The Case For Q-Ledger
Why Quantum-Safe Private Key Backup Matters
October 2025 | aernoud@q-ledger.app
Abstract
Q-Ledger solves cryptocurrency's most persistent problem: secure, permanent backup of private keys. By combining quantum-resistant encryption (X-Wing/ML-KEM-768) with Arweave's permanent distributed storage network, Q-Ledger provides a backup solution that is simultaneously more secure, more convenient, and dramatically more affordable than existing alternatives.
The $250 Billion Problem
20%
of all Bitcoin—over $250 billion—sits permanently inaccessible due to lost seed phrases and failed backup practices.
High-Profile Cases:
- ✗ James Howells threw away a hard drive containing 7,500-8,000 BTC (worth hundreds of millions)
- ✗ Stefan Thomas has only 2 attempts remaining to access ~7,000 BTC on an IronKey device
- ✗ QuadrigaCX collapse saw $215 million become inaccessible when CEO Gerald Cotten died as sole keyholder
- ✗ 2025 LA wildfires destroyed unknown quantities of hardware wallet backups stored in homes
"There are a million ways to back up a seed phrase. Nearly all of them have flaws."
— Jameson Lopp, Cryptocurrency Security Expert
Hardware Wallets: The Unsolved Backup Problem
Key Insight:
Hardware wallets solve active security (signing transactions safely), not backup security (recovering after disaster). They move you from digital vulnerability to physical vulnerability.
When you set up a Ledger, you write down a seed phrase on paper—the same physical vulnerability that causes the $250 billion loss problem.
Common Failure Modes:
41%
of first-time hardware wallet users face difficulties during setup and recovery
2-3%
of crypto users rely on hardware wallets as primary storage
Subscription Services: Trading Sovereignty for Cost
Ledger Recovery ($9.99/month)
Encrypts and splits seed phrases across three custodians, requiring 2-of-3 for recovery.
10-Year Cost: $1,349 (device + subscription)
Trust required: KYC verification, three corporate entities, belief they won't be hacked, subpoenaed, or bankrupted.
Vault12 Guard ($19.99-29.99/month)
Uses "guardians"—trusted contacts who hold encrypted shards.
10-Year Cost: $2,400-3,600
Challenges: Guardians must maintain devices, remain available, not collude, not die or become estranged.
How Q-Ledger Solves This
1 Permanent Distributed Storage (Arweave)
- Blockchain-based distributed network across global nodes
- One-time payment for permanent storage (typically <$1 per backup)
- Survives even if Q-Ledger the company disappears
- No subscription can lapse, no credit card can expire
- Accessible from anywhere with internet connection
2 Quantum-Safe Encryption
Q-Ledger uses X-Wing—Apple's quantum-resistant encryption in iOS 26, built on ML-KEM-768 standards.
Why it matters: Since Arweave stores data permanently, Q-Ledger protects against "harvest now, decrypt later" attacks where adversaries collect encrypted backups today to decrypt in the future.
3 "Hiding in Plain Sight" Security
Q-Ledger's encrypted backups are publicly viewable on Arweave—and that's a security advantage.
- No private channels where data could be secretly exfiltrated
- No server to hack, no employee with access
- Security researchers can audit the entire system
- Without your encryption keys, nobody can read your private keys
4 One-Time Payment Model
| Solution | 10-Year Cost |
|---|---|
| Q-Ledger | $0-12 |
| Ledger Recovery | $1,349 |
| Vault12 Guard | $2,400-3,600 |
| Hardware + Metal Backup | $90-160 |
The Security Argument
The most common objection: "What if the encryption is broken?"
The Blockchain Dependency Argument
If Q-Ledger's encryption is compromised, the entire cryptocurrency ecosystem has already collapsed.
- Blockchain signatures use the same cryptographic primitives
- If quantum computers can break X-Wing, they can break Bitcoin's secp256k1
- Your backup is no more vulnerable than the blockchain itself
- The ecosystem will migrate before collapse—and your backup migrates with you
Active vs. Backup Security
Hardware Wallets (Active Security)
- ✓ Protect keys during transaction signing
- ✓ Prevent malware theft during active use
- ✗ Don't solve backup failure
- ✗ Don't solve physical loss
Q-Ledger (Backup Security)
- ✓ Protects keys permanently
- ✓ Survives device loss, destruction
- ✓ Ensures recovery 10, 20, 50 years from now
- ✓ Company-independent recovery
The $250B Bitcoin loss problem is a backup security failure, not an active security failure.
Addressing The Main Objection
"What if Q-Ledger steals my private keys?"
This is mathematically impossible. Here's why:
- On-device encryption: Your private keys are encrypted on your iPhone before they ever leave your device. The Q-Ledger app performs all encryption locally.
- No plaintext transmission: Q-Ledger—the app, the company, the developer—never sees your unencrypted private keys. Only encrypted data leaves your device.
- Direct to blockchain: The encrypted data goes directly to Arweave's public blockchain. There are no Q-Ledger servers in between.
- No private channels: Unlike traditional backup services with private APIs and servers, there's nothing to intercept, no employee database to breach, no infrastructure to hack.
The counterintuitive security advantage: Q-Ledger's encrypted backups are publicly visible on Arweave. Anyone can see the encrypted blob—but without your encryption keys, nobody can read it. This "hiding in plain sight" model eliminates private channels where data could be secretly exfiltrated. Even if someone compromised Q-Ledger entirely, they'd get nothing but unreadable ciphertext.
Verify It Yourself
Don't take our word for it. You can independently verify Q-Ledger's network behavior using standard proxy tools:
- Install a network proxy tool on your Mac or PC
- Configure your iPhone to route traffic through the proxy
- Use Q-Ledger to store a test wallet
- Observe: the app only communicates with arweave.net
- Verify: the transmitted data is encrypted ciphertext, not readable keys
You'll see zero connections to any Q-Ledger servers—because there aren't any. Your encrypted data goes directly to Arweave's public blockchain.
Conclusion
Q-Ledger offers a better path—one that protects against quantum computers, company bankruptcies, physical disasters, and human error, without requiring users to choose between sovereignty and usability.
Q-Ledger works alongside your existing wallet setup: hot wallet for convenience, hardware wallet for active transactions, Q-Ledger for permanent private key backup. Each serves a different purpose; Q-Ledger ensures you never lose access.