Quantum computers are computers based on quantum mechanics but that sort of process information like conventional computers. Rather than being either zero or one, quantum bits could be both and yet be both.
Learn how to get involved in this burgeoning industry from Katten’s Daniel Davis and Alexander Kim.
Investing in Quantum Computing
Quantum computing could do a lot more computation-intensive things faster than the traditional computer and it will have lots of benefits in areas such as AI, material science and simulation.
But this same technology might compromise secure systems, such as public blockchains for cryptocurrency trades. Threat actors might take quantum computing and hack cryptographic algorithms that secure crypto payments now and exploit it with quantum computing.
Finding quantum-proof cryptographic solutions will incite industry-wide innovation unlike anything before but create near-to-medium term market volatility as investors worry that quantum computing will disrupt cryptographic protocols and infrastructure.
A third method for investing in the new emerging quantum computing space are exchange-traded funds (ETFs). Defiance Quantum ETF (QTUM) for instance provides exposure to companies working on the quantum technology. It might be another opportunity to invest in US tech giants such as Google, IBM and Microsoft, or even small quantum start-ups such as IonQ; but be very selective of those because most continue to fail and require substantial amounts of capital to manufacture their products.
Quantum Computing Applications
Quantum computers rely on the laws of quantum mechanics to compute information completely unlike conventional computers, and therefore can solve hard problems faster than they can by an order of magnitude.
Simulation can also make big contributions for drug development, manufacturing processes and supply chains across the world, so engineering firms, banks and airlines are all investing in the technology.
There are many other benefits of quantum computers that will also drive the decision making and time-to-market of the products. They are much faster because they have a lot more processing power, so they can get work done much quicker than ordinary computers – in hours or minutes rather than days or weeks.
Quantum computers are more storable and precise, but they’re susceptible to quantum computation and so asymmetric cryptography algorithms in blockchain networks are vulnerable. For defence against quantum attacks, various experiments have built quantum-proof technology such as the eXtended Merkle Signature Scheme (XMSS), with one-use locks that a quantum computer would have a harder time prying open than others.
Quantum Computing Market
Because quantum computers can be a much faster way to deal with information than ordinary computers, quantum computing solves big problems many times faster. The risk that it will eavesdrop on existing blockchain security mechanisms has, unfortunately, put some investors off betting on quantum technology.
As per application, the quantum computing market worldwide in 2023 will be classified with an outsized market share by the banking sector. They leverage quantum technology to analyze data faster, as well as for managing risk, fraud detection and decisions making.
Quantum computing may be able to provide a panacea for the explosion of machine learning: the acceleration of AI models. This might come into play especially as AI solutions take more roles in the healthcare, financial, automotive and other industries.
Quantum Computing Companies
There are a few listed quantum computing companies. They develop quantum computers and the hardware associated with them (sensors and data acquisition devices) and help overcome its big hurdles (errancy and cost).
A quantum software developer called Classiq has an app to simplify experiments using quantum algorithms. Their platform allows programmers to quickly create complex quantum circuits and then execute them using Amazon Braket quantum computing service of Amazon Web Services.
IBM is an industry giant that is the master of everything tech-related – including quantum computing. Its current aim is to build a quantum computer that can do some computationally complex calculations in an exponential way, as opposed to classical computers.
