Quantum Blockchain Technologies Plc – Update on Bitcoin R&D

November 15, 2022

Quantum Blockchain Technologies Plc
(“QBT” or “the Company”)

Research and development update

The board of Quantum Blockchain Technologies (AIM: QBT) is delighted to update the market with the latest advances from its research and development (“R&D”) team, which is working on developing proprietary methods to create cheaper, faster Bitcoin. and more energy efficient miners (“BTC”).


  • Preliminary results of machine learning method “B” indicating a 30% improvement over commercially available ASIC chip-based miners,

  • The regularities identified within the SHA-256 algorithm mark progress towards a potential patent filing

  • Investigate the potential of the third-party licensing strategy to leverage early revenues

  • Appointment of Dr. Rita Pizzi as head of research

Machine learning and artificial intelligence

The first results obtained by two of the Company’s three Machine Learning (ML) groups with respect to the development of the first two algorithms based on the Company’s knowledge (described in the Company’s RNS dated May 23, 2022 as Method “A” and Method “B”), refer to a prototype of a proprietary software accelerator for mining BTC, which is now capable of undergoing intensive testing.

The computational requirements to validate both Method A and Method B by testing at the current difficulty level of BTC mining are very challenging. The Company has not ruled out the use of a supercomputer for such tests, but a more pragmatic approach in the short term is based on the use of existing ASIC miners on the market. The Company has already acquired a number of ASIC miners with the intention that the ASIC miner control software will be replaced by QBT’s proprietary software, based on Method B.

Additional miners will be acquired to test the performance of both Method A and Method B at the current mining difficulty.

Interesting preliminary laboratory results have been achieved to date with Method B, which is based on two different ML methods combined, indicating a statistical improvement of up to 30% over existing ASIC-based BTC miners on the market. That is, regardless of the performance of the ASIC chip used by the miner, the Company’s proprietary software could statistically increase mining speeds by up to 30%, without affecting the miner’s power consumption.

Provided that the performance of Method “A” and / or Method “B” algorithms are confirmed, the goal is to run them on existing commercial miners to improve their performance, as indicated above, by replacing the native control software with QBT control . Software. Based on current test data, we would expect to see an immediate improvement in the overall performance of the mining rig, with no need for additional hardware investments.

To ensure the success of this approach, the Company is also working to modify the control software of the miner operating system.

Quantum computing

While the company believes its approach to quantum computing has great potential, it also believes it will be a few years before quantum computers are available that are powerful enough for the company to take full advantage of its approach.

Meanwhile, QBT continues to refine the quantum algorithm it has developed.


The company continues to work closely with its cryptographer, who has been consulting for QBT for 18 months. Our recent results for local improvements of the SHA-256 computation are currently being compared in order to reach a critical mass, which (following the May 23, 2022 RNS) could have the potential to justify filing a new patent application relating specifically to a proprietary ASIC implementation.


Pending confirmation of the consolidated results from both the cryptographic expert and the ML R&D teams, the FPGA / ASIC Input / Output interface and intra-ASIC communication protocols are under development.

At the same time, several performance evaluations of different architectures have now been preliminarily evaluated that could be included in the ASIC design implementation of Method “B”, with the expected result of demonstrating the efficiency of this hardware implementation method.

IT infrastructure

In recent months, the IT R&D platform has been improved, reaching nearly 100,000 GPU cores. In addition, a first set of ASIC 100TH / s miners has been acquired, where the ML Method A and Method B mining software will soon be installed.

As mentioned earlier, it is likely that more ASIC miners will be acquired shortly to accelerate Method “A” and Method “B” testing.

Research manager

QBT recently named Dr. Rita Pizzi, as Chief Research Officer. Dr. Pizzi is a former senior researcher and professor of Artificial Intelligence and Data Analysis at the Department of Computer Science of Milan University (http://pizzi.di.unimi.it/CV.html). Dr. Pizzi will be responsible for coordinating several research groups, working in close operational contact with Francesco Gardin, president and CEO of QBT. Dr. Pizzi will not be joining the council at this time.

Dr. Pizzi has been collaborating with the company for about 18 months.

Tax on research and development Relief

The Company, under HMRC’s Research and Development Tax Relief program, has received £ 109,000, net of consultant fees and commissions, from HMRC as a contribution to the Company’s research and development costs for 2021. A similar application will be made for research and development costs in 2022, at the beginning of 2023.

Francesco GardinQBT CEO and Executive Chairman commented: whilest the Company is still considering direct mining, a more immediate and less costly approach in terms of capital is leverage mining revenue with an existing BTC miner, who would be licensed to adopt the Company’s Method B. control software. The Company is currently exploring this path.

“We are engaged in an extremely demanding research and development effort to achieve competitive results. The amount of information processed to achieve these goals is enormous, researching and analyzing regularities in data spaces of large orders of magnitude. Verification test on the assumptions of regularity found is extremely challenging, hence the disparity in the confirmation times of the results between a discovery and its confirmation.

“I am therefore very pleased that, despite the long verification time this approach is taking, such regularities and correlations have been identified. Furthermore, the ability to control commercial ASIC mining chips with our Machine Learning methods could provide a tactical shortcut to generate revenue. This will allow us to continue with our proprietary ASIC chip design and work on our Quantum C.calculation algorithm, pending the availability of quantum ccomputer with enough qyoubit to run our software ”.

For further information please contact:

Quantum Blockchain Technologies Plc
Francesco GardinChief Executive Officer and Executive Chairman +39 335 296573

SP Angel Corporate finance (Appointed Consultant and Broker)
Jeff Keating +44 (0) 20 3470 0470
Kasia Brzozowska

Leandro (Financial PR)
Christian Taylor-Wilkinson +44 (0) 7795 168 157

About Quantum Blockchain Technologies Plc

QBT (AIM: QBT) is an AIM-listed investment company that has recently realigned its strategic focus to technology-related investments, with particular regard to the Quantum Computing, Blockchain, Cryptocurrency and AI sectors. The Company has embarked on an aggressive R&D and investment program in the dynamic world of Blockchain technology, which includes cryptocurrency mining and other advanced blockchain applications.

Glossary of terms

ASIC: An application-specific integrated circuit is an integrated circuit chip customized for a particular use, rather than intended for general use. ASIC chips are typically manufactured using MOS (metal-oxide-semiconductor) technology, such as MOS integrated circuit chips.

FPGA: A field programmable gate array is an integrated circuit designed to be configured by a customer or designer after manufacturing, hence the term “field programmable”. The FPGA configuration is typically specified using a hardware description language (HDL), similar to that used for an application-specific integrated circuit (ASIC).

GPU: A graphics processing unit (GPU) is a computer chip that renders graphics and images by performing quick mathematical calculations.

hashish: A hash is a mathematical function that converts an arbitrary length input into an encrypted output of a fixed length.

SHA-256: Secure Hashing Algorithm (SHA) -256 is the hash function and mining algorithm of the Bitcoin protocol, referring to the cryptographic hash function that outputs a 256-bit long value.

Qubit: A classic bit can be in two states, it can be zero or it can be one. A quantum bit or qubit, however, can be in some sort of zero state and one state at the same time. This situation is called superposition of (quantum) states. Qubits have very special properties: for example, it is not possible to make copies of qubits

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