWORK Proof of Capacity (PoC): it uses the storage capacity for
mining a block.
Peer-to-peer (p2p)
Proof of Elapsed Time (PoET): it uses a time-lottery based
DATA mechanism, distributing wait time to each participant node.
Proof of Activity (PoA): it combines the capabilities of the
Digital signatures, hash,
PoW and PoS.
Merkle tree, transactions
HW - INFRASTRUSTRURE
Proof of Authority (PoAu): it relies on the validator’s
Virtual machine, containers, reputation to make the blockchain work properly.
services, messaging
Proof of burn (PoB): it allows miners to add their block by
sending some of their coins to an unspendable account.

Byzantine Fault Tolerance (BFT): works on system to stay

intact even if one of the nodes fails with constant
communication among nodes.

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 Introduction Quantum Computing QC and AI QC and Blockchain

The blockchain trilemma

The Blockchain Trilemma refers to a widely held belief that decentralized networks can only provide two of three benefits at any given time with respect to decentralization,
security, and scalability. However, there are today ways to rationalize the issue on Layer 1 and Layer 2 blockchains.

Chain #1 (Service 1)

Real World (Services)

Security

.
OFF CHAIN ON CHAIN .
.
Integration
Interoperability
Chain #n (Service n)

Decentralization Scalability

On-chain off-chain Communication (Integration and Interoperability)

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 Introduction Quantum Computing QC and AI QC and Blockchain

Potential Synergies

Blockchain and quantum computing are two cutting-edge technologies that have the potential to revolutionize various industries. While they are distinct in nature, there are
several potential synergies between blockchain and quantum computing that could enhance the capabilities and security of both technologies. Here are a few examples:

Quantum computing has the potential to break the cryptographic algorithms that are commonly used in blockchain systems. Howev er, quantum-resistant
1 Enhanced Security cryptographic algorithms can be developed to withstand quantum attacks. By integrating these quantum-resistant algorithms into blockchain protocols, the security
of blockchain networks can be strengthened, ensuring the integrity and confidentiality of transactions even in the presence o f quantum computers.

Blockchain consensus mechanisms, such as proof-of-work (PoW) and proof-of-stake (PoS), are computationally intensive processes. Quantum computing could
Consensus
2 Mechanisms
potentially accelerate these processes, making them more efficient and environmentally friendly. Quantum computing can also enable the exploration of new
consensus mechanisms that are more secure, decentralized, and energy-efficient.

Blockchain networks often face scalability challenges due to the limitations of traditional computing systems. Quantum computing has the potential to solve complex
3 Improved Scalability mathematical problems more efficiently, which could lead to improved scalability for blockchain networks. Quantum computing algorithms can be developed to
optimize resource allocation, transaction validation, and network management in blockchain systems, thereby increasing their scalability.

Quantum computing can facilitate secure key exchange between participants in a blockchain network through QKD. QKD uses the principles of quantum mechanics
Quantum Key
4 Distribution (QKD)
to establish cryptographic keys that are resistant to eavesdropping. By leveraging QKD, blockchain networks can enhance the security of transactions and
communications, preventing unauthorized access or tampering of data.

Quantum computing can potentially enhance the ex ecution of smart contracts on blockchain platforms. Smart contracts are self-executing contracts with predefined
Smart Contract
5 Execution
rules and conditions. Quantum computing can enable faster execution of complex computations required by smart contracts, leading to more efficient and
sophisticated decentralized applications (DApps) and automated processes on the blockchain.

It's worth noting that quantum computing is still in its early stages of development, and many of its practical applications are yet to be fully realized. However, as quantum computing advances, the potential
synergies with blockchain are likely to become more prominent, enabling the creation of more secure, scalable, and efficient decentralized systems.

32
 Introduction Quantum Computing QC and AI QC and Blockchain

Risks and Challenges

Quantum Security Threats: Quantum computing's immense processing power can potentially break many
of the cryptographic algorithms used to secure sensitive data. This poses a significant risk to traditional
encryption methods, including those used in banking, government systems, and online communication. As
quantum computers advance, there is a pressing need to develop quantum-resistant cryptographic
algorithms to ensure data security in the post-quantum era.
While quantum computing holds immense
promise, it is important to acknowledge the Scalability and Error Correction: Building large-scale, error-free quantum computers is a formidable
challenge. Quantum systems are highly sensitive to environmental disturbances and noise, leading to
hurdles that lie in our path. Quantum errors in calculations. Scaling up the number of qubits (quantum bits) while maintaining their coherence
technologies are still in their early stages, and and minimizing errors is a significant technological hurdle that needs to be overcome for quantum
computing to be practical for complex computational tasks.
many obstacles need to be overcome before we
can fully harness their power. From the High Hardware Requirements: Quantum computers require extr emely low temperatures and highly
controlled environments to maintain the delicate quantum states of qubits. The infrastructure required to
development of robust quantum hardware to the support quantum computing is complex, expensive, and currently accessible only to a limited number of
creation of quantum-resistant cryptographic well-equipped research institutions and companies. Developing more accessible and commercially viable
quantum computing hardware is crucial for widespread adoption.
standards, we must confront these challenges
head-on to ensure the stability and security of Limited qubit lifespan: Quantum coherence, the property of qubits to perform quantum computations, is
fragile and easily disrupted by ex ternal factors such as noise and interaction with the environment. This
Web3 ecosystems in the quantum era. Q limits the time during which qubits can maintain their quantum states, known as the qubit lifespan.
The fusion of quantum computing and Web3 has Prolonging qubit lifespan and improving qubit stability are active areas of research to make quantum
computers more practical.
the potential to reshape our digital reality, and we
Algorithm Development and Software: Traditional software development practices and algorithms are
must be prepared to navigate this uncharted not directly applicable to quantum computing. Designing efficient quantum algorithms and programming
territory with both curiosity and caution. languages to leverage the unique capabilities of quantum computers is a complex task. The quantum
software stack, including compilers, simulators, and optimization tools, is still in its nascent stages and
requires further development to make quantum computing accessible to a wider range of users

Ethical and Security Concerns: Quantum computing's unparalleled processing power raises ethical and
security concerns. It has the potential to break encryption protocols used for secure communications,
compromising sensitive information. Additionally, quantum computers could be used maliciously for
hacking, data theft, or code-breaking activities. Ensuring the responsible and ethical development,
deployment, and use of quantum computing technology is essential to mitigate these risks.

Addressing these risks and challenges requires collaborative efforts from researchers, governments, and industry stakeholders. Ongoing research and development are crucial to overcome technical barriers, establish robust security 33
measures, and harness the full potential of quantum computing while safeguarding against its potential negative implications.
 Giorgio Torre

All rights are reserved. Every content part of this document, whether partial or total, aims to educate and does not replace an appropriate deep research. No profit has been generated out of it.
About the Author

Giorgio Torre has 10+ years of successful hands-on international experience in

Project Management, Business Making and Consulting. During his activity he has
been mentoring GCC and European Governments on their national startup
ecosystem development across several industries, while helping the business
environment to be fueled by the introduction and promotion of emerging
technologies such as Artificial Intelligence, Blockchain, Metaverse, VR/AR and
IoT.

Giorgio is an internationally recognized and awarded public speaker and author

of 50+ International publications on AI, Blockchain, Metaverse and Web3.

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