News about breakthroughs on quantum mechanics is streaming into the media at an increasingly rapid rate. Recent research indicates that we could harness, in the not too distant future, the power of quantum mechanics to achieve instantaneous computing. Already, devices can store and manipulate quantum bits of information and emit quantum signals.
The awesome power of quantum mechanics and the Internet of Things promise mind-boggling opportunities to create new businesses and a new economy. But if we continue using fiat currency through an intermediary banking system that is cumbersome and obsolete, to what extent will businesses be able to take advantage of quantum computing?
At first glance, the outlook seems bleak. However, we are fortunate because Bitcoin and its blockchain technology are here to help develop the new economy that quantum computing will bring.
Quantum Computers Are Coming
Quantum mechanics focuses on the science of the minuscule. It is usually defined as the body of scientific principles that explains the behavior of matter and its interactions with energy on the scale of atoms and subatomic particles. Strange things happen in the subatomic universe. Let’s examine, at a very basic level, some of these mesmerizing phenomena.
Wave particle duality: “Matter and light exhibit the behaviors of both waves and particles.”
Tunneling: “Quantum Tunneling is an evanescent wave coupling effect that occurs in quantum mechanics. The correct wavelength combined with the proper tunneling barrier makes it possible to pass signals faster than light, backwards in time.”
Entanglement: “Entangled particles are connected in a way that transcends space and time. Measuring some property of one particle seems to instantaneously ‘fix’ the future measurement outcome for the other. This happens even if they were too far apart for any known signals (those that travel at light-speed or less) to have been exchanged during the measurements,” says Dr. Andrew Friedman.
These concepts have dramatic implications for developing new technologies. According to Princeton University, laser devices and transistors are already operating on quantum mechanical principles. They still operate on classical signals and produce conventional outputs. But now devices have been developed that can store and manipulate quantum bits, which enable the construction of “quantum computers that can solve certain seemingly intractable computational problems, quantum cryptography systems that allow provably secure communication, and quantum sensors that enable measurement sensitivity beyond what is classically possible.”
Prestigious universities and big corporations are feverishly conducting research to exploit this magnificent power.
In May, at the École Polytechnique Fédérale de Lausanne, scientists took the first photograph demonstrating that light can behave as both particle and light.
In December, Google announced that its AI Quantum team has made progress in understanding the physics governing quantum annealers. This achievement encourages the AI Quantum team “to turn quantum enhanced optimization into a practical technology.”
Recently, Australian engineers have shown that quantum computer code can be written and manipulated in a silicon microchip, as reported by The University of New South Wales, Australia. The report adds: “The quantum code written at UNSW is built upon a class of phenomena called quantum entanglement, which allows for seemingly counterintuitive phenomena such as the measurement of one particle instantly affecting another – even if they are at opposite ends of the universe.”
Financial institutions such as Goldman Sachs Group Inc., Royal Bank of Scotland Group Plc, CME Group Inc., and Guggenheim Partners are already studying the possible business applications of quantum computing, reports Bloomberg, adding:
“Wall Street is turning its attention to quantum computers, an emerging technology that aims to exploit the properties of subatomic particles to make extremely complex calculations at unprecedented speeds.”
Quantum Computing & Bitcoin
Quantum computing will allow us to perform financial transactions almost instantaneously. However, for businesses, this unprecedented computing speed will be of little use in an economy still based on a three-thousand-year-old monetary system with fiat currency, controlled by an equally antiquated banking system.
Fiat currencies are inefficient, slow, prone to inflation, and easily manipulated by the controlling powers, such as banks, governments, and powerful financial entities. Being centralized, fiat currencies can even be used as a weapon in “currency wars.” Fiat currencies are government-centric. Each government has its unique tax code and complex legal frameworks. As a result, the present fiat monetary system is unfit to drive an efficient, nimble global economy.
For instance, using Bitcoin and its blockchain, we already have the capacity to perform borderless financial transactions very quickly. Payments and remittance with bitcoins can be executed almost instantaneously. But, the speed of these transactions slows down at the ‘last mile,’ when bitcoins are exchanged into fiat currency.
So, to enjoy the immense benefits that quantum computing promises, banks, businesses, and the whole society will have to undergo profound paradigms shifts and re-engineer all of the business processes. By using quantum computing, the Internet of Things, and Bitcoin and its blockchain as the enablers of the reengineering effort, we may be able to obtain an unimaginable new economy.
Indeed, to truly benefit society, the new economy will have to be based on an international, secure, and decentralized digital currency, such as Bitcoin, which permits the performance of transparent, cashless, fast, frictionless, and efficient financial transactions.
What are your thoughts on how the business world with change with the advent of quantum computers and Bitcoin? Let us know in the comments below!
Images courtesy of Pixabay