Monthly Archives: March 2021

The researchers ran a model for portfolio optimization on Canadian company D-Wave's 2,000-qubit quantum annealing processor.

Consultancy firm KPMG, together with a team of researchers from the Technical University of Denmark (DTU) and a yet-to-be-named European bank, has been piloting the use of quantum computing to determine which stocks to buy and sell for maximum return, an age-old banking operation known as portfolio optimization.

The researchers ran a model for portfolio optimization on Canadian company D-Wave's 2,000-qubit quantum annealing processor, comparing the results to those obtained with classical means. They foundthat the quantum annealer performed better and faster than other methods, while being capable of resolving larger problems although the study also indicated that D-Wave's technology still comes with some issues to do with ease of programming and scalability.

The smart distribution of portfolio assets is a problem that stands at the very heart of banking. Theorized by economist Harry Markowitz as early as 1952, it consists of allocating a fixed budget to a collection of financial assets in a way that will produce as much return as possible over time. In other words, it is an optimization problem: an investor should look to maximize gain and minimize risk for a given financial portfolio.

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As the number of assets in the portfolio multiplies, the difficulty of the calculation exponentially increases, and the problem can quickly become intractable, even to the world's largest supercomputers. Quantum computing, on the other hand, offers the possibility of running multiple calculations at once thanks to a special quantum state that is adopted by quantum bits, or qubits.

Quantum systems, for now, cannot support enough qubits to have a real-world impact. But in principle, large-scale quantum computers could one day solve complex portfolio optimization problems in a matter of minutes which is why the world's largest banks are already putting their research team to work on developing quantum algorithms.

To translate Markowitz's classical model for the portfolio selection problem into a quantum algorithm, the DTU's researchers formulated the equation into a quantum model called a quadratic unconstrained binary optimization (QUBO) problem, which they based on the usual criteria used for the operation such as budget and expected return.

When deciding which quantum hardware to pick to test their model, the team was faced with a number of options: IBM and Google are both working on a superconducting quantum computer, while Honeywell and IonQ are building trapped-ion devices; Xanadu is looking at photonic quantum technologies, and Microsoft is creating a topological quantum system.

D-Wave's quantum annealing processor is yet another approach to quantum computing. Unlike other systems, which are gate-based quantum computers, it is not possible to control the qubits in a quantum annealer; instead, D-Wave's technology consists of manipulating the environment surrounding the system, and letting the device find a "ground state". In this case, the ground state corresponds to the most optimal portfolio selection.

This approach, while limiting the scope of the problems that can be resolved by a quantum annealer, also enable D-Wave to work with many more qubits than other devices. The company's latest devicecounts 5,000 qubits, while IBM's quantum computer, for example, supports less than 100 qubits.

The researchers explained that the maturity of D-Wave's technology prompted them to pick quantum annealing to trial the algorithm; and equipped with the processor, they were able to embed and run the problem for up to 65 assets.

To benchmark the performance of the processor, they also ran the Markowitz equation with classical means, called brute force. With the computational resources at their disposal, brute force could only be used for up to 25 assets, after which the problem became intractable for the method.

Comparing between the two methods, the scientists found that the quality of the results provided by D-Wave's processor was equal to that delivered by brute force proving that quantum annealing can reliably be used to solve the problem. In addition, as the number of assets grew, the quantum processor overtook brute force as the fastest method.

From 15 assets onwards, D-Wave's processor effectively started showing significant speed-up over brute force, as the problem got closer to becoming intractable for the classical computer.

To benchmark the performance of the quantum annealer for more than 25 assets which is beyond the capability of brute force the researchers compared the results obtained with D-Wave's processor to those obtained with a method called simulated annealing. There again, shows the study, the quantum processor provided high-quality results.

Although the experiment suggests that quantum annealing might show a computational advantage over classical devices, therefore, Ulrich Busk Hoff, researcher at DTU, who participated in the research, warns against hasty conclusions.

"For small-sized problems, the D-Wave quantum annealer is indeed competitive, as it offers a speed-up and solutions of high quality," he tells ZDNet. "That said, I believe that the study is premature for making any claims about an actual quantum advantage, and I would refrain from doing that. That would require a more rigorous comparison between D-Wave and classical methods and using the best possible classical computational resources, which was far beyond the scope of the project."

DTU's team also flagged some scalability issues, highlighting that as the portfolio size increased, there was a need to fine-tune the quantum model's parameters in order to prevent a drop in results quality. "As the portfolio size was increased, a degradation in the quality of the solutions found by quantum annealing was indeed observed," says Hoff. "But after optimization, the solutions were still competitive and were more often than not able to beat simulated annealing."

SEE: The EU wants to build its first quantum computer. That plan might not be ambitious enough

In addition, with the quantum industry still largely in its infancy, the researchers pointed to the technical difficulties that still come with using quantum technologies. Implementing quantum models, they explained, requires a new way of thinking; translating classical problems into quantum algorithms is not straightforward, and even D-Wave's fairly accessible software development kit cannot be described yet as "plug-and-play".

The Canadian company's quantum processor nevertheless shows a lot of promise for solving problems such as portfolio optimization. Although the researchers shared doubts that quantum annealing would have as much of an impact as large-scale gate-based quantum computers, they pledged to continue to explore the capabilities of the technology in other fields.

"I think it's fair to say that D-Wave is a competitive candidate for solving this type of problem and it is certainly worthwhile further investigation," says Hoff.

KPMG, DTU's researchers and large banks are far from alone in experimenting with D-Wave's technology for near-term applications of quantum computing. For example, researchers from pharmaceutical company GlaxoSmithKline (GSK) recently trialed the use of different quantum methods to sequence gene expression, and found that quantum annealingcould already compete against classical computersto start addressing life-sized problems.

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Are quantum computers good at picking stocks? This project tried to find out - ZDNet

The System Model H1, a ten-qubit quantum computer, has reached a quantum volume of 512.

Honeywell's quantum scientists have quadrupled the capabilities of the company's quantum computer, with the device achieving record levels of performance less than a year after the first generation of the system was released.

The System Model H1, a ten-qubit quantum computer, effectively reached a quantum volume of 512 four times as much as was attained in the previous tweak of the system, which saw the H1 reach a quantum volume of 128.

Released commercially last June (at the time as the System Model H0), the H1 makes use of trapped ions, unlike IBM and Google's devices, which are built with superconducting qubits. Honeywell's new record is eight times as much as was achieved with the System Model H0, which launched with a quantum volume of 64.

Quantum volume is a concept that IBM developed in 2017 as a way of measuring various aspects of a quantum computer's performance; in simple terms, the higher the quantum volume, the higher the potential for resolving real-world problems across industry and research. Designed to be independent of the architecture of any given quantum computer, quantum volume can measure any system that runs quantum circuits.

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For example, one measurement that is indicative of a quantum computer's capabilities is qubit fidelity, which is critical to understanding how well a device can implement quantum code. According to Honeywell, the average single-qubit gate fidelity in the latest version of the H1 was 99.991%.

The final number that determines quantum volume is an aggregate of many other measurements and tests of a single quantum system's operations: they include the number of physical qubits in the quantum computer, but also the device's error rate, and connectivity, which reflects the extent to which qubits can be fully connected to each other within the device.

This is why it is possible for a quantum system to reach a high quantum volume, even with few qubits. Despite having only ten qubits, for instance, Honeywell's System Model H1 performs well when it comes to error rates and connectivity, which has earned the device a top spot for its overall capabilities. In comparison,last year IBM's 27-qubit client-deployed system achieved a quantum volume of 64.

The new milestone, therefore, hasprompted Honeywell's president of quantum solutions Tony Uttley to describethe System Model H1 as "the highest performing quantum computing system in the world."

Honeywell has made no secret of its strategy, which consists of focusing on qubit fidelity and connectedness, before attempting to scale up the number of qubits. "When you hear about fidelity and error, that's about the quality of the quantum operation," Uttley told ZDNet. "It's about knowing how often you get the right answer when you run these quantum algorithms."

"We have taken one approach that is very unique when it comes to how to get the most out of these near-term systems," he continued. "Nobody is talking about millions of qubits right now we're talking about tens of qubits. To get the most out of these tens of qubits, you have to have super-high fidelity, fully-connected and highly-controlled systems. That's our approach."

SEE: The EU wants to build its first quantum computer. That plan might not be ambitious enough

Making these highly reliable systems available to Honeywell's customers now enables businesses to test and trial with small-scale applications while waiting for the company to design and build new generations of more capable quantum computers, according to Uttley.

Honeywell recently introduced the first subscription-based plan for the usage of the H1,which grants paying customers a monthly access to the machine.

With only ten qubits, there is little that the device can achieve on top of proofs of concepts, designed to be implemented in full scale once a larger computer is available; but high-profile customers are nevertheless flocking to Honeywell's services.

J.P. Morgan Chase, for example, is investigating how the company's quantum computermight improve operations in banking; and BMW ispiloting the use of Honeywell's hardwareto optimize supply chains for car manufacturing.

Original post:

Quantum computing: Honeywell just quadrupled the power of its computer - ZDNet

Five worthy reads is a regular column on five noteworthy items we discovered while researching trending and timeless topics. In this weeks edition, lets explore how quantum computing works and how it impacts cybersecurity.

Quantum physics describes the behavior of atoms, and fundamental particles like electrons and photons. A quantum computer operates by controlling the behavior of these particles. Bits are the smallest units of information in traditional computers. Quantum computers use qubits, which can also be set simultaneously to one of two values, providing superior computing power. To visualize the difference, think of flipping a coin versus spinning it. This unpredictability is called superposition, which can be measured by electron motion and direction. Unlike bits, qubits are manipulated using quantum mechanics for data transfers, and not for data storage.

The quantum entanglement is what makes it really exciting. A close connection of qubits reacts to a change in the partner qubits state instantaneously, no matter how far apart they are. The transmission of information from one location to another without physically transmitting it almost imitates teleportation. When you change a molecular property of one particle, it can impact the other across space and time and that creates the channel for teleportation. Which Einstein once called this behavior spukhafte Fernwirkung which translates as Spooky action at a distance.

The fascinating thing about quantum tech is its uncertainty. This could be helpful for creating private keys to encrypt messages, which makes it impossible for hackers to copy the keys perfectly. However, a quantum computer can introduce other concerns. It could be used in codebreaking that potentially compromises IT security.

Here are five interesting reads on quantum computing and its impact on cybersecurity:

Quantum Computing May Be Closer Than You Think

Classical computers will not be replaced by quantum computers. Quantum computers are for solving problems which traditional computers can not. They can help performa large number of algorithms, calculations, and even run simulations. For example, vaccine development can be achieved in hours or days where it might take several years with classical computers. Quantum technology is capable of opening up a whole new world of possibilities.

Quantum Computing and the evolving cybersecurity threat

Many underlying foundational technologies that rely on public key encryption are potentially at risk with the advent of quantum technology.Quantum computers are a double-edged sword that can break our current encryption algorithms,but also open the door for more advanced systems. It can help various industries,including transportation in optimizing routes, finance industries in performing risk analysis, genetic engineering, chemical manufacturing and drug development, and weather forecasting.

Quantum computers could crack Bitcoin by 2022

Quantum computers can be popular in terms of codebreaking, its capabilities can potentially introduce IT security issues. Encrypting doesnt guarantee protection, its only a way to make the data harder to access. With a private key, one can easily create its corresponding public key, but not vice-versa. It could take millions of years for classical computers to find a match, but a quantum computer can easily calculate the secret private key in minutes. This means that cryptocurrency, like Bitcoins that depend on blockchain technology, are at greater risk of quantum attacks.

A sufficiently powered quantum computer can make modern-day encryption look like a side quest in the hackers main gameplay.Developing quantum-resistant cryptography to thwart quantum hacking is the need of the hour.

The quantum computing cybersecurity threat cannot be underestimated

Quantum computing opens up incredible advances in computing, such as the ability to factor large prime numbers at incredible speeds.Unfortunately, the same prime factor numbering underlies the security systems we use to secure data in transit and in other information security arenas.

Building a quantum computer and achieving quantum supremacy is not childs play.It involves huge investments, and carefully shielded, isolated environments operating at supercold temperatures. The quantum race is real, and many countries have been investing heavily in quantum computing.We should also be mindful about the harvest now, decrypt later attacks where an adversary can steal high-value encrypted data now and store to decrypt it later, once they gain access to a powerful quantum computer.

Harvesting Attacks & the Quantum Revolution

The quantum revolution has already begun. Organizations should start thinking about best practices like crypto-agility, which is the process that enables an organization to replace traditional algorithms without having an impact on any other process in the organization.They should consider quantum-resistant cryptography, as the existing encryption protocols will become obsolete in a few years. This may not seem like an immediate risk, but given the challenges and potential need for mitigation surrounding new protocols,planning ahead is wise. It may take a few more years for the technology to be commercially available, but we should also remember that a few years back quantum computing seemed like a theoretical concept.

The post Five worthy reads: Understanding quantum computing and its impact on cybersecurity appeared first on ManageEngine Blog.

*** This is a Security Bloggers Network syndicated blog from ManageEngine Blog authored by Sree Ram. Read the original post at: https://blogs.manageengine.com/corporate/general/2021/03/12/five-worthy-reads-understanding-quantum-computing-and-its-impact-on-cybersecurity.html

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Five worthy reads: Understanding quantum computing and its impact on cybersecurity - Security Boulevard

IonQ, a quantum computing startup born in College Park, announced Monday that it would likely soon become the first publicly traded company to specialize in commercialized quantum computing.

The company plans to file paperwork with the Securities Exchange Commission in the next week, which will allow it to go public on the New York Stock Exchange through an acquisition deal that would set the valuation of the combined entity to nearly $2 billion.

The ability to become a public company gives us access to a huge capital base, and that will allow us to spend more time building our system, deploying them for useful application, said Chris Monroe, IonQs founder and a physics professor at the University of Maryland. We can start to do our own research and development We can do more risky things.

Monroe and co-founder Junsang Kim formed IonQ with the goal of taking quantum computing into the market. They initially received $2 million in seed funding from New Enterprise Associates, giving them a license to lab technology from the University of Maryland and Duke University. From there, they were able to raise tens of millions of dollars in funding from companies like Samsung and Mubadala, and partnered with Amazon Web Services and Microsoft.

[Gov. Hogan names College Park quantum computing company one of top state start-ups]

The company going public was made possible by a planned merger with a blank-check firm, dMY Technology Group Inc. III.

If it goes through, the merger will result in over $650 million in gross proceeds, including $350 million from private investors, according to a press release from IonQ. Combined with the $84 million the company has raised in venture capital funding, the deal would place IonQs total earnings at about $734 million.

The transition to quantum computing is unprecedented, Monroe said, and it will allow people to solve problems that a regular computer often cant.

Some problems like optimizing a fleet of trucks or discovering medicines have too many variables to solve with regular computing. But at the quantum level, more information can be handled, Monroe said, making it radically different from todays computing.

University President Darryll Pines, formerly the dean of the engineering school, explained that classical computing uses a stream of electrical pulses called bits, which represent 1s and 0s, to store information. However, on the quantum scale, subatomic particles known as qubits are used to store information, greatly increasing the speed of computing.

IonQs approach to researching quantum computing has been rooted in university-led research. Quantum physics has strange rules that arent always accepted in the engineering world, Monroe said, so many of these laws have become the domain of research at universities and national laboratories.

And this university especially, with its proximity to Washington, D.C., has one of the biggest communities of quantum scientists, Monroe said.

We have students and postdocs and all kinds of researchers on Marylands campus studying the field, and at IonQ, weve hired many of them, Monroe said. And thats a huge advantage for us.

As a company with about 60 employees, some of whom attended this university, IonQ has become a pioneer in quantum computing. In October, Peter Chapman, IonQs CEO and president, announced the companys newest 32-qubit computer, the most powerful quantum computer on the market.

And in November, Maryland Gov. Larry Hogan named IonQ one of the states top 20 startup companies in the state.

[Women of color in UMD community are making it as entrepreneurs despite challenges]

The biggest advantage for IonQ has been its technology, Monroe said. Companies like IBM, Google or Microsoft use silicon to build their computers but IonQ uses individual atoms, which, unlike silicon, float over a chip in a vacuum chamber.

That technology has been perfected at this university, Monroe said, and IonQ has a concrete plan over the next five years to manufacture quantum computer modules and wire them together.

By 2030, 20 percent of global organizations whether in the public or private sector are expected to budget for quantum-computing projects, according to Gartner Inc., a global research and advisory firm. That number is up from less than 1 percent in 2018, according to Gartner.

Niccolo de Masi, CEO of dMY, said in IonQs press release that he expects the quantum computing industry to grow immensely in the next ten years, with a market opportunity of approximately $65 billion by 2030.

Pines expressed his excitement at seeing a university startup make strides in computing.

Were happy for building the ecosystem from science, to translation, to startup, to possibly developing a product and adding value to society and growing jobs in the state of Maryland, Pines said.

More here:

After merger, College Park startup IonQ plans to go public with $2 billion valuation - The Diamondback

Burnaby, B.C.-based D-Wave Systems is getting $40 million from the federal government to help advance its efforts in the development of quantum computing.

The funding comes from Ottawas Strategic Innovation Fund to support a $120 million project to advance D-Waves hardware and software.

Quantum will help us quickly solve problems that would have otherwise taken decades, said Franois-Philippe Champagne, Minister of Innovation, Science and Industry, told reporters during a virtual press briefing for the announcement.

In a separate release, he added that the funding will will help place Canada at the forefront of quantum technology development, and will create new jobs and opportunities to help Canadians and advance the economy.

A brief history (so far) of quantum computing [PART 1]

A brief history (so far) of quantum computing [PART 3]

A brief history (so far) of quantum computing [PART 2]

D-Wave is the first company to offer a commercially available quantum computer but is still only in the early stages of building a sustainable business after 20 years of development and more than USD $300 million in funds raised.

D-Wave promoted Silicon Valley veteran executive Alan Baratz to chief executive officer last year, replacing Vern Brownell. The company also experienced other changes at the top of the corporate ladder and has parted ways with long-time board members.

Jim Love, Chief Content Officer, IT World Canada

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Quantum computing company D-Wave Systems secures $40M in government funding - IT World Canada

A department overseen by European Union research commissioner Mariya Gabriel wants to safeguard strategic research by barring non-EU researchers.

By Nicholas WallaceMar. 11, 2021 , 4:25 PM

In a sign of growing national tensions over the control of strategic research, the European Commission is trying to block countries outside the European Union from participating in quantum computing and space projects under Horizon Europe, its new research funding program.

The proposed calls, which must still be approved by delegates from the 27 EU member states in the coming weeks, would shut out researchers in countries accustomed to full access to European research programs, including Switzerland, the United Kingdom, and Israel. European Economic Area (EEA) countries Norway, Lichtenstein, and Iceland would be barred from space research calls while remaining eligible for quantum computing projects.

Research advocates see the proposed restrictions as self-defeating for all parties, including the European Union. It would be a classic lose-lose, with researchers in all countries having to work harder, and spend more, to make progress in these fields, says Vivienne Stern, director of UK Universities International. The unexpected news has upset some leaders of existing collaborations and left them scrambling to find out whether they will need to exclude partnersor even drop out themselvesif they want their projects to be eligible for further funding. It is really a pity because we have a tight and fruitful relationship with our partners in the U.K., says Sandro Mengali, director of the Italian research nonprofit Consorzio C.R.E.O. and coordinator of an EU-funded project developing heat shields for spacecraft.

In 2018, when the European Commission first announced plans for the 85 billion, 7-year Horizon Europe program, it said it would beopen to the world. Switzerland, Israel, the EEA nations, and other countries have long paid toassociate with EU funding programs like Horizon Europegiving their researchers the right to apply for grants, just like those in EU member states. After leaving the European Union,the United Kingdom struck a dealin December 2020 to join Horizon Europe, which put out its first grant calls last month through the European Research Council.

But more recently,strategic autonomy andtechnological sovereignty have become watchwords among policymakers in Brussels, who argue the European Union should domestically produce components in key technologies, such as quantum computers and space technology. Those views influenced the Commissions research policy department, overseen by EU research commissioner Mariya Gabriel, which drafted the calls and their eligibility rules,first revealed by Science|Business. The draft says the restrictions are necessary tosafeguard the Unions strategic assets, interests, autonomy, or security.

Its a bit of a contradiction, says a Swiss government official who asked to remain anonymous because of the sensitivity of forthcoming discussions.You want to open the program to the world and work with the best. But the core group of associated countries with whom youre used to working, suddenly you exclude them and force them to work with the competitors. The official says the Commission gave no warnings the proposal was coming but believes the combination of Brexit and the COVID-19 crisis, in which Europe has struggled to secure access to vaccines, masks, and other equipment, may have further spurred Europe to guard its technologies. Negotiations on Swiss membership in Horizon Europe have not begun, but the country intends to join.

The restrictions affect 170 million in funding that could be available in the next few months. The affected areas include quantum computing, quantum communications, satellite communications, space transport, launchers, andspace technologies for European non-dependence and competitiveness. Projects relating to the Copernicus Earth-observation system and the Galileo satellite navigation programs would remain largely open to associated countries.

Shutting out the associated countries would be alost opportunity and could slow progress in quantum computing, says Lieven Vandersypen, a quantum nanoscientist at the Delft University of Technology.To me, it doesnt make sense. Vandersypen contributes to an EU-funded project that is investigating how to create the basic bits of a quantum computer from cheap and readily available silicon. The project includes U.K. and Swiss researchers at University College London and the University of Basel.They are in there for a good reason, Vandersypen says.They bring in really valuable expertise. With a few years left on the grant, the project isn't in any immediate danger. But the exclusions are bad for long-term planning, Vandersypen says.

Non-EU researchers working on a 150 million European quantum flagship initiative set up in 2018 are also upset by the sudden reversal and wonder about their future status. We discuss with our partners in Europe, they ask us, Can you join?And we dont knowthats probably the worst thing, says Hugo Zbinden, a quantum physicist at the University of Geneva and coordinator of one of these flagship projects, QRANGE, which is investigating how a quantum random number generator can be used to improve encryption.

The restrictions are not yet set in stone; national delegates could reject the draft calls and ask the Commission to open them up. But member states accepted the legal basis for the restrictions last year, when they agreed to the Horizon Europe legislation.Of course, you hope that we will be in, Zbinden says. For the time being, we are waiting for some news.

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Europe moves to exclude neighbors from its quantum and space research - Science Magazine