Fin Capital Backs Project Eleven to Secure the Next Era of Digital Asset Infrastructure

- By Derek Wu, Associate

Google’s recent quantum announcement has shown the growing ability of quantum computers to solve real-world problems. While there is still debate around the time horizon of the technology, one fact remains clear: quantum computing is coming, and it will unlock algorithms that classical computers can’t solve.

The top concern when it comes to quantum computing has always been cryptography. Current encryption algorithms such as ECDSA, SHA-256, and RSA rely on one foundational assumption: factoring large numbers on classical computers gets exponentially harder as the numbers grow. One way to visualize this is with safe combinations. Imagine a safe with a 4-digit code. Even that small code presents millions of possibilities, and with each additional digit, the search space explodes. And this is where quantum computing changes the storyline. Enter Shor’s algorithm, a hybrid quantum–classical method capable of factoring large numbers efficiently, threatening the security assumptions that current-day encryption technologies rely on.

As it pertains to financial services, digital assets have the most quantum risk. Some estimates state that ~6.26 million BTC ($650 billion USD) are at risk of threat. If quantum computers can break these cryptographic algorithms, then any transaction authorization—including stablecoin transfers—could be forged. Given that stablecoins inherit the cryptographic assumptions of their host chains, this risk flows directly into the broader ecosystem.

We are excited to announce our investment in Project Eleven, a leading post-quantum cryptography startup that is tackling this issue. Project Eleven first publicly offered yellowpages, a public, anonymous, post-quantum proof of Bitcoin ownership. The company is building the infrastructure needed to secure and migrate current blockchains to PQ-safe standards.

Alex Pruden, the founder and CEO of Project Eleven, instantly impressed us with his passion and deep understanding of the digital assets space and the impending quantum risk. After spending years serving in the US Army, he dove deep into the blockchain world, notably spending time at GGV Capital (now Notable Capital), Coinbase, and A16z researching and studying blockchain and cryptocurrencies. He then served as CEO at Aleo, helping launch a private blockchain built on zero-knowledge proofs. Aleo is the first blockchain that enables private and compliant payments.

Quantum computing offers a transformative approach to computation that unlocks immense value but also poses serious risks. At Fin, we are excited to partner with a post-quantum cryptography company poised to help secure future transactions.