Quantum ALGORITHMs - A possibly better estimator of FINANCIAL RISK.

📷Quantum bit/Spencer Lowell

The challenges faced by the finance sector are becoming more complex, riskier and dangerously unpredictable (2008 financial crisis). Quantum computing is one way to possibly address these problems. It could enable financial institutions to exponentially increase the speed of transactions. With this in mind, researchers (Feb 2019) - Woener, Egger) at IBMQ  have demonstrated a quantum algorithm that estimates risk, e.g. for portfolios of financial assets, resulting in a quadratic speed-up compared to classical Monte Carlo methods. This is useful ongoing research with significant future implications once the hardware (e.g more qubits) is commercially ready with many betting that could happen soon. Quantum computing is technology based on the principles of quantum theory, which explains the nature of energy and matter on the atomic and subatomic level. It relies on the existence of mind-bending quantum-mechanical phenomena, such as superposition and entanglement.