Quantum Computing's Potential in Finance Remains Uncertain, Despite Widespread Research
Summary:
A collaborative study involving several U.S. laboratories strived to identify focal points for quantum computing research in areas like chemistry and material science. Although quantum computing holds potential for accelerating computations, this was not confirmed in future finance and fintech aspects. Despite anticipations that quantum computers could improve financial predictions, this remained uncertain. The research, led by the Defense Advanced Research Projects Agency (DARPA), also highlighted the growing need to address the threat of quantum attacks, thereby making it a governmental priority. Independent advancements in quantum computing are happening, suggesting continued development in the field.
Several esteemed U.S. laboratories, including the Lincoln laboratory at MIT, NASA, and the Los Alamos National Laboratory, worked in conjunction with a government program to pinpoint key areas of concentration for quantum computing research. The research was spearheaded by the Defense Advanced Research Projects Agency (DARPA), the U.S. government's military research hub. The study aimed to provide a comprehensive snapshot of the existing and potential quantum computing capacities in fields like chemistry and material science. However, the team was unable to figure out whether quantum computing held a distinct edge in relation to future finance and fintech applications.
Although quantum computing is believed to have the potential for a superior edge — termed "quantum advantage" or "quantum supremacy" — over traditional binary computers in various computations, this hasn't been proven in the context of finance. Many researches in the quantum computing sector are keen on developing algorithms and hardware designed to process "non-linear differential equations". There's widespread belief that quantum computers can greatly accelerate the processing of such equations, thus optimising forecasting and simulation systems, including those used in weather and financial predictions.
There's a widespread belief that if quantum computers capable of running complex non-linear differential equations were successfully built and employed, they could predict worldwide market movements with unmatched accuracy in comparison to even the most powerful supercomputers, and in far less time.
However, the aforementioned research by DARPA puts a dampener on the prospect of a quantum computer accurately forecasting the stock, commodities, and cryptocurrency markets. Quantum computing is still nascent, but the imminent threat of quantum attacks — the use of quantum computers to decode modern encryption methods — has placed it at the forefront of international governmental concerns.
DARPA's published documents reveal that the recent research indicates the likelihood of quantum computers delivering advantages in economically beneficial applications like certain chemistry, quantum materials, and materials science applications. However, the documents point out that the study fails to offer clarity on whether there could be any advantage garnered for applications in nonlinear differential equations.
While this revelation is something of a setback to the notion of near-future quantum computers ensuring wealth generation through market predictions, DARPA is not the sole authority in the quantum computing realm. Companies such as Rigetti and Microsoft, the latter having frequently collaborated with DARPA, have made independent quantum computing progress along with the government. Other corporations, namely Google and IBM, have independently advanced the concept of "quantum advantage".
Published At
6/23/2024 7:47:06 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.