{"id":97527,"date":"2016-10-31T10:28:32","date_gmt":"2016-10-31T14:28:32","guid":{"rendered":"http:\/\/countingpips.com\/?p=97527"},"modified":"2016-10-31T06:29:05","modified_gmt":"2016-10-31T10:29:05","slug":"can-quantum-computing-produce-a-hack-proof-network","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/can-quantum-computing-produce-a-hack-proof-network\/","title":{"rendered":"Can Quantum Computing Produce a Hack-Proof Network?"},"content":{"rendered":"
October 31, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Can<\/p>\n

Eventually, the world\u2019s most famous physicist became one of quantum theory\u2019s biggest critics. But some of the things Einstein talked about will probably be critical parts of the solution to network security.<\/strong><\/i><\/p>\n

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On August 16, 2016, the Chinese Academy of Sciences (CAS) launched the world\u2019s first quantum communications satellite.<\/p>\n

It was a huge step for the Chinese. And it may have enormous implications for all of us.<\/p>\n

The $100 million Quantum Experiments at Space Scale (QUESS) project is a joint effort between the Chinese Academy of Sciences and the Austrian Academy of Sciences \u201cdesigned to establish \u2018hack-proof\u2019 quantum communications by transmitting uncrackable keys from space to the ground.\u201d<\/p>\n

China is close to another major quantum communication milestone that brings the foggy dream of a totally secure internet into clearer focus.<\/p>

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As IEEE Spectrum <\/em>reported last week, researchers from the University of Science and Technology of China are on course to complete a 2,000-kilometer-long fiber-optic link that will enable the transmission of quantum keys for secure communication between Beijing and Shanghai by the end of 2016.<\/p>\n

If it works, it\u2019ll establish a quantum network of four cities. Combined with the quantum satellite\u2019s potential, we\u2019re talking about a secure quantum network.<\/p>\n

China is close to another major quantum communication milestone that brings the foggy dream of a totally secure internet into clearer focus.<\/em><\/strong><\/p>\n

So what is quantum computing?<\/p>\n

Let\u2019s frame it by talking about two major objectives quantum computing helps achieve: greater precision via increased computing power and greater security.<\/p>\n

As defined by the University of Waterloo Institute for Quantum Computing, \u201cQuantum computing is essentially harnessing and exploiting the amazing laws of quantum mechanics to process information.\u201d<\/p>\n

The most basic element of the chips that are the \u201cbrains\u201d of the desktops and laptops we\u2019re using today is the \u201cbit,\u201d which is based on a binary encoding system \u2014 ones and zeroes.<\/p>\n

Quantum computing is based on quantum bits \u2014 or qubits \u2014 which allow those binary ones and zeroes to be encoded into different quantum states.<\/p>\n

The elegance of quantum computing rests on \u201csuperposition\u201d and \u201centanglement\u201d \u2014 phenomena specific to the smallest particles known to man, including atoms and electrons.<\/p>\n

In a quantum system, superposition means that a particle \u201ccan be \u2018here\u2019 and \u2018there,\u2019 or \u2018up\u2019 and \u2018down\u2019 at the same time.\u201d<\/p>\n

Entanglement \u2014 or \u201cspooky action at a distance,\u201d as Einstein described it \u2014 is a relationship between two or more particles so strong that their \u201cactions\u201d are linked no matter the distance separating them.<\/p>\n

The two together mean exponentially greater computing power: a classical computer thinks with ones and zeros. A quantum computer will think with ones, zeros, and \u201csuperpositions\u201d of ones and zeros.<\/p>\n

Those \u201cuncrackable keys\u201d that QUESS is transmitting? That rests on the fact that any attempt to observe or measure a quantum system will disturb the system. This is the principle behind quantum key distribution (QKD), which is a hyper-souped-up form of cryptography.<\/p>\n

What it boils down to is that any attempt to hack a quantum computer or quantum network will be detectable.<\/p>\n

One main question is this: How close are we to the widespread adoption of quantum computing?<\/p>\n

The short answer to the first, says quantum computer expert Daniel Lidar, is within \u201ca couple of years, devices with more than 40 qubits could become a reality.\u201d<\/p>\n

The more complex answer is that it\u2019s a matter not necessarily of time but of distance.<\/p>\n

What it boils down to is that any attempt to hack a quantum computer or quantum network will be detectable.<\/em><\/strong><\/p>\n

QKD, as IEEE Spectrum<\/em> notes, \u201cencodes information in the states of individual photons. And those photons can\u2019t travel indefinitely in fiber or through the air; the longer the distance, the greater the chance they will be absorbed or scattered.\u201d<\/p>\n

Current technology is such that to send a single bit of secure quantum key over 1,000 kilometers of fiber would take 300 years.<\/p>\n

Obviously, we don\u2019t have that kind of time. After all, as Scientific American<\/em> notes \u2013 and as many of us experienced during the October 21 Mirai botnet distributed denial of service (DDoS) attack<\/strong><\/a> on a major U.S. Domain Name System service provider \u2013 \u201cthe Internet-of-Things is growing faster than the ability to defend it.\u201d<\/p>\n

Here\u2019s another problem: Just as a quantum key can\u2019t be hacked without creating a detectable signal, one can\u2019t be copied without breaking it. China\u2019s solution is to incorporate an interconnected chain of \u201c\u2018trusted nodes\u2019\u2026 that measures the key and then transmits it with fresh photons to the next node in the chain.\u201d<\/p>\n

It\u2019s imperfect because these nodes have to convert to the traditional binary encoding and then back to quantum when they send information to the next link. This traditional binary step creates an opportunity for hackers to do their worst, undetected.<\/p>\n

The solution will be entanglement and the use of \u201cquantum repeaters.\u201d Research here is still in the very early stages, though it is progressing. One solution is an optical quantum repeater that reduces the quantum memory requirement and also the energy required to run such systems.<\/p>\n

As for when we\u2019ll see a fully functional, large-scale quantum network, we\u2019re probably talking a matter of decades. It is, after all, \u201cone of the most ambitious endeavors in quantum physics right now,\u201d said Phys.org.<\/p>\n

Four years ago, scientists at the Max Planck Institute of Quantum Optics established the first universal quantum network, connecting two labs 21 meters apart. The Chinese are about to link up two major cities 2,000 kilometers apart.<\/p>\n

So we\u2019re getting there. And it\u2019s going to happen faster than you think.<\/p>\n

\n

Upticks, Downticks<\/h2>\n

\"Downtick\" The Russell 2000 \u2014 barring a prodigious rally today \u2014 will close the first month of the fourth quarter in the red. As of Friday, October 28, the small-cap benchmark had shed nearly 4% since the Friday, September 30, close. The S&P 500, meanwhile, was off about 0.8%, and the Nasdaq Composite was down 1%.<\/p>\n

\"Uptick\" The Commerce Department reported last Friday that real gross domestic product (GDP) grew at an annual rate of 2.9% during the third quarter, exceeding a consensus forecast of 2.6%. It\u2019s also the fastest rate of growth in two years. Second-quarter GDP growth was 1.4%, while first-quarter growth was 0.8%.<\/p>\n

\"Downtick\" The Commerce Department also reported seasonally adjusted annualized new home sales of 593,000 for September \u2014 3.1% higher than the 575,000 revised run rate for August. Note, however, that the August figure was revised down from an initial report of 609,000.<\/p>\n

\"Uptick\" The IHS Markit Flash U.S. Manufacturing Purchasing Managers\u2019 Index (PMI) rose to 53.2 in October, from 51.5 in September, beating a consensus forecast of 51.5. The October 2016 reading was the highest for the Markit flash PMI since October 2015. Output and new order growth were at 12-month highs, while manufacturers reported the fastest expansion of input buying since June 2015.<\/p>\n

\"Downtick\" The Conference Board Consumer Confidence Index declined to 98.6 in October, from 103.5 in September, reversing two straight month-over-month increases. The Present Situation Index slipped to 120.6 from 127.9, and the Expectations Index fell to 83.9 from 87.2 a month ago.<\/p>\n

\"Uptick\" The Markit Flash Services PMI surged to 54.8 \u2014 its highest level since November 2015 \u2014 due to the highest level of new orders in 2016. Service providers reported that \u201csupportive domestic economic conditions and an improvement in clients\u2019 willingness to spend\u201d drove the 2.5-point improvement over the September reading.<\/p>\n

\"Downtick\" According to FactSet, through October 21, with 23% of S&P 500 companies reporting, \u201cblended earnings\u201d for the S&P 500 have declined by 0.3%. If it remains in the red, it will be the first time the Index has recorded six consecutive quarters of year-over-year declines in earnings since FactSet began tracking the data in the third quarter of 2008.<\/p>\n

\"Uptick\" Extra-good news: It\u2019s Suffering Fools Lightly season again. San Antonio Spurs head coach Gregg Popovich is a national treasure: smart, competent, and funny as hell. Click the link<\/strong><\/a> and watch him prove that there is such thing as a stupid question.<\/p>\n

Smart Investing,<\/p>\n

David Dittman
\nEditorial Director, Wall Street Daily<\/i><\/p>\n

The post Can Quantum Computing Produce a Hack-Proof Network?<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Eventually, the world\u2019s most famous physicist became one of quantum theory\u2019s biggest critics. But some of the things Einstein talked about will probably be critical parts of the solution to network security. On August 16, 2016, the Chinese Academy of Sciences (CAS) launched the world\u2019s first quantum communications satellite. It was a huge […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-97527","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=97527"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97527\/revisions"}],"predecessor-version":[{"id":97532,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97527\/revisions\/97532"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=97527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=97527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=97527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}