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qBitTensor Labs Live — July 23, 2026

July 23, 20261:13:53

BlueQubit CTO Hayk joins the show as Enigma's prize pools climb to $15,000 with milestone four unsolved on Breaking RSA and difficulty three on Hardening Quantum Proof. New rules require every submission to be open source, a mainnet gas bug briefly freezes the treasury wallets, Open Quantum Edge moves into the data center at the metal, a qBraid partnership puts Open Quantum in front of 30,000 users, two Bittensor subnets fall to the Sapphire Sleet hackers, Breaking RSA heads to DEF CON's Quantum Village, and a Chinese preprint cuts the logical qubits needed to break ECC to 835.

The July 23rd broadcast handed the spotlight to a guest: Hayk, CTO of BlueQubit -- the team that generates every peaked circuit behind Enigma's Hardening Quantum Proof challenge. Around that conversation: prize pools climbing to $15,000 as Breaking RSA milestone four and Hardening Quantum Proof difficulty three hold out, new open-source rules for submissions, a mainnet bug that briefly froze the treasury wallets, Open Quantum Edge hardware racked in a QPU data center, a qBraid partnership putting Open Quantum in front of 30,000 users, two subnet hacks that rattled the ecosystem, DEF CON on the horizon, and a Chinese preprint that cuts the qubit count needed to break ECC nearly in half.

Enigma: Prize Pools Climb to $15,000

  • The early milestones on both challenges fell in roughly a week, each paying out a $10,000 prize pool to the winner.
  • Breaking RSA milestone four (a 500-bit key) and Hardening Quantum Proof difficulty three have now gone a couple of weeks unsolved. Prizes were bumped to $12,500 last week and $15,000 this week, with more upward pressure to come if they keep holding.
  • As ShorShot framed it: the era where you could "drive an AI for a few hours and kinda get what you need" is over. These are real challenges now, and the prizes will reflect that.

New Rule: Open Source or It Doesn't Count

Recent RSA winners had been hiding their innovations inside binaries. The rules have been updated: real, publicly available binaries (factorization libraries, quantum simulators -- anything you can pip install or license) may be included, but anything you changed or invented must ship as open source. The whole point of Enigma is letting the next miner stand on the shoulders of giants. The challenge itself stays decentralized, but enforcement doesn't rely on the validators alone: if a validator passes a submission that broke the rules, the treasury wallets give the team the opportunity to stop the payment.

Hayk of BlueQubit -- Peaked Circuits from the Source

  • Hayk's path: competitive programmer, computer scientist, then over the "steep barrier to entry" into quantum with the help of a friend doing a PhD in quantum physics -- the same friend he co-founded BlueQubit with around four years ago, betting on software and algorithms while everyone else built hardware.
  • Peaked circuits started with Scott Aaronson's Q2B keynote in December 2024 -- the same conference where Bob and Hayk first met. "This should be pretty easy to build" turned out to be wrong, and BlueQubit iterated all the way to circuits nobody knows how to solve classically.
  • BlueQubit generates and calibrates all of Enigma's peaked circuits through an enterprise API stack, and runs Peaked Portal, a public leaderboard playground where anyone can test themselves against some of the best in the world.
  • Difficulty three: no existing public tool can solve it, and BlueQubit itself has no general solution. Smart people Hayk personally pointed at the challenge spent whole weekends on it and texted him complaints. Difficulty four is already in development -- "at least as hard, but realistically more hard."
  • The endgame borrows from the OG RSA challenge of the 2000s: the world built its conviction that RSA is hard not through mathematical proof but by leaving prize money unclaimed for years. A peaked-circuit milestone with a million dollars on it that nobody can crack would be, in Hayk's words, "actual quantum supremacy that you can't dispute."

Treasury Wallet Glitch -- Found, Patched, Confirmed

A recent mainnet release broke gas estimation on a UID lookup call exposed to contracts -- creating a payout proposal suddenly cost half a TAO in gas, freezing treasury operations. ShorShot steered the Church of Rao developers toward the offending commit, the patch is confirmed live on mainnet, and the next rewards should flow through the treasury wallets without a hitch. In the meantime the owner-funded prize wallet -- deliberately kept outside the treasury system -- meant the latest challenge winner still got paid on time.

The Eye of Sauron

Const posted about Enigma at 3:40 AM team time -- ambiguous enough to read as "this is interesting" or "this smells off." The community jumped to the subnet's defense while the team slept, and the exchange got picked up and publicized to a broader audience. Takeaways: any attention is good attention, it put the subnet on the radar of bigger players who now know it's legitimate, and it exposed a gap -- the team needs to advocate beyond its immediate community.

SN48: Open Quantum Edge

The team is moving from consuming QPUs solely through vendors' proprietary clouds to also being the layer between the quantum computer and the cloud -- working with everyone from the dilution refrigerator companies to the control systems firing pulses into the qubits to the third parties calibrating them. An Open Quantum box is already racked in the first client's facility, running the software control that puts the machine on the cloud. As ShorShot put it, nothing in the industry glues these systems together today -- that's the gap Open Quantum Edge fills.

qBraid Partnership -- 30,000 Users

qBraid -- a well-known platform in the quantum hackathon scene -- has added native Open Quantum support: an OAuth handshake links your accounts, and qBraid users execute jobs into Open Quantum through Subnet 48 without leaving the qBraid interface. qBraid just announced passing 30,000 users, and the news drew coverage from both The Quantum Insider and the Quantum Computing Report. Alongside the launch, the Open Quantum site got upgrades: new registrations now get $50 in free quantum compute by default, and a getting-started workflow walks every new user through executing their first circuit, with in-browser notebooks so nothing needs to be installed locally. Weekly active users and job executions: both up and to the right.

Two Subnets Hacked

SN15 (Oro) and SN102 (ConnitoAI) were hacked within 24 hours of each other, with a visible dump in the charts. Oro's postmortem points to Sapphire Sleet, the Korean hacking group identified in a Microsoft report: a trusted friend's Telegram account was hijacked, a fake meeting invite installed malware, a keylogger sat on an employee's computer for months, and the owner keys walked out the door. The team's own posture: treasury wallets require multi-step proposals that validators can cancel at any time (with signals on every state change), and owner keys stay on air-gapped systems. ShorShot's summary -- "don't keep keys on the internet" -- and the real enemy is complacency.

DEF CON and WISER

Terra Quantum's Taylor Hartley will mention the Breaking RSA challenge in her quantum workshop at DEF CON's Quantum Village, and talks are underway with the organizers to get the Enigma challenges sponsored as part of the big hackathon, with Open Quantum offered as a resource for the hackers. DEF CON gathers tens of thousands of leading hackers and cybersecurity experts -- exactly the outside talent Enigma wants in Bittensor. Separately, Bob spoke at WISER's three-week quantum-and-AI summer camp, putting Open Quantum in front of a hundred-plus students and industry professionals -- presenting right after Tom Finke, the man the internet once decided was secretly running qBitTensor Labs.

ECC: 835 Logical Qubits

A Chinese preprint improves on Shor's algorithm for breaking ECC, cutting Google's headline-grabbing estimate of 1,400 logical qubits down to 835 -- in a matter of months. The catch: the savings are paid for in circuit depth, with heavy use of expensive Toffoli gates (though experts noted fewer Toffolis than expected). Bob's take: exciting, but the jury's still out -- if the ideas in the paper work, why hasn't anyone used them to take the top spot in the public ecdsa.fail challenge? It's also a reminder that the DARPA chart should show what quantum computers can do as boxes, not vertical lines, because error rates dictate how many gate operations you actually get.

Community & Q&A

  • Web submissions without crypto: the path is set. Stripe's terms prohibit entry fees for cash-prize contests, so the fee gets reframed as what it actually is -- compute. You'll link your Open Quantum account and spend compute credits to cover the cost of validating your solution. ShorShot's estimate: the next few weeks.
  • Quantum computers mining SN63 by end of year? Maybe. The published record for factoring on a physical quantum computer is not a 21-bit number -- it's the number 21. The hard part is proving, in a fully decentralized way with no human reviewer, that a QPU genuinely ran Shor's. A deeper-dive session on the roadmap is coming.
  • Will submission data feed products? Already happening in spirit: BlueQubit uses each broken circuit (and the approach that broke it) to calibrate the next generation, and Quantum Rings watches submissions for novel simulation techniques -- a licensing conversation could come around peaked circuit levels three and four.
  • Sentiment ran hot: a fan-made GIF of Bob dancing with a quantum computer (team favorite), Quantum Tangerine declaring quantum "might have the strongest cult in the entire ecosystem," and Bob's closing thought that TAO has shown incredible strength holding the 200 line. Change is fast and a little disorganized -- but comfort isn't the objective, innovation is.