Anyone who is entrepreneurial does not only have to deal with the current day-to-day business. It is at least as important to keep an eye on future developments in order to be able to react in good time. In larger companies, entire departments deal with this topic, some of which develop extremely complex risk models. The problem, however, is that the more detailed the analysis should be and the further it extends into the future, the more computing power is required. At Deutsche Börse, for example, there are hundreds of variables that are required to depict macroeconomic developments on their own. But if employees want to see how changes in individual variables affect the overall risk, they have to live with limitations. If you wanted to calculate all the effects down to the last detail, this would take several months with classic computers.
The first quantum computers could be ready for use in 2025
Deutsche Börse has therefore launched a pilot project together with the startup Jos Quantum. The idea: quantum computers should be used to calculate the simulation. This could shorten the calculation time from several months to only around thirty minutes. However, the subjunctive must still be used here. Because IBM has meanwhile brought a commercial quantum computer onto the market . However, this is not yet more powerful than a classic supercomputer. The Jos Quantum experts therefore have to work with assumptions themselves. Nevertheless, they are quite optimistic: If politicians actually invest billions in the development of quantum computers over the next few years – as promised – they could be able to calculate Deutsche Börse's complex risk models as early as 2025. This result of the collaboration was positive enough to convince the company to pursue the matter further.
Google is also doing research in this area
The risk analysis is already quite robust today. However, through the use of quantum computers, certain developments can be forecast even more precisely. In addition, the underlying skills could also be used in other obvious areas – such as analyzing credit risk. The great advantage of quantum computers is that the individual arithmetic units – called qbits – can not only assume state 1 or 0. Instead, they are able to embody multiple states at the same time. This in turn ensures that several arithmetic operations can be carried out in parallel – which, especially with complex models, massively reduces the computing time. However, this is not yet the case because the technology is still in its infancy. At least numerous well-known companies have dedicated themselves to the topic. In addition to IBM, this is also Google, for example .
Via: Cornell University