Quantum Computing Goes Global
February 18, 2022 (Investorideas.com Newswire) With a significant edge over traditional computer systems, quantum computing has the potential to transform industries like never before. From public investments to academic research and innovations from tech startups, a global push to unlock the potential of quantum computing is well underway. As of late, several quantum computing companies have emerged as frontrunners in the race to bring the next generation of computing to life.
The quantum edge
You may be wondering why, in an age of rapid technological advancements, regular computing is insufficient. This is because quantum computing is capable of a higher level of problem solving than even the strongest supercomputers.
Because traditional computers use binary signals (the “0s and 1s” of code) to solve problems, they struggle to perform calculations called combinatorics, which involve assessing different outcomes based on combinations.
Quantum computing, on the other hand, is based on weighing up the probabilities of different combinations of outcomes, meaning that quantum computers should be able to solve certain complex problems with greater ease than traditional computers. As a result, an enormous wave of worldwide research on the topic is underway.
To date, an array of world powers have placed great efforts into furthering their understanding of quantum computing and its applications. China, the United States, and Europe have each committed billions of dollars to public investments in quantum computing and continue to pledge future contributions. On the academic side, thousands of research papers on the subject have been published.
The innovators on the front lines, however, are those quantum computing companies that are transforming envisioned use cases into tangible, real-world applications.
Recent global computing trends have given rise to a major opportunity for quantum computing to advance cybersecurity. According to bodies such as the U.K.’s National Cyber Security Center, the COVID-19 pandemic was a major driver for an increase in cyber attacks.
With remote working becoming an increasingly popular trend, fewer workers enjoy the protection of secure, on-site security infrastructures provided by their offices. As a result, they are more susceptible to cyber threats. Quantum computing, together with AI and machine learning, should be able to repel larger waves of attacks as well as more sophisticated threats than is possible with existing solutions.
Quantum computing also has a great potential to transform pharmaceuticals. Because of its ability to better analyze combinations and predict outcomes, quantum computing could beat its traditional counterparts in analyzing the properties of medications and determining how to optimize their effectiveness.
As a result of this advantage, quantum computing should also be able to optimize manufacturing of other materials, for example, plastics and fuel cells.
Leading the pack
One of the leading quantum computing stocks that is bringing this technology to life is IonQ. Together with fellow computing company QC Ware and investment banking company Goldman Sachs, IonQ is focused on transforming the financial services industry.
The three companies recently released a research paper in which they revealed how IonQ’s quantum computers are powerful enough to run an advanced algorithm that has been formulated by Goldman Sachs and QC Ware. The algorithm, used to speed up an advanced problem solving technique called the Monte Carlo simulation, could help financial service providers to assess risk and simulate the prices of financial instruments at a faster rate than ever before.
Quantum computing is also impacting telecommunications. A research team from the University of Science and Technology of China in Hefei has developed an integrated quantum communication network. This network is able to support advanced online tasks that are performed by the likes of state and local banks, municipal power grids, and e-government websites.
Another quantum computing stock that is leading on multiple fronts is IBM. The company supplied a quantum computer to the Fraunhofer research institute in Germany. According to the German Chancellor Angela Merkel, this computer is expected to play a pivotal role in the nation’s understanding of how quantum computers operate, thereby fueling quantum computing research.
IBM also set up a quantum computing hub at the Kawasaki Business Incubation Center in Tokyo. A group of 12 Japanese companies, including Toyota, Hitachi, and Toshiba, will have the opportunity to make use of them. While Mitsubishi is expected to use them to run simulations as part of their chemical manufacturing process, Toyota may use the computers to analyze big data from car trips to advance autonomous driving development.
Accelerating into the future
As more research and development is carried out, the applications of quantum computing continue to multiply. If you happen to be an investor with a keen interest in emerging technologies, then an investment in some rising quantum computing stocks may be worth your attention.
Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Funds are not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. The value of stocks of information technology companies are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition. The Funds are considered to be non-diversified, so they may invest more of its assets in the securities of a single issuer or a smaller number of issuers. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.
The possible applications of quantum computing are only in the exploration stages, and the possibility of returns is uncertain and may not be realized in the near future.
The “BlueStar Quantum Computing and Machine Learning Index™”, “BQTUM™ Index” (collectively “Quantum Computing and Machine Learning Index"), is the exclusive property and a trademark of BlueStar Global Investors LLC d/b/a BlueStar Indexes® and has been licensed for use for certain purposes by Defiance ETFs LLC. Products based on the Quantum Computing and Machine Learning Index are not sponsored, endorsed, sold, or promoted by BlueStar Global Investors, LLC or BlueStar Indexes®, and BlueStar Global Investors, LLC and BlueStar Indexes® makes no representation regarding the advisability of trading in such product(s). It is not possible to invest directly in an index.
Total return represents changes to the NAV and accounts for distributions from the fund.
Median 30 Day Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.
Diversification does not ensure a profit nor protect against loss in a declining market.
Commissions may be charged on trades.
Go to defianceetfs.com/qtum to read more about QTUM including current performance and holdings information. Fund holdings are subject to change and should not be considered recommendations to buy or sell any securities.
QTUM is distributed by Foreside Fund Services, LLC.
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions.. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp. This article is a third party guest post published content and not the content of Investorideas.com . Learn more about posting your articles at http://www.investorideas.com/Advertise/