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Step Up Politics

The Future is Here: Quantum Computing and Finance - The Perfect Bond

  • Edouard Chosson
  • Mar 3, 2024
  • 2 min read

Updated: Jun 18, 2024

Before we delve into the complex but fascinating domain of quantum computers and their potential involvement in finance, let's start with the basics. Understanding the logic behind quantum physics is crucial.

A bit of history never hurts. In 1980, Richard Feynman, one of the most influential scientists, attempted to advance quantum science by modeling quantum systems on a computer. However, he encountered a significant issue: his computer couldn't handle the calculations required for quantum systems. His solution was ingenious; he proposed building a computer composed of subatomic parts, thus paving the way for quantum computing and bridging the gap between quantum physics and computer science.

While Feynman's story is fascinating, the crux of the matter lies in grasping the logic and principles of this intricate field. The fundamental concept in quantum science is the notion of amplitude. Amplitudes are the opposites to probabilities. They are complex numbers that can range from zero to one or be a linear combination of zeros and ones. Graphically, amplitudes can be envisioned as a wave of probability within a black box, where particles can exist in multiple places simultaneously. As amplitudes differ from probabilities, they adhere to different rules, divorcing quantum physics from classical probability theory.

The concept of amplitude is closely tied to the quantum bit, or qubit, which differs from classical bits that are binary, representing either one or zero. This explains why amplitudes can be combinations of zeros and ones, referring to the non-binary nature of qubits.

Furthermore, as we dive deeper into quantum physics and computing, we discover the concept of superposition, which is central to quantum mechanics. Superposition, as dictated by the Schrödinger equation, implies that subatomic particles can exist in multiple states simultaneously, emphasizing the non-binary nature of qubits. Additionally, entanglement, the phenomenon where two qubits become correlated and behave as a single quantum system, adds another layer of complexity.

Now, after grasping these fundamental concepts, it's crucial to understand the potential applications of quantum computing, particularly in fields like finance. Major players in the quantum industry, such as IBM and Google, have made significant strides, with Google achieving a quantum computer with 70 qubits which is 241 million times more powerful than the one they created in 2019.

So, how does quantum computing intersect with finance? Quantum computing offers speed, power, enabling more accurate market predictions and faster transactions. This could revolutionize trading strategies and algorithms, enhancing productivity and reliability in predicting stock market trends. These are more than supercomputers. They are something else something different that might revolutionize the ways to invest and predict; 

Looking ahead, the future of quantum computing in finance holds immense promise. As algorithms become more sophisticated and quantum computers more powerful, they will likely play a vital role in optimizing financial strategies and decision-making processes, ultimately reshaping the landscape of finance as we know it. Lastly the relationship between quantum physics and finance, fueled by the advancements in quantum computing, is poised to enter a new era of unprecedented efficiency and precision in financial modeling and risk assessment, fundamentally altering the approach to investment and market analysis.


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