However, even with that progression, there are still jobs that classical computers are not powerful enough to do. The answer looks set to come from quantum computing. In this post, we will look at what quantum computing is and how it could revolutionize a long-standing industry such as banking.
What is Quantum Computing?
Quantum computers are expected to be a new kind of technology that can solve complex problems well beyond the capabilities of traditional systems. If you take an everyday problem like climate change, the intricacies of solving it are incredibly complex. A standard computer does not have the power or ability to even get close to genuinely understanding everything that is going on. The main reason is the endless amounts of data that computers need to process to generate an accurate decision.
A quantum computer is often referred to as a supercomputer. It has highly advanced processing power that can take masses of variables into account, helping predict weather patterns and natural disasters in the case of climate change.
Brief Technical Summary
A typical computer stores information in what is known as bits. In quantum computing, these are known as qubits. Qubits have certain properties that mean a connected group of them can provide way more processing power than binary bits from classical computing. In short, where binary bits store 1s and 0s to handle a task, qubits can represent numerous possible combinations of these simultaneously.
An example of this could be if running a travel agency. Lets say three people need to move from one place to another, Jenny, Anna and Steve. For that purpose, there are two taxis and the problem you want to solve is who gets into which taxi. However, we know that Jenny and Anna are friends, Jenny and Steve are enemies and Anna and Steve are enemies.
The aim would be to maximize the number of friend pairs and minimize the enemy pairs sharing the same taxi. A classical computer would store each possible solution with bits one at a time before being able to calculate a potential solution. However, a quantum computer will use qubits to represent all the solutions at the same time. It will find the best solution in a few milliseconds as it piles everything into just 1 operation.
The difference here is a traditional computer performs more and more calculations every time the data scales up, whereas a quantum computer will only ever have to process one operation.
In the real-world, one industry that could heavily benefit from this technology and processing power is banking.
Quantum Computing in Banking
In an article from Banco Bilbao Vizcaya Argentaria (BBVA) from October 2019, it was suggested that this kind of quantum computing power might fundamentally change the face of banking in time.
Encryption of personal data is critical to banking, with RSA-2048 being used at the highest levels. For a classical computer to find the key to decrypt the algorithm would take 1,034 steps. To put that into context, a processor capable of a trillion operations per second would still take 317 billion years to resolve the problem. Realistically, that makes decryption impossible.
However, a quantum computer could solve the decryption in just 107 steps. If the computer were running at a million operations per second, this calculation would only take 10 seconds to complete. The potential of quantum computing in this context is quite amazing. That said, we are still a long way off having enough processing power to reach those heights, but experts are working on it.
Researchers at Barclays Bank in collaboration with IBM have created a proof-of-concept quantum optimized application. The solution revolves around the transaction settlement process. A settlement works on a transaction-by-transaction basis where they are pushed into a queue and settled in batches. During a processing window, as many trades as possible from the queue are settled.
Trades are complex by nature according to Lee Braine, director of research and engineering at Barclays. Traders can tap into funds before the transaction has been cleared. They are settled if funding is available or if there is some sort of credit collateral facility.
In a quantum computing context, a small number of trades could, in theory, be done in your head. However, as you get up to 10 or 20 transactions, you might need to use a pen and paper. Any more than that and we start going into classical computing. However, as we get to hundreds of trades, the machines begin to experience limitations.
A bit like the travel agency example we gave earlier, a quantum computer could run masses of complex aspects of trading. Using a seven-bit qubit system, the team could identify certain features that were of sufficient complexity. The same calculations would need about 200 traditional computers.
Using an IBM machine, researchers at JP Morgan have demonstrated that they could simulate the future value of a financial product. They are testing the use of quantum computers to speed up intensive pricing calculations which would take traditional machine hours to compute. As portfolios become larger, the algorithms have greater complexity and could get to a point where they are impossible to calculate.
The research by the team has shown that a commercial-grade quantum computer can run the same calculations in a matter of seconds.
According to Deltec Bank, the Bahamas Banks are successfully testing quantum computers to solve problems that were previously very resource-intensive or impossible to complete. Although the technology is still some years away from changing the way banks calculate financial models due to complex hardware requirements, it is important to start testing now.
IBM themselves have stated they are a while away from a perfect solution with big breakthroughs still required but the time will certainly come.
- Quantum Computing Market 2019 Analysis by Key Players, Share, Trend, Segmentation and Forecast to 2026 - Instant Tech News - February 15th, 2020
- Chinese researchers smash the record for realising two entangled quantum memories at maximum distance - www.computing.co.uk - February 15th, 2020
- Quantum Computing: How To Invest In It, And Which Companies Are Leading the Way? - Nasdaq - February 14th, 2020
- DOE Workshop Begins Mapping the Future of Quantum Communications - insideHPC - February 14th, 2020
- Scientists discover how to use time crystals to power superconductors - Big Think - February 14th, 2020
- Quantum Computing Market With Four Main Geographies And Their Countries - Instant Tech News - February 14th, 2020
- Russian Quantum Center and Nissan have launched a project in the field of quantum chemistry - Research Snipers - February 14th, 2020
- Global Quantum Computing Market Newest Research Report In PDF With Forecast [2020-2029] : International Business Machines (IBM) Corporation, Google... - February 14th, 2020
- Budget 2020: Govt bets on AI, data analytics and quantum computing - Livemint - February 2nd, 2020
- This Week's Awesome Tech Stories From Around the Web (Through February 1) - Singularity Hub - February 2nd, 2020
- AI has great potential in transforming the world: Alphabet CEO Sundar Pichai - YourStory - February 2nd, 2020
- Budget 2020: New scheme to boost local manufacturing of mobiles, will iPhone get cheaper now? - India Today - February 2nd, 2020
- What Is Quantum Computing and How Does it Work? - Built In - January 30th, 2020
- IBM Just Called Out Google Over Their "Quantum Computer" - The National Interest Online - January 30th, 2020
- Quantum Computing releases its new software application called Mukai - Proactive Investors USA & Canada - January 30th, 2020
- Burning Things With Big Lasers In The Name Of Security - Hackaday - January 30th, 2020
- What Is Quantum Computing, And How Can It Unlock Value For Businesses? - Computer Business Review - January 27th, 2020
- The End Of The Digital Revolution Is Coming: Here's What's Next - Innovation Excellence - January 27th, 2020
- Healthcare venture investment in 2020: Quantum computing gets a closer look - Healthcare IT News - January 27th, 2020
- Delta Partners with IBM to Explore Quantum Computing - Database Trends and Applications - January 27th, 2020
- New Centers Lead the Way towards a Quantum Future - Energy.gov - January 27th, 2020
- ASC20 Finals to be Held in Shenzhen, Tasks Include Quantum Computing Simulation and AI Language Exam - HPCwire - January 27th, 2020
- Toshiba says it created an algorithm that beats quantum computers using standard hardware - TechSpot - January 27th, 2020
- Quantum networking projected to be $5.5 billion market in 2025 - TechRepublic - January 27th, 2020
- University of Sheffield launches Quantum centre to develop the technologies of tomorrow - Quantaneo, the Quantum Computing Source - January 27th, 2020
- 5 Emerging Technologies That Will Shape this Decade - San Diego Entertainer Magazine - January 27th, 2020
- Is Quantum Technology The Future Of The World? - The Coin Republic - January 12th, 2020
- Were approaching the limits of computer power we need new programmers now - The Guardian - January 12th, 2020
- Global Quantum Computing Market: What it got next? Find out with the latest research available at PMI - Pro News Time - January 12th, 2020
- Quantum Computing Technologies Market to Witness Huge Growth by 2020-2025, Latest study reveals - ReportsPioneer - January 12th, 2020
- Podcast: The Overhype and Underestimation of Quantum Computing - insideHPC - January 10th, 2020
- Charles Hoskinson Predicts Economic Collapse, Rise of Quantum Computing, Space Travel and Cryptocurrency in the 2020s - The Daily Hodl - January 10th, 2020
- Google and IBM square off in Schrodingers catfight over quantum supremacy - The Register - January 10th, 2020
- World High Performance Computing (HPC) Markets to 2025 - AI, IoT, and 5G will be Major Drivers for HPC Growth as they Facilitate the Need to Process... - January 10th, 2020
- Tucson Morning Blend Top 5 Tech Trends you'll love this year. Heather Rowe 1:27 - KGUN - January 6th, 2020
- Honeywell names Top 11 Innovations of 2019 - wingsmagazine.com - January 6th, 2020
- 19 Most In-Demand Tech Jobs in Silicon Valley (and the Companies Hiring) - Dice Insights - January 6th, 2020
- January 9th: France will unveil its quantum strategy. What can we expect from this report? - Quantaneo, the Quantum Computing Source - January 4th, 2020
- US Government Looks To Restrict Exports Of AI, Quantum Computing And Self-Driving Tech - WebProNews - January 4th, 2020
- News Content Hub - Five emerging technologies for the 2020s - Riviera Maritime Media - January 4th, 2020
- Superconductor or not? They're exploring the identity crisis of this weird quantum material. - News@Northeastern - January 3rd, 2020
- Year 2019 in Science: History of Humans, Ebola Treatment and Quantum Computing - NewsClick - January 3rd, 2020
- 5 tech that will explode in your life this decade - ETCIO.com - January 3rd, 2020
- Quantum Computing Market Utilities and Recycling In Global 2020 Outlook, Business Strategies, Challenges and Forecasts - Market Research Sheets - January 3rd, 2020
- Quantum Teleportation Has Been Achieved With the Help of Quantum Entanglement - Dual Dove - January 3rd, 2020
- The science fiction that became science fact in 2019 - SYFY WIRE - January 3rd, 2020
- Global Quantum Computing Market to Witness an Outstanding Growth During 2020-2029 - Neptune Pine - January 3rd, 2020
- Quantum Computing Technologies market by Size | Growth | Analysis | Trends and Forecasts to 2020-2025 Bulletin Line - Bulletin Line - January 3rd, 2020
- How This Breakthrough Makes Silicon-Based Qubit Chips The Future of Quantum Computing - Analytics India Magazine - December 28th, 2019
- 2020 Will be a Banner Year for AI Custom Chipsets and Heterogenous Computing; Quantum Computing Remains on the Far Horizon - Business Wire - December 28th, 2019
- Top 5: Scientific Breakthroughs That Made 2019 an Unforgettable Year of Human Progress - The Weather Channel - December 28th, 2019
- 2020 will be the beginning of the tech industry's radical revisioning of the physical world - TechCrunch - December 28th, 2019
- IBM and the U. of Tokyo launch quantum computing initiative for Japan | - University Business - December 25th, 2019
- IBM and the University of Tokyo Launch Quantum Computing Initiative for Japan - Martechcube - December 25th, 2019
- AI, 5G, 'ambient computing': What to expect in tech in 2020 and beyond - USA TODAY - December 18th, 2019
- The Quantum Computing Decade Is ComingHeres Why You Should Care - Observer - December 18th, 2019
- Shaping the technology transforming our society - Fermi National Accelerator Laboratory - December 17th, 2019
- Quantum Technology Expert to Discuss Quantum Sensors for Defense Applications at Office of Naval Research (ONR) - Business Wire - December 17th, 2019
- Comrehensive Report : Quantum Computing Market Global Analysis By Latest Trends, Share, Development And Growth By Regions To 2028 - Sound On Sound... - December 17th, 2019
- Anyscale, from the creators of the Ray distributed computing project, launches with $20.6M led by A16Z - TechCrunch - December 17th, 2019
- What WON'T Happen in 2020: 5G Wearables, Quantum Computing, and Self-Driving Trucks to Name a Few - Business Wire - December 16th, 2019
- Quantum computing leaps ahead in 2019 with new power and speed - CNET - December 12th, 2019
- Quantum computing could be the next big security breakthrough - ITProPortal - December 12th, 2019
- Quantum Computers Are the Ultimate Paper Tiger - The National Interest Online - December 12th, 2019
- D-Wave partners with NEC to build hybrid HPC and quantum apps - TechCrunch - December 12th, 2019
- Security leaders fear that quantum computing developments will outpace security technologies - Continuity Central - December 12th, 2019
- D-Wave Announces Promotion of Dr. Alan Baratz to CEO - HPCwire - December 12th, 2019
- Recent Research: Quantum Computing Market with Future Prospects, Key Players SWOT Analysis and Forecast To 2029 - Sound On Sound Fest - December 12th, 2019
- This Week in Tech: What on Earth Is a Quantum Computer? - The New York Times - December 7th, 2019
- Quantum Computers Are About to Forever Change Car Navigation - autoevolution - December 7th, 2019
- Amazon is now offering quantum computing as a service with Braket for AWS - The Verge - December 2nd, 2019
- ColdQuanta's Latest Ultracold Technology Heads to the International Space Station - Business Wire - December 2nd, 2019
- Researchers Discover New Way to Split and Sum Photons with Silicon - UT News | The University of Texas at Austin - December 2nd, 2019
- Archer Materials invited to chair quantum computing session at London conference - Proactive Investors Australia - December 2nd, 2019
- Archer Materials to chair Quantum Computing session at London Quantum.Tech Conference in 2020 - Proactive Investors Australia - November 30th, 2019
- The Future of Computing could be Magnetic - Robert Lea - Medium - November 30th, 2019
- Innovate, and grow - Economic Times - November 30th, 2019
- Tech news: The quantum internet is on the way - IOL - November 22nd, 2019
- Device Puts Photons in the Fast Lane - Optics & Photonics News - November 22nd, 2019
- Race is on to build quantum-proof encryption - Financial Times - November 21st, 2019