Two fields presented to us Juan Elorduy, a physicist with extensive experience in banking and multiple countries in the American and European continents. Professor at the eL Business School of Strategy and Innovation in Financial Services and member of the Digit Institute Academic Committee.

In the professor's words, some authors comment that quantum computing is more powerful than traditional computing, but this is not its most important feature. The most important characteristic of quantum computing is that it is DIFFERENT.

Why is quantum computing different?

Quantum computing is radically different from traditional computing because it is not built on bits (electrical signals that represent ones and zeros) but on quantum bits (qbits).

In 1986, physicist Richard Feynman wrote the article”Quantum Mechanical Computers” indicating the possibility of developing a different computation using the spin state of subatomic particles (Up, Down) instead of bits (1, 0). Here someone might think that it's easy to establish a parallel between the two by making 1=Up and 0=Down. What happens is that the spin of particles presents three quantum phenomena that do not exist in the binary world of 1.0. These phenomena are:

-La superposition

A spin can occur up or down at the same time, with different odds.

-The entanglement

If two qbits are intertwined, it means that if one is Up, the other is Down and vice versa.

-La jamming

If you have two qbits, one in the +Up state and the other in the -Up state, when found, destructive interference occurs and both disappear.

The qbits together with these three properties are the foundations of quantum computing that make it radically different from traditional computing. As their foundations are different, their potential applications are also different. Currently, a small number of practical applications are available.

Quantum computing applications?

‍

1. New materials, drugs and chemical process optimization

First, since the quantum bit represents the state of a subatomic particle, it is reasonable to think that this type of computing will allow us to simulate and better understand the behavior of atoms and molecules. This may suggest that their interest is only for physicists. Well, no. Knowing better the behavior of atoms and molecules means being able to develop new materials (atomic/molecular structures), the design of new drugs (molecules) and the optimization of chemical processes (reactions between molecules and atoms). Therefore, the development of quantum computing may affect companies related to these activities.

‍

2. Cybersecurity

In cybersecurity, quantum computing poses a threat to governments, banks and the security of internet communications. Why?

Because in 1994 the mathematician Peter Shor developed a Quantum algorithm which allows decrypting the RSA cryptography widely used by governments, banks, companies and in internet communications. At present, quantum computers with a sufficient number of qbits to apply it in practice are not yet available, but countries like the United States are already taking measures to make their communication systems resistant to quantum computing.

Banks and many companies will gradually follow this same path.

‍

3. Financial Services

How is the price of a stock going to behave tomorrow? There is a probability x of going up and another probability (1-x) of going down. Taking into account what was mentioned above about the superposition of states, the behavior of the share price can be represented as a superposition of the Up and Down states. There are quantum algorithms for optimizing investment portfolios. The Spanish company Multiverse offers advice to financial institutions to develop this type of quantum algorithms.

‍

‍4. And what applications will quantum computing bring us in the future?

The truth is, even experts in quantum computing don't know for sure.

Probably, the future will bring us applications that we are currently unable to imagine, as has happened with other previous disruptive technologies such as electricity, traditional computing, internet,...

‍