Chinese researchers from Shanghai University have claimed a significant breakthrough in quantum computing, asserting that they breached encryption algorithms commonly used in banking and cryptocurrency. Led by Wang Chao, the team employed a quantum computer from Canada’s D-Wave Systems to exploit vulnerabilities in the Present, Gift-64, and Rectangle algorithms, which form the backbone of the Substitution-Permutation Network (SPN) structure underpinning advanced encryption standards (AES) widely used for securing cryptocurrency wallets.
While AES-256 is regarded as one of the most secure encryption standards, the researchers warn that the advent of quantum computers could pose a serious threat to traditional password protection. Their technique, based on quantum annealing, operates similarly to artificial intelligence algorithms, allowing for more efficient searches by circumventing obstacles that traditional methods struggle to overcome.
Despite these advancements, the researchers noted that practical limitations remain, such as environmental factors and hardware constraints that prevent a full-scale quantum attack at this time. However, they emphasised that future developments could uncover new vulnerabilities in current cryptographic systems.
Ethereum co-founder Vitalik Buterin has proposed a potential solution to mitigate the risk posed by quantum computing, suggesting a hard fork of the Ethereum blockchain to implement new wallet software and enhance security. He indicated that the necessary infrastructure for such a move could be developed promptly, providing a proactive approach to safeguarding user funds.
Israel-based startup Quantum Source has secured $50 million in funding to advance the development of quantum computers that utilise light-based technology. That approach, which generates photons for data processing, promises to be more efficient than traditional methods. By allowing quantum systems to operate at room temperature, Quantum Source’s technology eliminates the need for bulky, costly cooling systems, making it easier to deploy in standard data centres.
CEO Oded Melamed explained that their method offers significantly greater efficiency, potentially making quantum computers smaller and more practical for widespread use. The company plans to use the new funding to build a complete quantum system capable of generating millions of qubits, the essential units of quantum computing.
The funding round was led by California-based Eclipse and included investments from Standard Investments, Level VC, and Canon Equity. Since its founding in 2021, Quantum Source has raised $77 million and currently employs 45 people in its Tel Aviv suburb office.
The United States has announced new export controls targeting advanced technologies, including quantum computing and GAAFET chip technology, aligning with similar measures by international partners. The updated regulations cover quantum computing equipment, advanced semiconductor production, and additive manufacturing technologies.
Commerce official Alan Estevez emphasised that these controls aim to keep pace with technological advancements and enhance their effectiveness through international cooperation. The most notable changes involve stringent reporting requirements for foreign national employees working on quantum computing in the US, while GAAFET controls will focus on production rather than design.
Trade lawyer Kevin Wolf highlighted that while these measures are intended to safeguard technological advancements, they might impact hiring in the quantum sector. Celia Merzbacher from the Quantum Economic Development Consortium expressed concern that these reporting requirements could deter small companies from hiring foreign talent, potentially limiting their access to skilled professionals crucial for innovation.
Ericsson, Nokia, and Vodafone have united in a call to action for European policymakers to enhance digital competitiveness through advanced connectivity and digitalisation. They argue that achieving a true Digital Single Market is essential for fostering innovation and ensuring Europe can compete globally. The following initiative emphasises the need for coherent implementation of existing regulations and the avoidance of unnecessary regulatory burdens that could hinder the rapid deployment of digital infrastructure.
Ericsson, Nokia, and Vodafone highlight the importance of incentivising investment in advanced connectivity solutions, such as 5G and future 6G technologies. They stress that a modernised regulatory framework is crucial for maintaining healthy telecom operators capable of making substantial investments in infrastructure. This includes advocating for longer spectrum licenses and harmonised rules across the EU member states, facilitating a more robust telecommunications landscape.
Ericsson, Nokia, and Vodafone also propose that policymakers differentiate between business-to-business (B2B) and consumer-facing technologies when crafting regulations. Tailoring regulations to these sectors’ specific needs and operational structures will help create a more level playing field and address market failures effectively. This distinction is vital for fostering an environment where trusted companies can thrive and innovate.
Ericsson, Nokia, and Vodafone highlight the need for Europe to prepare for emerging technologies like quantum computing and AI. They advocate for policies encouraging experimentation and attracting private investment, ensuring Europe can leverage these advancements while addressing security challenges.
Quantum computing is on the brink of revolutionising industries like drug development and climate change mitigation, with experts predicting significant breakthroughs in the near future. Cambridge-based Riverlane, led by founder Steve Brierley, is at the forefront of this movement, having developed the world’s first quantum decoder chip to correct errors that currently hinder the technology. Brierley believes quantum computing will soon reach a ‘Sputnik’ moment, marking a significant leap forward in computational power.
Riverlane recently raised $75 million in Series C funding, a strong sign of investor confidence in the potential of quantum computing. The company’s vice president of quantum science, Earl Campbell, stated that within the next few years, quantum computers could achieve error-free operations on a large scale, allowing them to outperform conventional computers in certain tasks. This capability is particularly promising for simulating quantum systems, which could lead to breakthroughs in medicine, more efficient fertiliser production, and advanced battery technologies—all critical for addressing global challenges like climate change.
Despite the immense potential, quantum computing faces significant challenges, including the need for sophisticated error correction to manage the highly sensitive qubits at its core. However, with continued advancements and scaling, experts believe quantum computing will eventually solve problems deemed unsolvable by traditional methods. As the technology advances, there is a growing awareness of the need for regulatory frameworks to manage its impact, particularly given its potential to disrupt existing cryptographic systems and other critical areas.
Britain has initiated a new technology security partnership with India, aiming to boost economic growth and collaboration in telecom security while fostering investment in emerging technologies. The agreement will enhance cooperation on critical technologies, including semiconductors, quantum computing, and AI.
British Foreign Secretary David Lammy emphasised that this partnership would address future AI and critical minerals challenges, promoting mutual growth, innovation, job creation, and investment. Lammy made these remarks during his visit to India, where he met with Prime Minister Narendra Modi and India’s Minister for External Affairs.
Additionally, both nations have committed to closer collaboration on tackling climate change. That includes mobilising finance and advancing partnerships in offshore wind energy and green hydrogen.
Paris-based quantum computing startup Pasqal has inked a significant deal with Saudi Arabia’s oil giant Aramco, marking the installation of the kingdom’s first quantum computer. Scheduled for deployment in the latter half of 2025, Pasqal will oversee the installation, maintenance, and operation of a powerful 200-cubit quantum computer.
Georges-Olivier Reymond, CEO and co-founder of Pasqal expressed enthusiasm about the partnership, highlighting its role in advancing the commercial embrace of quantum technology within Saudi Arabia. The initiative follows Pasqal’s successful provision of quantum computers to both France and Germany. Notably, Alain Aspect, a co-founder of Pasqal, was awarded the 2022 Nobel Prize in Physics for groundbreaking experiments underpinning quantum mechanics, laying the foundation for quantum computing.
Why does it matter?
The allure of quantum computing lies in its potential to revolutionise computational capabilities, with projections suggesting that quantum computers could outpace today’s supercomputers by millions of times in certain computations. This partnership between Pasqal and Aramco signals a meaningful step towards harnessing the power of quantum technology to solve complex problems across various sectors, including energy, finance, and logistics. As the global race for quantum supremacy intensifies, collaborations like this one are pivotal in pushing the boundaries of technological innovation, promising transformative advancements with far-reaching implications for industries and societies worldwide.
In an interview given to Digital Watch Observatory, André Xuereb, Ambassador for Digital Affairs at the Office of the Permanent Secretary, Ministry for Foreign and European Affairs and Trade of Malta, provided insights into the world of quantum computing and its implications for diplomacy. Quantum computing, as described by Xuereb, harnesses the laws of quantum mechanics to tackle complex problems by exploiting the simultaneous states of quantum bits or qubits, offering unprecedented computational power.
Xuereb emphasised the transformative potential of quantum computing, particularly in areas like drug discovery and cryptography. With its ability to handle intricate molecular structures efficiently, quantum computers could revolutionise drug design and accelerate the development of new medicines. Additionally, the inherent properties of quantum computing pose challenges to traditional encryption methods, potentially compromising data security.
Addressing the emergence of quantum diplomacy, Xuereb underscored the need for international collaboration and governance frameworks to navigate the complexities of quantum technologies. Initiatives like the Open Quantum Institute in Geneva, a global platform for quantum research and development, aim to facilitate equitable access to quantum resources, bridging the gap between countries with varying technological capabilities. Meanwhile, major tech players such as Microsoft, Amazon, Google, and others, with their substantial investments in quantum technologies, are not only driving technological advancements but also shaping the diplomatic landscape by influencing policy discussions and international cooperation in this field.
Looking ahead, Xuereb advised future quantum diplomats to prioritise discussions around the implications of quantum technologies on global security and communication. With the advent of general-purpose quantum computers, the risk of cyber threats, such as the ability to break current encryption methods, and the need for secure communication channels become paramount diplomatic concerns. However, Xuereb emphasised the importance of striking a balance between leveraging quantum advancements for societal benefits and mitigating potential risks associated with their misuse, such as the potential for quantum computers to crack current encryption methods, leading to widespread data breaches and security vulnerabilities.
Europe’s envisioned outcomes from this collaboration include enhancing HPC applications, fostering information sharing to tackle societal challenges, facilitating researcher exchange between India and the EU, and strengthening international cooperation in HPC development. While the EU’s document lacks specifics on the path forward, India’s recent call for proposals delineates a clear roadmap. The Ministry of Electronics and Information Technology seeks proposals to analyse climate change, bioinformatics, and natural hazards using HPC, alongside developing integrated early warning systems for multi-hazard scenarios. Proposals are expected to outline specific application optimisation plans, development timelines, and critical performance indicators demonstrating cooperative benefits. Accepted proposals allow access to HPC facilities in India and the EU.
India’s Supercomputing Mission has commissioned 28 supercomputers, while the EU’s High-Performance Computing Joint Undertaking operates nine machines with substantial computing power. Despite the progress, India and the EU still need to provide a timeframe for implementing approved proposals.
South Carolina has launched an ambitious initiative in quantum computing through a $15 million investment aiming to make its workforce quantum-ready.
Senator Dick Harpootlian, a vocal quantum advocate for the state, credited with the initiative, said, ‘If we can train a generation on the skills needed, they’re going to be sought after by every entity in the world at a great salary. We can be world-renowned for what we do here. The question is, are we going to be last in the country or are we going to be the first.’
This move is part of a global surge in quantum computing advancements and investments, signifying a worldwide race towards unlocking the potential of this transformative technology.
The Global Quantum Computing, building a quantum economy
According to the World Economic Forum report on quantum computing, public and private investments in the sector is totalling over $35.5 billion. This colossal investment emphasises the universal recognition of quantum computing’s potential to revolutionise industries, from cybersecurity to healthcare, finance and energy, warranting the WEF to talk about the ‘quantum economy’. South Carolina’s venture into quantum computing situates it within an international community committed to pioneering the next wave of technological innovation.
South Carolina’s Quantum Vision
Central to South Carolina’s quantum initiative is the emphasis on education and workforce development. The South Carolina Quantum Association prioritises preparing students for the increasing opportunities in quantum technologies, focusing on the critical role of human capital in sustaining technological leadership. The association will help connect students with resources to build the knowledge and skills to work on a quantum supercomputer.
According to the South Carolina Daily Gazette, the association plans to connect students and professors with companies seeking the unique advancements offered by quantum computing.
Its impact is anticipated across diverse sectors, promising enhancements in financial models, healthcare diagnostics, and sustainable energy solutions. South Carolina’s investment in quantum computing is expected to catalyze new industries and job opportunities, contributing significantly to the state’s economic growth.
