LRZ successfully integrated quantum computing processors into a conventional computer.
Quantum computing presents many use cases in finance, but it could also undermine the cryptographic power of DLTs, Bitcoin, and other cryptocurrencies.
Integration of Quantum Computing Tech in Conventional Computer
The second half of the year marked the announcement of the integration of quantum computing into a supercomputer. The SuperMUC-NG was the brainchild of the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences and Humanities. The center developed the hybrid system in collaboration with the Q-Exa consortium headed by IQM Quantum Computers.
Germany’s Federal Ministry of Education and Research (BMBF) funded the project “Quantum Computer Extension for Exascale HPC” (Q-Exa), which paved the way for the milestone. The ministry invested €40 million in the program.
The SuperMUC-NG features the merger of IQM’s 20 qubit quantum processor units (QPU) with conventional computer technology. Researchers at LRZ are currently piloting the hybrid system for research and everyday operations. They are continuing to develop the system to expand its use cases in high-performance computing (HPC).
LRZ and Q-Exa achieved this feat by leveraging the great strides made by the technology’s pioneers, namely giants such as IBM, Microsoft, Google, Amazon, and Meta.
The Quantum Advantage
Quantum computers could advance automation in different industries besides research. Aram Harrow, Assistant Professor of Physics at the Massachusetts Institute of Technology (MIT), believes it could outperform conventional computers in terms of machine learning, mitigating errors, voice or facial recognition technologies, autonomous vehicles, and simulation technologies.
Jeremy O’Brien, Director of the Centre for Quantum Photonics at the University of Bristol, echoed Harrow’s sentiment. However, he foresaw strong opposition coming from the financial industry because of the technology’s potential impact on the sector. In a nutshell, it could render several products and services obsolete.
Meanwhile, IBM has already pinpointed several use cases for quantum computing in finance. These include targeting, prediction, trading optimization, and risk profiling.
A Threat to DLTs, Bitcoin, and Cryptocurrencies
A new paper published by Nature Communications, titled “Quantum advantage and stability to errors in analogue quantum simulators,” further highlighted how quantum advantage could be instrumental in solving the many-body problem. It presented a better model of error mitigation than modern systems.
Without delving too much into the jibber-jabber of particle physics, the technology could work well in harmonizing transactions across different timeframes. On the other hand, some analysts expect this innovation to shake the very foundation of digital ledger technologies (DLTs), especially Web3 and cryptocurrencies, sometime in the future.
Researchers Divesh Aggarwal and his associates forecasted that Bitcoin (BTC) could be more at risk in the advent of this disruption. In 2017, they estimated that quantum computing systems in 2027 could easily bypass the digital asset’s cryptography, which utilizes the elliptic curve signature scheme.
For this reason, the group proposed a more quantum-resistant proof-of-work model called “Momentum.” It is capable of finding collisions in a hash function to reinforce the integrity of the world’s largest crypto asset by market cap against bad actors in the quantum computing age.
Recognizing this threat, the US Department of Commerce’s National Institute of Standards and Technology (NIST) has also been working on post-quantum cryptography (PQC) or quantum-safe cryptography systems. The agency’s goal is to develop algorithms that could negate the potentially intrusive powers of quantum computers.
Final Thoughts
Aggarwal is yet to provide an update about their concept. In relation to their 2027 prediction, it may or may not happen yet if O’Brien’s insights are taken into the equation.
Despite its advancements, quantum computing could face tremendous opposition, particularly from the key players in the financial sector, before it could take off. This can be likened to the long journey of Bitcoin, stablecoins, and other crypto assets toward acceptance by the public and financial institutions.
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