7 ways quantum computing is making a real-world impact

The number of VC-funded quantum startups in Europe is growing rapidly, many making bold claims that their technology could one day revolutionize the world economy. However, it is still difficult to answer one basic thing: what can a quantum computer actually do?

Currently, the quantum computing industry is still in what is known as the NISQ era – Noisy Intermediate Scale Quantum – in which the error rates and limited size of quantum processors significantly limit the power of quantum processors. power of quantum computers. A full quantum computer that can solve complex calculations that today’s supercomputers cannot manage is still many years away.

But the biggest industries – think finance or pharmaceuticals – are waiting for a large-scale, fault-tolerant quantum computer to arrive to find out how they can use it. Working with quantum companies, many have identified use cases that could benefit from quantum computing and developed algorithms to support them.

We have collected the most promising so far.

Quantum in the NISQ era

But first, it’s important to define how quantum is being applied in our current pre-disruption era. Quantum applications often involve combining the capabilities of classical and quantum computing into what are called hybrid algorithms – quantum algorithms in which part of the computational process is assigned to the processor. classical theory. In another approach, classical algorithms simulate the behavior of quantum systems on classical processors. These are called quantum-inspired algorithms.

For some use cases, these models have shown an advantage over purely classical methods — although not a significant one. But the value lies in the exploration process.

“The speed at which a business can adopt quantum depends heavily on testing these approaches today,” said Ekaterina Almasque, general partner at VC OpenOcean. “As quantum hardware achieves quantum advantage for a range of algorithms, these initial benefits will enable enterprises to leapfrog the competition with significant acceleration.”

Finance

Quantum technologies’ ability to perform many calculations at once means they are particularly well suited to problems that require simulating scenarios with many different variables or choosing an optimal route from multiple options. different. This is relevant to a wide range of use cases in the financial sector.

For example, Spanish quantum startup Multiverse Computing has partnered with Spanish bank BBVA to improve portfolio optimization. This is a well-known problem in the financial sector that requires taking into account the impact of many external factors on asset performance. The experiment showed that Multiverse’s quantum-inspired methods accelerated the computation process and could maximize profits while minimizing risk.

Another use case in finance is options pricing. Swiss startup TerraQuantum is partnering with financial services firm Cirdan Capital to use quantum-inspired algorithms to price a complex class of options known as “exotic options.” – a process often performed with calculations based on market simulations. The startup says initial results show a 75% increase in valuation speed compared to traditional methods.

Financial institutions are also looking at quantum computing to improve credit risk analysis. French startup PASQAL, together with Multiverse, is working on a quantum approach for French bank Crédit Agricole to better predict credit rating downgrades in borrowers. Classical methods exist for this problem but cannot handle the peculiarities of each individual situation. The bank expects quantum algorithms to improve process efficiency.

Medicine

Drug design requires identifying the right drug target – the protein, DNA or RNA in the human body that causes a certain disease – and then developing the molecule that will effectively and safely alter that target. most complete. With an almost limitless number of targets and molecules, finding the correct combination is an expensive, years-long process that is still largely based on trial and error.

Paris-based startup Qubit Pharmaceuticals uses hybrid quantum algorithms to create digital twins of drug molecules. These quantum-based models are capable of representing a large number of molecular properties, meaning they can simulate how these molecules interact with other components and can predict their behavior with high precision. This allows scientists to produce and study molecules digitally, instead of having to synthesize them. According to the company, the technology could eventually halve the time it takes to screen and select promising drugs, while dividing the required investment by 10.

Weather forecast

Weather forecasts, based on simulations based on data points taken from current weather conditions, are prone to error. More accurate weather predictions would require drawing an accurate picture of dozens of parameters and assessing how they interact – a model too large for a standard computer.

The ability of quantum computers to calculate many different parameters could be a game-changer. For example, German chemical company BASF is applying PASQAL’s technology to its weather modeling applications, with the aim of gaining a quantum advantage over classical methods in the near term.

Battery design

Improving battery design means developing a next generation of devices that are more durable, safer and less expensive. Similar to drug design, the key issue is determining the exact set of parameters that will lead to improved materials.

Finnish quantum startup IQM, which raised 128 million euros last year for climate-focused technology, says computers’ ability to accurately simulate chemical processes at the atomic level Quantum could enable the development of more efficient batteries. This is also the view of London-based Phasecraft, which develops quantum software to solve battery modeling challenges. According to Phasecraft, quantum computers can model battery materials exponentially faster than standard devices.

Smarter grid

The power grid is a vast network of sensors, communications infrastructure, data management systems and control mechanisms that need to be carefully coordinated and synchronized to deliver power to the network – a task complex and time-consuming task for which quantum computers are well-suited to perform. more effective.

Multiverse has partnered with Spanish utility Iberdrola to determine how quantum algorithms can optimize grid management. The project is focusing on different use cases that require various combinations to be evaluated. For example, the company is hoping that quantum algorithms can help determine optimal battery placement in the power grid.

Routing optimization

There are many factors that can affect the time it takes to get from point A to point B. Quantum algorithms are being developed to calculate how every route can be affected by every factor possible, to determine the most optimal route.

For example, French startup Quandela is working with multinational Thales to build a quantum algorithm that can optimize drone traffic. As the number of drones flying in urban areas increases, Thales predicts that classical computers will soon be unable to calculate all the parameters that impact trajectory. These range from mechanical flight restrictions of the drone to avoiding collisions with other drones, through calculating areas where they are prohibited and preserving battery life . Quantum algorithms can model all of these factors to determine the optimal route for each drone.

Make

Predicting and detecting defective products in production lines has significant economic value for manufacturing operations but is still difficult due to the large amount of data required to calculate such predictions. . Multiverse and Bosch are developing quantum algorithms to create digital twins that simulate factory lines to predict where the supply chain will fail and optimize when and where maintenance is needed. . Similarly, PASQAL and BMW have collaborated to use quantum algorithms that can simulate the formation of metal fragments, with the goal of identifying defects and ensuring that parts comply with specifications. art.