What Is Quantum

Computing? 2019
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Table of Contents

CONTENTS
A changing computing landscape 6
• Computing beyond Moore’s Law
• The rise of quantum computing
Types of quantum computing 11
• Quantum annealing
• Quantum simulations
• Universal quantum computing
Quantum computing industry landscape 16
• Who’s investing in quantum computing?
Quantum computing applications across industries 21
• Healthcare
• Financial Services
• Cybersecurity
• Agriculture
• Cloud Computing
• Quantum Artificial Intelligence
How close are we to quantum supremacy? 29

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Intro

Quantum computing is poised

to upend entire industries from
telecommunications and cybersecurity
to advanced manufacturing, finance,
medicine, and beyond — but few
understand how quantum computers
actually work.
In the near future, quantum computing could change the world.

Take climate change for example: Because of the complexity of

the climate system, seemingly endless data, and growing
limitations on today’s computing power, no classical computer (like
your desktop) can simulate the earth’s climate changes with 100%
accuracy.

Quantum computers, on the other hand, are supercomputers

equipped with advanced processing powers. Taking tons of climate
variables into account, they could create data-driven models to help
forecast weather patterns and prepare for natural disasters.

Beyond climate simulations, these advanced computing systems

could make ultra-fast calculations on the biggest and most
complex datasets — and the technology is certainly catching media
attention.

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But how exactly does it work?

What is quantum computing?

Quantum computers can process massive and complex datasets
more efficiently than classical computers.

They use the fundamentals of quantum mechanics to speed

up the process of solving complex computations. Often those
computations incorporate a seemingly unlimited number of
variables, and the potential applications span industries from
genomics to finance.

Quantum computers are already reinventing aspects of

cybersecurity through their ability to break codes and encrypt
electronic communications. Some of the biggest players in tech —
including Google, Microsoft, Intel, IBM, and Alibaba — are exploring
quantum computing for better cybersecurity and more, a sign

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that the next big computing race is
already underway.

While Google has been exploring

quantum computing for ultra-fast
internet search since at least 2009, it
remains to be seen who will emerge as
the leader in the nascent commercial
quantum computing industry.

In this explainer, we dive more

into what quantum computing is,
the benefits associated with the
technology, its applications, and IBM’s “Q” machine
industry players to watch.

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A changing computing landscape

Before we can understand quantum

computing and its applications,
we must take a look at how its
predecessor — classical computing
(transistor-based computing) — has
reached its limits.

Note, classical bits (stored on

transistors) are the basic units
f information processing in a
classical computer.

They are basically electronic on/off

switches embedded in microchips
that alternate between 0 or 1 to
process information. The more
transistors on a chip, the faster the
chip can process electrical signals,
and the better a computer becomes.

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COMPUTING BEYOND MOORE’S LAW

In 1965, Intel co-founder Gordon Moore observed that the number

of transistors per square inch on a microchip had doubled every
year while the costs were cut in half (since their invention in 1958).
This observation is known as Moore’s Law.

Moore’s Law is significant because it means that computers and

computing power both get smaller and faster over time.

However, Moore’s law is slowing down (some say to a halt), and

consequently, classical computers are not improving at the same
rate they used to.

Intel, unsurprisingly, has relied on Moore’s Law to fuel chip

innovation for the last 50+ years. Now, Intel, along with other
computer manufacturing giants, has suggested that transistor-
based computing is approaching a wall.

Sometime in the 2020s — if we want to continue to reap the

benefits of exponential growth in computing power — we will have
to find a fundamentally different way of processing information.

Enter quantum computing.

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THE RISE OF QUANTUM COMPUTING

Quantum computers could offer a huge efficiency advantage

for solving certain types of computations that stump today’s
computers — and would continue to stump them even if Moore’s
Law were to carry on indefinitely.

For starters, think about a phone book, and then imagine you
have a specific number to look up in that phone book. A classical
computer will search each line of the phone book, until it finds
and returns the match. In theory, a quantum computer could
search the entire phone book instantaneously, assessing each line
simultaneously and returning the result much faster than a classical
computer.

These problems, which require the best combination of variables

and solutions, are often called optimization problems. They are
some of the most complex problems in the world, with potentially
game-changing benefits.

Imagine you are building the world’s tallest skyscraper, and you
have a budget for the construction equipment, raw materials,
and labor, as well as compliance requirements. The problem you
need to solve is how to determine the optimum combination of
equipment, materials, and labor, etc. to maximize your investment.
Quantum computing could help factor in all these variables to help
us most efficiently plan for massive projects.

Optimization problems are faced across industries including

software design, logistics, finance, web search, genomics, and
more. While the toughest optimization problems in these industries
stump classical computers, they are well-suited for being solved on
a quantum machine.

Quantum computers differ from classical computers in that

improvement for the latter mainly relies on advancement in the
materials that make up transistors and microchips.

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Quantum computers do not use transistors (or classical bits).
Instead, they use qubits.

Qubits are the basic units for processing information in a

quantum computer.

Qubits can be any value from 0 to 1, or have properties of both of

these values simultaneously. Right away, there are a whole lot more
possibilities for performing computations.

Additionally, quantum computers rely on naturally occurring

quantum-mechanical phenomena, or two important states of
matter known as superposition and entanglement. These states of
matter, when harnessed for computing purposes, can speed up our
ability to perform immense computations.

The most advanced quantum computing chips available today,

under development by Berkeley-based startup Rigetti Computing,
can make use of up to 19 qubits, although the company is in the
process of creating a 128 qubit chip by late 2019.

However, the race to build the most powerful quantum computer with
the most qubits has been underway since at least the late 1990s.

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In 1998, Oxford University researchers in the UK announced
that they had made a breakthrough with the ability to compute
information using two qubits. Fast forward to 2017, and IBM proved
the ability to compute on 50 qubits. Quantum computing power
increased by 25x in 20 years — a seemingly slow start compared to
today’s pace of advancement.

In 2018, Google demonstrated 72 qubit information processing.

In August, Rigetti Computing announced plans for a 128 qubit
quantum chip.

Steve Jurvetson, managing director of the investment firm Draper

Fisher Jurvetson and an investor in the quantum computing
company D-Wave Systems (an early leader specializing in hybrid-
quantum and classical machines), dubbed the phenomenon of the
increasing capacity of quantum computers as “Rose’s Law.”

Rose’s Law for quantum computing parallels the idea behind

Moore’s Law for semiconductor processor development. In short,
quantum computers are already getting really fast, really quickly.

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Types of quantum computing

There are three primary types of quantum computing. Each type

differs by the amount of processing power (qubits) needed and
number of possible applications, as well as the time required to
become commercially viable.

QUANTUM ANNEALING
Quantum annealing is best for solving optimization problems.

In other words, researchers are trying to find the best (most

efficient) possible configuration among many possible
combinations of variables.

For example, Volkswagen (VW) recently conducted a quantum

experiment to optimize traffic flows in the overcrowded city of
Beijing, China. The experiment was run in partnership with Google
and D-Wave Systems.

The algorithm could successfully reduce traffic by choosing the

ideal path for each vehicle, according to VW.

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Imagine applying this experiment on a global scale — optimizing
every airline route, airport schedule, weather data, fuel costs, and
passenger information, etc. for everyone, to get the most cost
efficient travel and logistics solutions.

Classical computers would take thousands of years to compute

the optimum solution to such a problem. Quantum computers,
theoretically, can do it in a few hours or less, as the number of
qubits per quantum computer increases.

Annealing applies to an array of industry problems. For example,

Airbus — a global aerospace & defense corporation known for
developing military and commercial aircraft — established a
quantum computing unit at its Newport, UK plant in 2015.

The company is exploring quantum annealing for digital modeling

and materials sciences.

Airflow modeling of an aircraft wing

While it currently takes engineers years to model the process of air

flowing over an aircraft’s wing, a quantum computer could take just
a few hours to model every single atom of air flowing over a wing at
all angles and speeds to determine the optimum or most efficient
wing design.

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Quantum annealing is the least powerful and most narrowly applied
form of quantum computing.

In fact, experts agree that today’s supercomputers can solve

some optimization problems on par with today’s quantum
annealing machines.

QUANTUM SIMULATIONS
Quantum simulations explore specific problems in quantum physics
that are beyond the capacity of classical systems. Simulating
complex quantum phenomena could be one of the most important
applications of quantum computing.

One area that is particularly promising includes modeling the effect

of a chemical stimulation on a large number of subatomic particles
— otherwise known as quantum chemistry.

In particular, quantum simulators could be used to simulate protein

folding — one of biochemistry’s toughest problems.

Unfolded versus folded protein structure

Misfolded proteins can cause diseases like Alzheimer’s and

Parkinson’s, and researchers testing new treatments must learn
which drugs cause reactions for each protein through the use of
random computer modeling.

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It is said that if a protein were to attain its correctly folded
configuration by sequentially sampling all the possible drug-induced
effects, it would require a time longer than the age of the universe
to arrive at its correct natural state.

A realistic mapping of the protein folding sequence would be a

major scientific and healthcare breakthrough that could save lives.

Quantum computers can help compute the vast number of possible

protein folding sequences for making more effective medications.
In the future, quantum simulations will enable rapid designer
drug testing by accounting for every possible protein-to-drug
combination.

UNIVERSAL QUANTUM COMPUTING

Universal quantum computers are the most powerful and most
generally applicable, but also the hardest to build. A truly universal
quantum computer would likely make use of over 100,000 qubits —
some estimates put it at 1M qubits. Remember that today, the most
qubits we can access is not even 128.

The basic idea behind the universal quantum computer is that you
could direct the machine at any massively complex computation
and get a quick solution. This includes solving the aforementioned
annealing equations, simulating quantum phenomena, and more.

Researchers have been designing algorithms for years that are only
possible on a universal quantum computer. The most well-known
algorithms are Shor’s algorithm for factoring numbers (to be used
for advanced code breaking), and Grover’s algorithm for quickly
searching unstructured and massive sets of data (to be used for
advanced internet search, etc).

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Rigetti’s 128 qubit quantum chip

At least 50 other unique algorithms have been developed to run on

a universal quantum computer.

In the distant future, universal quantum computers could

revolutionize the field of artificial intelligence.

Quantum AI could enable machine learning that is faster than that

of classical computers.

Recent work has produced algorithms that could act as the

building blocks of quantum machine learning, but the hardware and
software to fully realize quantum artificial intelligence are still as
elusive to us as a general quantum computer itself.

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Quantum computing industry
landscape

There are only a small number of private companies in the industry

that have been able to raise at least $50M (and fewer with over
$100M), which suggests that commercial application of quantum
computers — for both hardware and software — is nascent at this
point, despite the hype.

D-Wave is the most well-funded private quantum computing

company with $210M raised to date, followed by Rigetti Computing
($119M), Silicon Quantum Computing ($66M), and Cambridge
Quantum Computing (CQC) ($50M).

Notably, deals to these four companies accounted for ~70% of

the industry’s total funding since 2013. Additionally, deals to private
quantum computing companies overall reached an all-time high in
2018.

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Over the past 6 years, total deals increased over 200% — from 7 in
2013 to 24 in 2018. Among the top deals in 2018, Rigetti Computing
raised a $50M Series C in August.

In 2017, total funding to quantum computing startups reached an

all-time high at over $200M invested across just 14 deals. Notably,
five startups raised rounds of over $20M in 2017, including: Silicon
Quantum Computing, Rigetti, 1QBit, IonQ, and D-Wave.

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WHO’S INVESTING IN QUANTUM COMPUTING?
In tandem with increasing interest across the space, the overall
ecosystem supporting the development of these companies is
also growing. Mainstream VCs along with corporations are already
betting on private quantum computing companies.

Google Ventures (GV) and Amazon, among others, have backed

IonQ, which is developing general purpose quantum computers to
address a broad array of applications. Notable VCs in the industry
include Sequoia Capital, which invested in quantum computing
hardware company Quantum Circuits, Inc. (QCI). Andreessen
Horowitz (a16z) has invested in Rigetti Computing and Draper
Fisher Jurvetson (DFJ) has been involved with multiple investments
in D-Wave Systems.

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Securing communications with quantum computing got a boost
in February 2018, when South Korean mobile telecommunications
operator SK Telecom entered the game, followed by Germany’s
Deutsche Telekom a few months later. The telecom companies
bought a $65M majority stake and a minority stake, respectively, in
ID Quantique, a provider of multi-protocol network encryption for
securing communications based on quantum technologies.

Some of the world’s largest corporations are also pursuing in-house

quantum computing projects.

Google operates a D-Wave Systems quantum computer in the

Quantum Artificial Intelligence Lab (QuAIL). The lab is hosted by
NASA and the Universities Space Research Association at the
NASA Ames Research Center in Mountain View, California.

In July 2015, Alibaba’s Aliyun cloud unit and the Chinese Academy
of Sciences established a research facility based in Shanghai called
the Alibaba Quantum Computing Laboratory. The lab
looks into quantum security technology for e-commerce and
data centers.

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In January 2019, IBM unveiled its first commercial quantum
computer at the Consumer Electronics Show (CES). IBM’s Q
System One uses 20 qubits and has both classical and quantum
components. The company’s announcement made it clear that it
will take time before commercial quantum computers can beat
today’s classical machines:

“IBM Q systems are designed to one day

tackle problems that are currently seen
as too complex and exponential in nature
for classical systems to handle.”
An array of other tech companies including Hewlett Packard, Intel,
and Microsoft are also pursuing quantum computing.

Several defense contractors and consulting firms have also

made quantum computing plays including: Booz Allen Hamilton,
Lockheed Martin, and Raytheon, among others.

Along with company investments, the EU, US, Australian, and

Chinese governments are also backing projects aimed at building
quantum computers.

In the US, NASA, the NSA, and the Los Alamos National Laboratory
are all involved in quantum computing projects.

China’s government launched the world’s first quantum satellite in

the quest for more secure communications in 2016.

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Quantum computing across industries

As the cost of quantum computing resources comes down, more

industry players will emerge.

And as more players delve into the industry, quantum computing

will see increasing applications across industries, especially as
classical computers prove inefficient in some cases.

We are already beginning to see its implications across different

sectors.

“We’re at the dawn of this quantum

computing age. We believe we’re right
on the cusp of providing capabilities
you can’t get with classical computing.
In almost every discipline you’ll see
these types of computers make this
kind of impact.”
– Vern Brownell, CEO, D-Wave Systems

From healthcare to agriculture, here are several sectors that would

benefit from quantum computing’s potential.

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HEALTHCARE
Quantum computers could help speed up the process of comparing
the interactions and effects of different drugs on a range of
diseases to determine the best medications.

Additionally, quantum computing could also lead to truly

personalized medicine — using advancements in genomics to
create tailored treatment plans specific to every patient.

DNA Double Helix

Genome sequencing creates lots of data such that a representation

of a person’s whole DNA strand requires massive computational
power and storage capacity. Companies are rapidly bringing down
the cost and resources needed to sequence the human genome;
however, a quantum computer would theoretically make the way
genomes are sequenced more efficient and easier to scale globally.

A quantum computer could assemble and sort through all

possible gene variants at the same time and instantly find all
nucleotide pairs, making the whole process of genome sequencing
exponentially shorter.

Rapid quantum genome sequencing could allow us to pool the

world’s DNA into a broad population health database. Using
quantum computers, we would also be able to synthesize patterns

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in the world’s DNA data for understanding our genetic makeup at
a deeper level, and also potentially uncover previously unknown
patterns of disease.

FINANCIAL SERVICES
Financial analysts typically rely on algorithms that are made up
of probabilities and assumptions about the way markets and
portfolios will perform. Quantum computing could help eliminate
data blind spots and prevent unfounded financial assumptions from
creating losses.

Specifically, the areas of quantum computing that show the most

promise for financial services are in solving complex optimization
problems such as portfolio risk optimization and fraud detection.

Quantum computing could be used to better determine attractive

Monte Carlo simulation in finance

portfolios given thousands of assets with interconnecting

dependencies and identify key fraud patterns more effectively.

One other area of finance quantum computers could change

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involves running what are known commonly in the industry
as Monte Carlo simulations — a probability simulation used
to understand the impact of risk and uncertainty in financial
forecasting models.

While classical computers can only search one file at a time or

run a single Monte Carlo simulation of a portfolio, a quantum
computer could perform these operations in parallel and optimize
transactions more efficiently.

CYBERSECURITY
Quantum computers can be used to break cryptographic codes that
we use today to keep sensitive data and electronic communications
secure.

However, quantum computers could also be used to secure data from

quantum hacking — a technique known as quantum encryption.

Quantum encryption is the idea of sending entangled particles of

light (entangled photons) over long distances in what is known
as Quantum Key Distribution (QKD) for the purpose of securing
sensitive communications.

China’s Micius quantum satellite

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The most important point is that if quantum encrypted
communications are intercepted by anyone, the encryption scheme
will show immediate signs of disruption and reveal that the
correspondence is not secure. This relies on the principle that the
act of measuring a quantum system disrupts the system. This is
known as the “measurement effect.”

AGRICULTURE
Quantum computers could help us more efficiently make fertilizers.

Nearly all of the fertilizers that help feed us are made out of
ammonia. The ability to produce ammonia (or a substitute) more
efficiently would mean cheaper and less energy intensive fertilizers.
Easier access to better fertilizers would benefit the environment
and help feed the planet’s growing population.

So little progress has been made on

improving the process to create or
replace ammonia because the number
of possible catalyst combinations to
do so is infinite.
Ammonia = nitrogen and hydrogen

Essentially, we cannot artificially simulate the process without an

industrial technique from the 1900s known as the Haber-Bosch
Process. The process involves extremely high heat and pressure to
convert nitrogen, hydrogen, and iron into ammonia.

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Using today’s supercomputers to digitally test for the right catalytic
combinations to make ammonia would take centuries
to solve.

A quantum computer would be able to quickly analyze chemical

catalytic processes, and come up with the optimal catalyst
combination to create ammonia.

Moreover, we know that a tiny bacteria in the roots of plants

performs this same process every day at very low energy cost using
a specific molecule called nitrogenase. This molecule is beyond the
abilities of our largest supercomputers to simulate, but would be
within the reach of a quantum computer.

Note, producing energy efficient fertilizer is just one of the many

ways we can solve big problems with the ability to accurately
simulate molecular behavior. Similar problems exist across climate
change, healthcare, materials sciences, energy, and more.

CLOUD COMPUTING
Quantum cloud computing is emerging as a promising field within
the industry. Quantum cloud platforms could simplify programming
and provide low-cost access to quantum machines.

The company QC Ware is an early-stage startup developing a cloud-

based platform for quantum computing. QC Ware’s backers include
Airbus Ventures and Goldman Sachs, among others.

Major corporations including IBM, Google, and Alibaba are also

pursuing quantum cloud computing projects.

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OTHER
Remember, quantum computers are good at finding optimum
solutions to problems with a seemingly infinite number of variables,
protecting sensitive data and communications, and accurately
simulating quantum phenomena and molecular behavior.
Solving those problems is at the core of nearly every commercial
application of quantum computing.

Notably, quantum computers may also be the key to safeguarding

our digital future with secure software development operations.

We increasingly rely on software to drive cars, fly planes, provide

healthcare, make financial decisions, and more. Quantum
computers can rapidly evaluate every possible scenario and
condition of a code base to find flaws before there is a problem.
Capturing flaws in the code behind these critical activities could
soon mean the difference between life and death for many people.

Every material sciences problem gets easier to solve with a

quantum computer. Quantum computers could apply to the
design of almost any material for any purpose. The range of
possibilities spans transport, construction, sensors, defense,
medical equipment, and much more. Materials in those industries
are ultimately made of molecules and atoms whose properties and
interactions are fundamentally quantum mechanical.

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LOOKING AHEAD WITH QUANTUM
ARTIFICIAL INTELLIGENCE
In the distant future, quantum computers could be used to
accelerate the field of artificial intelligence.

Quantum machine learning could create AI that more efficiently

performs complex tasks in human-like ways. For example, enabling
humanoid robots to make optimized decisions in real-time and
under unpredictable circumstances.

Training AI on quantum computers could advance computer

vision, pattern recognition, voice recognition, machine translation,
and more.

Quantum AI is still a young and unproven part of the industry.

However, several startups have begun to advance research and
development in the field including: Zapata Computing, Xanadu,
and Qindom.

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How close are we to quantum
supremacy?

Quantum supremacy is the ability of quantum computers to solve

problems that classical computers practically cannot. Remember,
the ideal quantum computer is one that is universally applicable
and superior to classical machines.

Companies and governments have claimed to operate a quantum

computer that achieves quantum supremacy. In March 2018,
for example, Google claimed its 72 qubit chip solved a carefully
selected problem faster than classical machines. Shortly after
the announcement, Alibaba’s researchers announced they had
solved the same problem using classical systems. The exchange
underscores the veracity with which the world’s most powerful
companies are racing to lead the charge into quantum supremacy.

Today, the most powerful quantum computers made by companies

that include D-Wave Systems, Alibaba, IBM, and Rigetti Quantum
Computing, among others, are a hybrid classical quantum offering.
That is, they offer a mix of powerful classical systems boosted by
impressive quantum capabilities.

However, the industry is developing fast. Experts agree that by 2030,

we could see quantum computers outpace classical counterparts.

Significant technical barriers must be surmounted before quantum

computing achieves its potential. This will require the development
of more stable hardware, commercial platforms for software
development, and the development of cloud computing capabilities
for the distribution and access of quantum computing resources.

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