Quantum computing in banking and economics: a threat or an opportunity?
A threat when quantum computing
Quantum computing as an opportunity
The challenge of applying quantum computing
Quantum computer is a completely new type of device or hardware. These computers work according to the principles of quantum physics. Quantum computers can process huge amounts of data much faster than conventional computers. However, the technology needed to make this computer is still being researched.
A threat when quantum computing
All types of financial institutions, such as banks or asset management, deal with highly sensitive customer data as well as transaction and contract information. This information needs to be stored for years to decades. That is, this information should be kept safe. The currently used encryption algorithms ensure data security by relying on complex mathematical problems. Conventional computers cannot solve these algorithms.
One of the keynote speakers at the "Inside Quantum Technology 2021" conference was Dan Garrison, who instructed the multinational IT company Accenture to create a quantum computing program. He said that if all the conventional computers worked together to break an encryption code, it would take approximately 14 billion years. However, it has been theoretically proven that a quantum computer is capable of breaking several types of encryption code in a matter of minutes or seconds. Several such algorithms have already been developed.
However, Quantum Hardware has not yet reached the stage of working with such algorithms. Nevertheless, in the future, whenever large-scale error-tolerant quantum computers can be easily used, there is a risk of leaking all data and personal information related to business and transactions. Some scientists predict that quantum computers will become usable in the next decade. It is even thought that some dishonest cycles are now gathering encrypted data for later decryption. So that they can use that data as soon as the Quantum device arrives.
Therefore, it will be easier to secure data in the future if we start using quantum-resistant algorithms now.
Quantum computing as an opportunity
Mathematical calculations have to be done to manage many economic activities of the present time. And as money, shares or any other value or number increases, it becomes more complicated. As a result, a lot of resources are needed to maintain the whole thing. Even so, owning one is still beyond the reach of the average person. Because, with the current technology and method, it is not possible to solve these complex problems. And with the help of quantum technology these complex mathematical problems can be solved.
One of the most promising functions of quantum computing in economics is to accurately predict the market through simulations. This will allow you to estimate how the price of a product may affect other costs.
According to experts, Quantum Computer will be able to predict what the future market will be like, how to price different products, or how to assess the risks and uncertainties of different financial measures. Quantum computers will be able to predict these complex issues using machine learning and algorithms that can detect patterns in large amounts of data.
Quantum computing can also help significantly in various economic initiatives such as trading and portfolio optimization. Currently, due to market volatility, customer preferences, limitations of conventional computers and some limitations in transaction costs, traders may not be able to think of the most appropriate steps in advance. However, scientists have already proven that quantum technology can solve these complex problems.
The challenge of applying quantum computing
The way to the future of Quantum Computing in the economy and banking industry is not challenging. Now is the time to decide which issues are suitable for dealing with Quantum computers and are not suitable. As well as increasing the availability of quantum computers and the availability of software, many more challenges to increase the interest of this technology outside of mathematicians and researchers, have to deal with the future.
According to experts, a long and complex process to take quantum-based solutions methods. And it does not depend on the development of the problem, data transfer and infrastructure development. Rather, it is possible to start the use of Quantum Computing Technology successfully in the economy and banking industry through the other customers including including in this process.