Newton’s Laws of Innovation: Meet the Founders of BTQ

BTQ Technologies was founded by brothers Olivier and Nicolas Roussy Newton. Olivier serves as the Chief Executive Officer (CEO), while Nicolas holds the position of Chief Operating Officer (COO). (BTQ)

Olivier Roussy Newton

Olivier Francois Roussy Newton is a prominent figure in the quantum technology and blockchain industries. He is a seasoned innovator based in Zug, Switzerland and serves as the Managing Director and CEO of BTQ. In addition to his role at BTQ, Olivier has founded and co-founded multiple ventures with his brother like Latent Capital, an incubation and investment vehicle that focuses on cryptographic infrastructure. Olivier also co-founded DeFi Technologies, a company dedicated to investing in and managing trading technologies. His entrepreneurial ventures extend into the blockchain domain, where he founded HIVE Blockchain Technologies, a company pioneering blockchain computing.Olivier has been an advocate for quantum-safe encryption, demonstrated through his involvement with ZY4, a company specializing in end-to-end quantum-safe encryption solutions. (Olivier Roussy Newton)

Nicolas Roussy Newton

Nicolas Alexandre Roussy Newton serves as the Chief Operating Officer (COO) of BTQ Technologies. Beyond BTQ, Nicolas has a robust career in technology and investments. He is a co-founder of ZY4, where he contributes to quantum-invulnerable encryption technologies. His expertise in structuring investments is further evidenced by his role as a partner at Latent Capital. Nicolas is an advocate for quantum technologies and their role in shaping the future of cybersecurity. He participates in thought leadership panels, such as one at the University of Waterloo, discussing Canada’s readiness for quantum-secure cybersecurity. (Nicolas Roussy Newton)

Founding Story

The Roussy Newton brothers established BTQ Technologies in 2021 in Vancouver, Canada. Their goal was to address the emerging security risks posed by quantum computing. They aimed to develop post-quantum cryptography solutions to secure mission-critical networks. Their combined experience in technology and finance positioned them to lead BTQ in the evolving quantum technology sector.

The Quantum Gold Rush: Mining the Future of Tech

The quantum technology market is experiencing rapid growth, driven by advancements in quantum computing, communications, and sensing. These technologies leverage quantum mechanics principles to perform complex computations, enhance secure communications, and improve measurement precision.

Market Size and Growth

In 2023, the global quantum computing market was valued at approximately USD 885.4 million. Projections indicate significant growth, with expectations to reach USD 12,620.7 million by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 34.8% during the forecast period. (Fortune Business Insights)

Key Drivers

Several factors contribute to this growth:

• Increased Investments: Governments and private sectors are investing heavily in quantum research and development. For instance, the U.S. government has allocated substantial funds to quantum initiatives, aiming to maintain a competitive edge in emerging technologies.
• Technological Advancements: Continuous improvements in quantum hardware and software are accelerating the development of practical quantum applications. Companies like IBM and Google have announced roadmaps toward developing advanced quantum computing technology.
• Diverse Applications: Quantum technologies have potential applications across various sectors, including healthcare, finance, automotive, and defense. For example, in pharmaceuticals, quantum computing can simulate larger, more complex molecules, potentially revolutionizing drug discovery.

Challenges

Despite the promising outlook, the quantum technology market faces challenges:

• Technical Hurdles: Developing stable and error-corrected quantum systems remains a significant challenge. Quantum bits, or qubits, are susceptible to errors from environmental noise and hardware imperfections.
• Talent Shortage: There is a limited pool of professionals skilled in quantum mechanics, computer science, and mathematics, which is essential for advancing quantum technologies. (MarketsandMarkets)

The quantum technology market is poised for substantial growth, with expectations of creating value worth trillions of dollars within the next decade. As technological breakthroughs continue and investments increase, quantum technologies are set to revolutionize various industries, offering solutions to complex problems beyond the capabilities of classical computing.

Mission Quantum-possible: BTQ’s Vision for a Safer Digital Tomorrow

Mission

BTQ Technologies’ mission is to pioneer security solutions that safeguard critical digital infrastructure against quantum threats. They aim to leverage advanced quantum technologies and post-quantum cryptography (PQC) to address vulnerabilities in conventional encryption methods. This focus on creating quantum-resistant solutions positions BTQ at the forefront of cybersecurity for the quantum computing era (About BTQ).

Vision

BTQ envisions a future where quantum technology enhances security and efficiency across industries. They are dedicated to accelerating the use of quantum computing for practical applications, particularly in secure consensus protocols. By combining quantum mechanics with zero-knowledge proofs, BTQ aims to deliver efficient, scalable, and quantum-proof solutions to meet the rising need for security in digital transformations.

Problems They Solve

With quantum computing progressing rapidly, traditional encryption methods face potential threats from quantum attacks. Current cryptographic systems may not withstand quantum-based decryption methods, putting critical data at risk. BTQ addresses this challenge by offering post-quantum cryptographic solutions, designed specifically to protect against these emerging vulnerabilities. Their technologies secure mission-critical networks, ensuring that sensitive data and infrastructure remain protected even as quantum computing capabilities evolve.

Business Model

BTQ operates on a product-driven business model that emphasizes the development and deployment of quantum-resistant software and hardware solutions. Their offerings include both cloud-based software and specialized hardware that businesses and governments can integrate into their systems to safeguard against future quantum threats. BTQ’s products cater to various sectors, including finance, defense, and healthcare, where data security is paramount. They also engage in research and development, often collaborating with experts in cryptography and quantum mechanics to innovate and refine their products continuously.

PQu-be or Not to Be: BTQ’s Toolbox of Tomorrow

PQScale

PQScale is an advanced solution for post-quantum signature scaling. It leverages lattice-based cryptography and zero-knowledge proofs to significantly compress digital signatures, offering cost-effective and high-speed processing suitable for quantum-resistant applications. (PQScale)

1. Quantum-Safe Signature Compression: PQScale reduces the size of post-quantum signatures by over 10 times compared to the smallest NIST-approved algorithm, reducing signature sizes from 666 bytes to a more manageable scale. This helps manage data overhead in blockchain systems, preventing signature bloat.
2. Signature Aggregation: Through the aggregation of multiple individual signatures into one, PQScale preserves transaction data and enhances processing efficiency. This also reduces storage requirements, as the combined signature of 1,722 Falcon-based digital signatures is condensed to around 94 KB, which is only 9% of the original unaggregated size. For larger aggregations, such as 4,096 signatures, the storage demand drops to just 5% of the original size.
3. Zero-Knowledge Proofs (zk-SNARKs): PQScale incorporates zero-knowledge proofs to validate message integrity without exposing sensitive data. This enhances privacy while ensuring cryptographic security. BTQ specifically designed a quantum-safe zk-SNARK tailored for PQScale, allowing the compression process to operate without compromising data confidentiality.
4. Blockchain Compatibility and NIST Compliance: PQScale integrates smoothly with both Layer 1 and Layer 2 blockchain networks. It offers NIST-compliant solutions, leveraging the Falcon algorithm (a NIST-recognized post-quantum algorithm) for added security, which makes it versatile for use across blockchain ecosystems, decentralized applications, and digital transaction protocols.
5. Broad Application and API Support: PQScale’s APIs enable easy integration with blockchain networks, bridging protocols, stablecoin architectures, and other applications needing quantum-resistant security. This flexibility allows for implementation within private data centers or cloud environments.

Keelung

Keelung is a user-friendly toolkit designed to simplify the development of zero-knowledge proofs (ZKPs) for developers, even those without extensive cryptography experience. It achieves this by using a domain-specific language (DSL) embedded in Haskell and an advanced compiler, making the creation of reliable ZKPs more accessible. (Keelung)

1. Zero-Knowledge Proof Development: Keelung enables developers to write ZKP programs in a streamlined, abstracted environment, which undergoes several compilation stages, including elaboration, type erasure, optimization, and circuit construction. This process generates efficient Rank-1 Constraint System (R1CS) circuits needed for ZKPs.
2. Compilation Stages:
   • Elaboration: Converts high-level constructs like loops into simple instructions, stripping unnecessary syntactic elements.
   • Type Erasure: Removes type distinctions to simplify the final R1CS circuit, a practice that reduces computational overhead.
   • Optimization: Simplifies expressions into smaller constraints, removing redundant ones to minimize the size of the ZK circuit.
   • Circuit Construction: Generates an R1CS circuit by translating constraints into polynomials to meet ZKP requirements.
3. Post-Quantum Security: Keelung includes both classical and post-quantum cryptographic primitives, ensuring long-term security. This is crucial as quantum computing capabilities advance, potentially challenging traditional cryptographic methods.
4. Mobile and Hardware-Accelerated Proof Generation: Keelung supports mobile proof generation, allowing zkApps to function on devices with limited resources. Additionally, it plans to integrate hardware acceleration for faster ZKP generation.
5. Developer-Friendly Interface: With its high level of abstraction and support within Haskell, Keelung is accessible to a broad range of developers, enabling more efficient ZKP development without extensive cryptographic knowledge.

Kenting

Kenting is an FPGA-based hardware accelerator developed to optimize zero-knowledge proof (ZKP) computations. It integrates hardware and software to significantly speed up the generation of ZKPs, a critical function in secure cryptographic solutions. (Kenting)

1. FPGA-Based Architecture: Kenting uses a Field-Programmable Gate Array (FPGA), particularly suited for handling complex and resource-intensive tasks like ZKP computation. This hardware is configured to accelerate essential components of ZKPs, such as the Number Theoretic Transform (NTT), which plays a crucial role in efficiently generating proofs.
2. SDAccel Integration for Hardware-Software Synergy: Kenting integrates with SDAccel to merge hardware acceleration with software control, providing a cohesive environment that enhances both speed and efficiency. Data is processed through the PCIe module from HAL and OpenCL APIs, allowing Kenting to process and return data to the CPU faster than traditional software solutions.
3. Performance and Efficiency:
   • Speed Improvement: For example, Kenting reduces the calculation time for certain ZKP tasks by up to 100 times compared to purely software-based solutions. Without FPGA acceleration, tasks may take thousands of milliseconds, but Kenting brings this down to single-digit millisecond ranges.
   • Resource Utilization: Using a Xilinx U55c FPGA, Kenting efficiently uses logical and memory resources, including Look-Up Tables (LUTs), Block RAM (BRAM), and Digital Signal Processing (DSP) units, to achieve high performance while minimizing resource consumption.
   • Throughput: Kenting achieves a throughput of up to 862,000 NTT operations per second, which represents an 86-fold increase over software execution on conventional CPUs.
4. Complementary Role with Keelung: Designed to work alongside BTQ’s Keelung DSL, Kenting enhances ZKP-related computations initiated in Keelung, making it an ideal solution for developers looking for both ease of use and high performance in ZKP development.

Preon

Preon is an advanced cryptographic platform designed to offer post-quantum security through adaptive, dynamic cryptography. It leverages general-purpose proving systems and a unique signature scheme to address the complexities of securing data in the quantum age. (Preon)

1. Quantum-Resistant Signature Scheme: Preon uses a post-quantum signature scheme built on a general-purpose proving system, specifically designed to adapt to quantum-era challenges. This proving system is based on the Fiat-Shamir transformed interactive protocol, allowing a prover to demonstrate knowledge of a “secret witness” for a particular statement without revealing the secret itself, forming the basis of secure signature generation.
2. Security Levels and Configurations:
   • Preon offers several configurations with varying security levels—128, 192, and 256 bits—to accommodate different application needs. Each level has three versions (A, B, and C), with each configuration balancing security and signature size.
   • For example, at the 128-bit security level:
     • Preon128A: Secret key size of 16 bytes, public key size of 32 bytes, and a signature size of 130 KB.
     • Preon128C: Secret key size of 16 bytes, public key size of 32 bytes, and a larger signature size of 1,261 KB.
   • Similar configurations are available at 192- and 256-bit levels, with corresponding increases in key and signature sizes as security demands increase.
3. Efficient Key Generation: Preon boasts a rapid key generation process, with all configurations generating keys in under 2 microseconds. This speed allows Preon to support applications that require frequent key refreshes without compromising on security.
4. Adaptability and Future-Proofing: Beyond current applications, Preon is engineered to support future cryptographic developments, providing a flexible platform for integrating more advanced cryptographic techniques as quantum technology progresses. This adaptability ensures that Preon can meet evolving security standards over time.

QPoW

QPoW (Quantum Proof-of-Work) is an innovative consensus algorithm for blockchain that uses quantum technology, specifically NISQ (Noisy Intermediate-Scale Quantum) hardware, to validate transactions in a highly energy-efficient manner. Unlike traditional Proof-of-Work (PoW) algorithms, QPoW employs quantum methods to significantly reduce the energy consumption typically associated with blockchain consensus. (QPoW)

1. Quantum-Based Proof-of-Work: QPoW uses boson sampling, a quantum computing process where photons are sent through a linear optical interferometer, and their configurations are sampled at the output. This process serves as a quantum analog to traditional hashing in PoW, requiring less energy while achieving the same goal of consensus.
2. Energy Efficiency:
   • Traditional PoW relies on energy-intensive inverse hashing problems, where computing resources solve complex mathematical functions to validate transactions, driving up power consumption. For example, a single Bitcoin transaction can consume as much energy as a typical U.S. household over 37 days.
   • QPoW replaces these hashing computations with quantum boson sampling. BTQ research has shown that this method can achieve distributed consensus using a fraction of the energy required by classical networks.
3. Maintaining the “Progress-Free” Condition:
   • In classical PoW, quantum algorithms like Grover’s algorithm could potentially disrupt the protocol by enabling faster solution discovery, which could compromise network security.
   • QPoW avoids this risk by leveraging an inherently quantum protocol. Each boson sample remains independent, ensuring that the probability of solving a PoW problem does not increase unfairly over time, thus preserving the blockchain’s stability.
4. Technical Implementation:
   • QPoW nodes use Coarse-Grained Boson Sampling to convert the vast configuration space of photons into a manageable, polynomial-sized one. These configurations are then post-processed and categorized to reach consensus.
   • By using boson sampling, QPoW can outperform classical simulations by orders of magnitude in speed and energy efficiency, especially as the number of input photons (N) increases. Research has shown that quantum energy advantages become particularly notable when N reaches 10 or higher.
5. Future of Energy-Efficient Blockchains: QPoW aims to establish a quantum-secure and eco-friendly framework for blockchain validation, paving the way for sustainable blockchain ecosystems. BTQ envisions QPoW as an essential building block for future blockchain networks that will benefit from reduced operational costs and lower environmental impact.

QByte

QByte is a specialized cryptographic solution designed for secure data transfer in a quantum-resistant format. QByte emphasizes long-term security by employing advanced post-quantum cryptography (PQC) techniques to protect sensitive data from the potential threats posed by quantum computing advancements. (QByte)

1. Quantum-Resistant Encryption:
   • QByte uses PQC algorithms that are specifically designed to resist attacks from quantum computers, which threaten traditional encryption methods by being capable of solving complex problems (such as factoring large primes) significantly faster.
   • By implementing algorithms like lattice-based cryptography or hash-based techniques, QByte ensures data security that is resistant to both classical and quantum-based attacks.
2. Data Integrity and Authentication:
   • QByte employs cryptographic signatures to ensure that data has not been tampered with during transmission, providing both integrity and authenticity.
   • It uses secure, verifiable methods to authenticate data sources, which is crucial in applications where data authenticity is paramount, such as in government communications, financial transactions, or critical infrastructure.
3. Scalability and Efficiency:
   • QByte is optimized for scalability, designed to handle high volumes of data transfer without compromising performance. This makes it suitable for enterprise and cloud applications where large data transfers are frequent.
   • BTQ has designed QByte to work efficiently within various network infrastructures, ensuring seamless integration with both existing and next-generation systems.
4. Flexibility and Interoperability:
   • QByte’s architecture supports a range of quantum-resistant algorithms, allowing it to adapt to advancements in PQC research. This flexibility ensures that QByte can evolve with emerging quantum technologies, providing continuous protection.
   • QByte is also compatible with standard communication protocols, making it interoperable with other cryptographic tools and infrastructure components commonly used in enterprises.
5. Future-Proofing for Post-Quantum Security:
   • As quantum computing advances, QByte provides a secure means to future-proof data transmissions and storage, offering organizations a critical tool to secure their communications infrastructure against quantum threats.
   • BTQ envisions QByte as an integral part of a post-quantum security strategy for enterprises, helping them to transition smoothly to a secure environment in anticipation of a quantum-enabled future.

Decrypting BTQ: The Technology Behind the Qubit

Post-Quantum Cryptography (PQC)

BTQ Technologies focuses on developing cryptographic solutions that can withstand quantum computing attacks. Traditional encryption methods, like RSA and ECC, are vulnerable to quantum algorithms such as Shor’s algorithm. BTQ addresses this by implementing lattice-based cryptography, which is considered resistant to quantum attacks.

Zero-Knowledge Proofs (ZKPs)

BTQ utilizes zero-knowledge proofs to enhance privacy and security. ZKPs allow one party to prove knowledge of information without revealing the information itself. This technology is crucial for secure authentication and confidential transactions. BTQ’s Keelung toolkit simplifies the development of ZKP applications, making it accessible for developers.

Quantum Proof-of-Work (QPoW)

BTQ has developed a Quantum Proof-of-Work (QPoW) algorithm to improve blockchain security and efficiency. Traditional proof-of-work mechanisms are energy-intensive. QPoW leverages quantum sampling techniques to authorize blockchain transactions more efficiently, reducing energy consumption and enhancing security.

Processing-in-Memory Technology

In September 2024, BTQ acquired Radical Semiconductor’s processing-in-memory technology portfolio. This technology integrates processing capabilities directly into memory hardware, enabling faster and more secure cryptographic operations. It supports a wide range of cryptographic primitives and is particularly effective for post-quantum algorithms.

Collaborative Research and Development

BTQ actively collaborates with academic institutions and industry partners to advance quantum technologies. In November 2024, BTQ announced a research collaboration with Macquarie University to integrate quantum processing into communication protocols, aiming to enhance speed, security, and energy efficiency.

Hardware Acceleration

BTQ’s Kenting product focuses on hardware acceleration for zero-knowledge computation applications. By providing dedicated hardware solutions, Kenting enhances the efficiency of cryptographic operations, making them more practical for real-world applications.

Quantum Risk Assessment

BTQ offers QByte, a quantum risk calculator that evaluates qubit progress, gate reliability, and cryptographic threats. This tool helps organizations assess their vulnerability to quantum attacks and plan appropriate security measures.

Quantum Creds: BTQ’s Impact in the Tech Galaxy

In November 2024, BTQ partnered with Macquarie University to advance quantum algorithms and secure communications. This collaboration integrates quantum processing into communication protocols, enhancing speed, security, and energy efficiency. (Yahoo Finance)

BTQ’s involvement in the Quantum Information Standards Alliance (QuINSA) as a founding member underscores its commitment to establishing international standards in quantum communication, computing, and sensing. This participation aligns BTQ with global leaders like IBM and AWS, promoting international collaboration and innovation in the quantum industry. (Yahoo Finance)

Mitacs Accelerate project 

In August 2024, BTQ Technologies received approval for a Mitacs Accelerate project titled “Enabling Efficient Zero-Knowledge Proofs-Based Post-Quantum Digital Signature Schemes.” This project, supervised by Professor Guang Gong at the University of Waterloo, focuses on the efficiency and commercial implementation of Preon, a post-quantum digital signature scheme. The Mitacs Accelerate program provides funding to support this research. (Financial Markets)

Hon Hai Research Institute Agreement

In November 2023, BTQ’s subsidiary, BTQ AG, entered a Research and Collaboration Agreement with Hon Hai Research Institute, a key think tank for Hon Hai Technology Group (Foxconn) to promote the standardization of post-quantum cryptography (PQC). (Yahoo Finance)

ID Quantique Memorandum of Understanding

In July 2024, BTQ Technologies and ID Quantique signed a Memorandum of Understanding to co-develop an authentication system combining Quantum Random Number Generators (QRNG) and Post-Quantum Cryptography (PQC). ID Quantique is a leader in quantum cryptography, and this partnership aims to create cutting-edge solutions addressing security challenges posed by both classical and quantum computing threats. (Financial Markets)

Quantum Information Standards Alliance (QuINSA) Membership

BTQ is a founding member of the Quantum Information Standards Alliance (QuINSA), which includes global leaders like IBM and AWS. QuINSA focuses on establishing international standards in quantum communication, computing, and sensing. (BTQ)

Mitacs Accelerate Project with the University of Waterloo

In August 2024, BTQ received approval for a Mitacs Accelerate project titled “Enabling Efficient Zero-Knowledge Proofs-Based Post-Quantum Digital Signature Schemes.” Supervised by Professor Guang Gong at the University of Waterloo, this project focuses on the efficiency and commercialization of BTQ’s Preon algorithm. The Mitacs Accelerate program provides funding to support this research. (Nasdaq)

Funds and Figures: BTQ’s Bottom Line in the Quantum Economy

In August 2024, BTQ Technologies announced approval for a Mitacs Accelerate project titled “Enabling Efficient Zero-Knowledge Proofs-Based Post-Quantum Digital Signature Schemes.” The Mitacs Accelerate program has awarded BTQ up to CAD 435,000 to support this research, which is set to continue until July 2026. They also has secured investment from Quadrilium Ventures, a venture capital firm specializing in seed and early-stage blockchain companies.  (PR Newswire)

As of June 30, 2024, BTQ Technologies reported a trailing twelve-month revenue of CAD 90,573. This figure reflects the company’s early-stage status and ongoing efforts to commercialize its quantum security solutions. (The Wall Street Journal)

The company has also reported operating expenses totaling CAD 9,262,622, resulting in an operating loss of CAD 9,172,049. These figures indicate significant investment in research and development, a common characteristic of companies in the nascent quantum technology sector. (Yahoo Finance)

Financial Position

BTQ Technologies maintains a focus on innovation and development, as evidenced by its financial statements. The company reported total assets of CAD 1,452,000 and total liabilities of CAD 2,230,000, resulting in a negative shareholder’s equity of CAD 239,264. This financial position underscores the company’s investment in developing its product offerings and expanding its market presence. (The Wall Street Journal)

Market Capitalization

As of November 2024, BTQ Technologies’ stock price was CAD 0.21, with a market capitalization of approximately CAD 25.9 million. This valuation reflects investor interest in the company’s potential within the quantum technology and cybersecurity markets. (PitchBook)

Shaping the Future: From Quantum Sparks to Digital Firewalls

BTQ Technologies leads the charge in securing digital infrastructure against quantum computing threats. They specialize in post-quantum cryptography, creating innovative solutions like PQScale and Preon to protect sensitive data. Their work ensures that digital systems remain secure as quantum computing evolves, threatening traditional encryption methods.

Their products improve blockchain efficiency, enhance cryptographic tools, and secure communication protocols. With collaborations and groundbreaking research, BTQ is a trusted player in the quantum security market. They are paving the way for a safer digital future.

The story of BTQ Technologies is a reminder that every idea, when backed by passion and innovation, can create a real impact. If you found this article insightful, there’s much more to explore. Venture Kites is your destination for in-depth articles about startups, groundbreaking technologies, and entrepreneurial success stories. Learn from other ventures shaping the future of their industries.