QUbits Drive The CHANGE
How Quantum Computing Can Disrupt the Economy
Quantum computing has the potential to revolutionize society and the economy. Based on exponentially increased computing power, problems can be solved that are unsolvable or time-consuming for classical computers. Damir Bogdan explains in which areas this is already happening and how entrepreneurs or executives can use future potential.
As CEO of Quantum Basel, the business informatics specialist and member of several supervisory boards heads the Swiss Competence Center for Quantum Computing and Artificial Intelligence (AI). He is convinced that this technology will lead to upheavals across industries because it has an overarching pattern in terms of industry agnosticism. “Wherever optimization, simulation or machine learning come into play, quantum computing has the potential to accelerate and improve processes,” says Bogdan. “Speed is not the main advantage. The decisive factor is that quantum computers can filter out the better options from many more possibilities and variants better than classical computers.”
Strength with a wealth of variants
As an example of application, he cites HVAC systems, i.e. heating, ventilation and air conditioning technology. In an industrial building, hundreds of kilometers of pipes of various types and varieties are often laid. For the planning of the building, a network simulation can be carried out by way of quantum computers. “With the help of quantum computing, it only takes one employee and one day. In the past, there were several employees over several weeks required,” according to Bogdan. In addition, material can be significantly saved, which reduces construction costs. “And simulation using quantum computers also brings significant savings in the operation of the building. Because unlike the cable network in the past, it no longer looks like a pot of spaghetti, but much more orderly – which also means that there are far fewer crossings with hoses or pipes that previously disturbed the airflow and therefore consumed more energy.” The strength of quantum computers compared to classical computers in simulation lies above all in the ability to take into account a wide variety of variants. “The more constraints there are, the more suitable quantum computing is,” emphasizes Bogdan, who lectures on this topic around the world.
Potential for fault tolerance
With regard to machine learning, quantum computers could achieve similarly good results as classical computers – especially if the data sets are very different and the data quality is not equally good everywhere. However, quantum computers are not yet universally applicable because they would have to be fault-tolerant. The system must continue to function properly even in the event of errors or malfunctions. Because quantum information is fragile and qubits are susceptible to noise and decoherence, this is not yet possible. “Fault tolerance is the holy grail. Algorithms can be used to compensate for the deficits of quantum computers, and they are already good enough with what they can do today,” says Bogdan.
Energy efficiency
With regard to the considerable power requirements of artificial intelligence applications, Bogdan notes that quantum computing is comparatively efficient. “Our quantum computer, for example, runs at 17 KWh per hour – that’s less than my electric car and significantly less than classic supercomputers with three to five megawatts per hour,” explains Bogdan. With proven concepts such as the purchase of electricity from hydropower and the use of waste heat for apartments, as practiced at QuantumBasel, an efficient energy cycle can also be established.
Managing Y2Q Risk
A major topic of discussion is whether and when quantum computers will be able to crack the encryption algorithms currently used by the Internet. Background: today, two methods, RSA and AES, are used to encrypt websites or data transfers. For RSA encryption, two prime numbers are multiplied. The product is made available in the public key section; but the factors themselves remain secret. So far, there is no computer that is powerful enough to do the backward calculation.
“According to studies, there is a 3% probability that quantum computers will be able to crack existing encryption algorithms by 2030. But no one knows whether that will happen, whether it will come sooner or later,” Bogdan emphasizes. In August 2024, the U.S. National Institute of Standards and Technology (NIST) published four standards that can be used to use quantum-secure protocols for encryption – one standard for general encryption and three for digital signatures. These so-called post-quantum cryptography (PQK) standards are based on complex mathematics of polynomial associations and hash functions and are particularly difficult to crack. PQK are intended to offer high protection against powerful quantum computers and AI-based attacks.
“Against this background, entrepreneurs and managers should now have the data in their company identified, decrypted and encrypted according to the new NIST standards that will still be relevant in a few years. In addition, a process should be defined for how all newly added data is also protected by the NIST standards,” says Bogdan, who also contributes his know-how as a member of the Board of Directors. This approach can significantly reduce the risk that Y2Q will make all company data and all communication transparent by quantum computers in the future.
