assessment that is also accurate,” Woerner says. “This means we can move away from overnight
historical risk assessment to hourly and even real time using live data. It gives us the means to get away from best efforts based on historical data.” Nomura in Japan is one bank actively looking at
this. Specifically it is looking at artificial intelligence technologies to select an optimal mix of stocks to enhance the performance of clients’ investment portfolios. It will also be used to make predictions on future stock prices. The firm’s aim is to test the extent to which quantum computers increase the efficiency and accuracy of calculations. Barclays and JPMorgan Chase, meanwhile, have
both joined IBM’s Q Network for the same reason; to look at how quantum computing could speed up processing massive volumes of data. JPMorgan Chase is specifically looking to find out how quantum computing can be used when it comes to better trading strategies, improving client portfolios, and better-analysing financial risk. It has one quantum algorithm under development which looks specifically at speeding up derivative pricing. This is a good example of how quantum
computing can process and translate data. Derivatives typically need 10,000 simulations to price on a classical, conventional computer, but would need just 100 quantum operations on a quantum device.
A SLOW BURN Encryption is another area set to see changes once quantum computing becomes operational. Again the ability to crunch large amounts of data quickly means that the time taken to crack an encrypted code will reduce. Significant work is being prepared to develop
quantum encryption methods such as quantum key distribution, an ultra-secure communication method that requires a key to decipher a message. “The problem is that current encryption methods
are based on prime numbers and quantums can break this easily. What is needed is a change to a matrix of letters which is much harder for a
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CAMPDENFB.COM ISSUE 75 | 2019
Above: Staff at IBM’s Q lab, in its TJ Watson research facility in New York state, sees quantum computing as a key to unlock artificial
intelligence, among other applications.
quantum to break,” Woerner says. “However, currently quantums are not big enough
or accurate enough to break a binary encryption.” Jurczak says a new standard for ‘quantum safe’
encryption should be adopted within two-to- three years. “It will make the quantum computing threat
much more tangible to the public, as well as ways to protect against it. And spectacular demonstrations of the building blocks of the future quantum internet will be made.” As things stand then quantum computing is very
much in the development stage, offering just the promise of tangible greatness. The challenge is to develop something that is to-date neither powerful enough nor precise enough into something that is useable, reliable, accurate, and fast. “The potential is massive, but in the short-term
the limitations are such that it is hard to say if it has anything other than theoretical application,” Wu says. “This will be a slow burner that is still in the
research stages and, because it is fundamentally restricted by the physics, we need to expect a long wait, unless there is a fundamental breakthrough in the physics.”
“This will be a slow burner that is still in the research stages”
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