Quantum

Many fields of finance involve complex optimization problems under strict time constraints — problems where even marginal improvements could generate immense value for firms. Could quantum computing bring such improvements? Two recent IBM studies with major financial industry participants have explored potential use cases for quantum computing in finance.Continue Reading Quantum Computing: Quantum Applications in Finance

Before issuing a proposal for a Quantum Act, the European Commission has issued a call for evidence (“Call for Evidence”), asking for views from all stakeholders on the best approach to addressing structural problems that the Commission has identified in the areas of research, industrial capacity, and supply chain resilience. Industry stakeholders already grappling with multiple EU data and cyber-related laws, regulations, and assessment procedures may be most interested in the proposal to develop an EU-level monitoring and resilience framework for supply chain products needed to build quantum technologies. The Call for Evidence is open until 26 November 2025Continue Reading European Commission launches a call for evidence on the impact assessment for the forthcoming EU Quantum Act

Quantum computing is beginning to move from labs into commercial deployment, and one of the main ways companies will be able to access this technology is through Quantum-as-a-Service (QaaS) offerings.  Instead of companies investing in costly quantum hardware on-site, the QaaS model would allow them to tap into quantum capabilities via remote access services, much like they would with Software-as-a-Service (SaaS) arrangements. But while the delivery model may be akin to the SaaS model, quantum technology is still in its early stages and has unique hardware and infrastructure related challenges, as further described in a recent Covington blog post. Continue Reading Quantum-as-a-Service: Practical Considerations for Drafting and Negotiating Agreements

Quantum computing is largely in the research and developmental stage, but its commercial use is on the horizon. Due to the high cost and technical complexity of maintaining qubits, companies and individuals likely won’t own quantum computers themselves. Instead, access will mainly come through third-party platforms offering “Quantum-Computing-as-a-Service” (QCaaS) or “Quantum-as-a-Service” (QaaS).

Similar to the Software-as-a-Service (SaaS) or Infrastructure-as-a-Services (IaaS) models, QaaS would be a remote access service model with a subscription or “pay for what you use” fee structure. The key differentiating factor with QaaS will be the underlying quantum computing infrastructure and the quantum computing algorithm. Due to the similarities between SaaS, IaaS and QaaS models, terms in a typical SaaS or IaaS agreement would be a good starting point for QaaS contracts. However, due to the experimental and volatile nature of quantum computing technology (at least initially), lawyers and legal practitioners should also consider the risks that are unique to quantum computing when drafting or negotiating a QaaS agreement:Continue Reading Quantum Computing: Overview of Drafting Considerations for Quantum-as-a-Service Agreements

Quantum computing uses quantum mechanics principles to solve certain complex mathematical problems faster than classical computers.  Whilst classical computers use binary “bits” to perform calculations, quantum computers use quantum bits (“qubits”).  The value of a bit can only be zero or one, whereas a qubit can exist as zero, one, or a combination of both states (a phenomenon known as superposition) allowing quantum computers to solve certain problems exponentially faster than classical computers.

The potential applications of quantum computing are wide-ranging and industry-agnostic. For instance, they could be used to enhance the analysis of large, complex data sets, optimize supply-chain processes, and enhance artificial intelligence (“AI”) technologies and improve machine learning algorithms.

Given the potential applications, quantum computing could have a significant impact on companies in the life sciences sector, and more specifically could be used to improve:Continue Reading Quantum Computing and its Impact on the Life Science Industry

This update focuses on how growing quantum sector investment in the UK and US is leading to the development and commercialization of quantum computing technologies with the potential to revolutionize and disrupt key sectors.  This is a fast-growing area that is seeing significant levels of public and private investment activity.  We take a look at how approaches differ in the UK and US, and discuss how a concerted, international effort is needed both to realize the full potential of quantum technologies and to mitigate new risks that may arise as the technology matures.

Quantum Computing

Quantum computing uses quantum mechanics principles to solve certain complex mathematical problems faster than classical computers.  Whilst classical computers use binary “bits” to perform calculations, quantum computers use quantum bits (“qubits”).  The value of a bit can only be zero or one, whereas a qubit can exist as zero, one, or a combination of both states (a phenomenon known as superposition) allowing quantum computers to solve certain problems exponentially faster than classical computers. 

The applications of quantum technologies are wide-ranging and quantum computing has the potential to revolutionize many sectors, including life-sciences, climate and weather modelling, financial portfolio management and artificial intelligence (“AI”).  However, advances in quantum computing may also lead to some risks, the most significant being to data protection.  Hackers could exploit the ability of quantum computing to solve complex mathematical problems at high speeds to break currently used cryptography methods and access personal and sensitive data. 

This is a rapidly developing area that governments are only just turning their attention to.  Governments are focusing not just on “quantum-readiness” and countering the emerging threats that quantum computing will present in the hands of bad actors (the US, for instance, is planning the migration of sensitive data to post-quantum encryption), but also on ramping up investment and growth in quantum technologies. Continue Reading Quantum Computing: Developments in the UK and US

On December 5, 2023, the Spanish presidency of the Council of the EU issued a declaration to strengthen collaboration with Member States and the European Commission to develop a leading quantum technology ecosystem in Europe.

The declaration acknowledges the revolutionary potential of quantum computing, which uses quantum mechanics principles and quantum bits known as “qubits” to solve complex mathematical problems exponentially faster than classical computers.

The declaration was launched with eight Member State signatories (Denmark, Finland, Germany, Greece, Hungary, Italy, Slovenia, and Sweden), and invites other Member States to sign. By doing so, they agree to recognize the “strategic importance of quantum technologies for the scientific and industrial competitiveness of the EU” and commit to collaborating to make Europe the “’quantum valley’ of the world, the leading region globally for quantum excellence and innovation.”Continue Reading Quantum Computing: Action in the EU and Potential Impacts

In the final days of 2022, President Biden signed into law the “Quantum Computing Cybersecurity Preparedness Act”.  The Act recognizes that current encryption protocols used by the federal government might one day be vulnerable to compromise as a result of quantum computing, which could allow adversaries of the United States to steal sensitive encrypted data.  To address these concerns, the Act will require an inventory and prioritization of vulnerable information technology in use by federal agencies; a plan to migrate existing information technology systems; and reports to Congress on the progress of the migration and funding required. Continue Reading President Biden Signs Quantum Computing Cybersecurity Preparedness Act

On July 5, 2022, the Cybersecurity and Infrastructure Security Agency (“CISA”) and the National Institute of Standards and Technology (“NIST”) strongly recommended that organizations begin preparing to transition to a post-quantum cryptographic standard.  “The term ‘post-quantum cryptography’ is often referred to as ‘quantum-resistant cryptography’ and includes, ‘cryptographic algorithms or methods that are assessed not to be specifically vulnerable to attack by” a CRQC (cryptanalytically relevant quantum computer) or a classical computer.  NIST “has announced that a new post-quantum cryptographic standard will replace current public-key cryptography, which is vulnerable to quantum-based attacks.”  NIST does not intend to publish the new post-quantum cryptographic standard for commercial products until 2024 but urges companies to begin preparing now by following the Post-Quantum Cryptography Roadmap. Continue Reading CISA and NIST Urge Companies to Prepare to Transition to a Post-Quantum Cryptographic Standard