Quantum X Labs Inc. (NASDAQ:QXL) has completed its first demonstration of its Qatacomb quantum encryption technology on commercial quantum computing hardware, using IBM’s 156-qubit Heron r2 processor and the open-source Qiskit framework.
The Tel Aviv-based company reported that the experiment successfully reconstructed an encrypted image despite noise affecting the quantum processor. The demonstration marks a transition from theoretical development to testing on physical quantum hardware.
During the experiment, a recipient holding the correct encryption key recovered more than 90% of the image elements accurately and reconstructed the complete image without error.
Quantum X Labs also tested the system against a simulated adversary without access to the encryption key. According to the company, the simulated attacker was unable to obtain usable information from the transmission.
The demonstration was conducted on IBM’s Heron r2 processor, which contains 156 qubits, using the Qiskit software development framework.
The results indicate that Qatacomb was able to operate under the noise conditions encountered during the experiment, although further testing will be required to establish its performance across different environments.
Quantum X Labs describes Qatacomb as an encryption scheme designed to provide information-theoretic security, meaning its intended privacy guarantees rely on the structure of quantum states rather than the computational difficulty of solving mathematical problems.
Conventional encryption systems frequently depend on mathematical problems that are difficult for traditional computers to solve. However, sufficiently advanced quantum computers could potentially compromise several widely used encryption methods.
The company claims Qatacomb’s approach could provide security without relying on assumptions about an adversary’s computing capabilities.
These claims have not been independently verified, and the successful hardware demonstration does not establish that the technology is secure against all potential attacks.
The experiment represents an important technical milestone for Quantum X Labs as it seeks to demonstrate Qatacomb’s practical capabilities.
Testing on an operating quantum processor allows the company to evaluate the encryption scheme under real hardware conditions, including the effects of quantum noise.
However, the announcement did not provide details about commercial deployment plans, potential customers or expected revenue from the technology.
Further testing and independent security assessments will be necessary to determine whether Qatacomb can support larger-scale applications.
In addition to its quantum encryption activities, Quantum X Labs operates subsidiaries involved in digital advertising, enterprise artificial intelligence and grammatical error correction software.
The company has not disclosed how Qatacomb’s development could affect its broader financial performance or existing business operations.
Quantum X Labs’ first successful demonstration of Qatacomb on IBM quantum hardware represents progress towards evaluating the encryption scheme in practical computing environments.
The ability to reconstruct encrypted information despite processor noise provides an initial indication of the technology’s functionality.
However, the company’s information-theoretic security claims remain unverified, and further research will be needed to assess scalability, reliability and commercial potential.
Investors will be monitoring additional testing results, independent validation and any developments towards commercial applications.
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