Quantum computers: will they revolutionize finance and cyber security?

Quantum computers: will they revolutionize finance and cyber security?

Quantum computers are on the verge of a potential breakthrough that has the potential to fundamentally change numerous industries. Loud IT financial magazine, industrial companies are identifying specific computing problems that quantum computers can solve in minutes, whereas modern supercomputers would take thousands of years. Areas of application range from materials research and medicine to logistics and the world of finance. The first applications are expected to be ready for market in around two to three years.

The secret of quantum computers lies in their quantum mechanical phenomena such as superposition, entanglement and interference. Qubits, the small building blocks of quantum computers, exist in superposition states, meaning they can take on multiple values ​​at the same time. This capability allows systems with 56 qubits to address over 70 quadrillion states. The systems are currently able to calculate with around 100 qubits, although the lifespan of the quantum states is limited.

Areas of application and challenges

Especially in the financial services industry, institutions such as JPMorgan, Goldman Sachs and IBM are driving the development of practical applications. These include, among other things, Monte Carlo simulations for portfolio optimization or real-time fraud detection with quantum neural networks. However, quantum computing also poses significant risks to data security. In particular, the RSA and ECC encryptions used in modern cryptographic methods are at risk. An example illustrates this threat: a prime factorization of a 2,048-bit RSA cipher would take 100,000 years with conventional computers, but less than two minutes with a quantum computer at 80 stable qubits, as shown on EY is reported.

Possible solutions to secure against these threats could include certified random numbers for quantum safe keys, post-quantum cryptography and quantum key exchange (QKD). Countries like China and Korea have already set up QKD networks, while Germany has now caught up in the quantum race. eleQtron is planning to develop the first quantum computer demonstrator in Germany in 2024.

Technology and future outlook

The technology selection for quantum computers remains exciting; Different approaches such as superconducting qubits, neutral atoms or ion qubits are under discussion. For example, eleQtron relies on ion traps with high-frequency controlled qubit control, called “MAGIC technology”. Leading hardware manufacturers plan to develop systems with 1,000 error-corrected qubits by 2028 to 2032, while experts even predict the construction of quantum systems with 1 million qubits by the end of the decade.

The increasing computing power of quantum computers also increases the risk of hacker attacks. However, since quantum computers are not accessible to private individuals or small hacker groups due to their high cost and physical requirements, large technology companies such as IBM, Google and Microsoft offer cloud services, which, however, also represent a potential target for cybercriminals. An exponentially growing risk that endangers particularly sensitive data from governments, public institutions and longer research cycles.

Full disruption from quantum computing is expected around 2030, with proactive collaboration between financial institutions and providers potentially accelerating the transition to the quantum age. The development of quantum computers, driven by universities and technology companies, represents not only a technological revolution, but also a challenge for security in the digital age.