The similarity between blockchain technology and Quantum computing is their evolutionary nature. Both these innovations are new kids on the block and have been still under the development phase. The applications of blockchain technology and Quantum computing are quite diverse, too, and if applied in conjunction, businesses cutting across the industries can be benefited tremendously.
Blockchain and Quantum Computing: A Brief Introduction
Blockchain technology works on the open ledger principal and distributes the data in a secured cryptographically manner. One of the biggest merits of the blockchain is its decentralized characteristic, which makes data immune to mutation while making it accessible to all the participating nodes. This is nothing but the democratization of the information as the technology takes away the influence of any third-party that usually happens to be a dominant force in almost all businesses.
Quantum computing, on the other hand, is the evolution of standard computing prowess to such an extent that the data processing becomes extremely fast and efficient. Using quantum mechanics, quantum computers can handle exponentially larger data than what standard systems can do. Just for the reference, Google estimated that the calculation done by its Quantum computer would take an ordinary machine 10,000 years to accomplish – It’s that fast a quantum computer can be.
Application in Financial Technology Domain
Now given the exceptionally high processing speed of quantum computing and ultra-high security of the blockchain technology, the financial sector can be immensely benefited from the application of these new innovations. We already have a number of use cases of blockchain in the financial sector and add to this the high processing power of quantum computers, the contentious issues related to processing time, processing speed, and high costs associated with financial transactions can be easily weeded out from the system.
The high computational prowess of quantum computing can be utilized to detect frauds, enhancing optimization techniques, modeling and remodeling of financial portfolios, and so forth. All these applications will improve the predictive analysis in the financial domain and has a lot of significance for financial brokers, insurance agents, traders, and mutual fund executives. The enhanced computational speed with a faster and more accurate prediction of the future scenarios can improve customer satisfaction and acquisition rate which, in turn, will have a positive impact on the financial sector.
Blockchain Technology, on the other hand, is already changing the face of the financial industry. Right from encrypting the information, sharing the data, or, more specifically, the overseas payment, blockchain is helping the financial industry to provide more customer benefits by optimizing its cost structure and bringing down the transactional time.
Impact of Quantum Computing on Blockchain
Coming to the possible impact of quantum computing on the blockchain technology, the scenario is still not clear owing to the nascent stage of development that quantum computing is in. However, given the exceptionally fast computational speed, quantum computing possesses, it might render the much-touted “cryptographically secured” feature of the blockchain susceptible.
Quantum computers are exceptionally fast and capable of solving ultra-complex mathematical equations with the utmost ease. This means that these computers can easily solve the cryptographic hash, thereby leaving blockchain vulnerable to hacks. That said, it is too early to make any concrete prediction as both the field of blockchain technology and Quantum computing is undergoing tectonic shifts and nothing is set in stone as of now.
The integration of blockchain technology and Quantum computing can do wonders for a range of business sectors, including the likes of financial technology, Medical and Health Care Services, IT Industry, and Supply Chain and Logistics. Researchers need to find ways in order to combine positive aspects of both these technologies (a high-security aspect of blockchain and exceptional processing speed of quantum computers) with helping businesses realize their full potential.