Investing in Quantum Computing: The Next Computer Revolution

Not that long ago, if you wanted to get from point “A” to point "B,” you needed to use a physical map or follow specific written directions. Now, however, all you need to do is to program where you want to go into your GPS (global positioning system) and the kind voice will instruct you every step of the way.

Similarly, if you needed a brain scan, chances are you would be subjected to intrusive X-rays or radiation. Now, however, doctors can use non-intrusive MRIs (magnetic resonance imaging) to get a clear picture of your brain’s cells — all without exposing you to radiation of any sort.

What has catapulted these technological advances in the areas of medicine and computer programming?

Quantum computing.

Quantum computing is the next greatest technology, and investing in quantum computing is the next computer revolution.

Here’s why.

Quantum Computing: Catapulting Us into New Computer Territories

Quantum computing is a new form of computer technology that uses the laws of quantum mechanics to solve problems that are far too complex for ordinary computers to handle. Quantum mechanics is the intersection of matter and energy at the subatomic level. Using quantum physics, quantum computers can solve multidimensional and difficult problems that are time-consuming for traditional computers to solve — and they can do it in a matter of a few steps.

These “better-than-supercomputers” achieve tremendous speeds of calculation by using quantum algorithms. Quantum computers are expected to “open new frontiers of mathematics,” completely change our idea of computing, and have a “more profound” impact on technology than any other technology we have yet seen.

Intel, I.B.M., Microsoft, Amazon, and the Chinese government are all investing time and money in researching and building quantum computers. 

How it Works

The core difference between quantum computing and ordinary computing is that a quantum computer uses quantum bits (known as “qubits”). Ordinary computers use binary codes (0s and 1s) and bits to do their work. Bits for an ordinary computer can be a “0” or a “1,” but they cannot be both.

On the other hand, the qubits used by quantum computers can use a value of “0” or “1,” or they can use both values simultaneously. This makes qubits able to outperform ordinary computers in solving complex problems. 

In addition, quantum computers use the four key principles of quantum physics:

1. Superposition

2. Interference

3. Entanglement

4. Measurement.

Qubits can provide more processing power than bits because of, among other things, superposition and entanglement.

Quantum computers are not expected to replace “supercomputers,” however, they are expected to outperform ordinary computers in the optimization of problems and in “simulating the behavior of matter down to the molecular level.” 

So, how well are quantum computers working so far?

The answer is, that they aren’t. 

While quantum computers do indeed exist, and experts are excited about their prospects (making them an intriguing investment option), quantum computers still need to be out of the experimentation and research phases. 

At The Intersection of Intellectual Property and Quantum Computing 

Although quantum computers are still in the research phase, experts believe that their final implementation is just a matter of time. As one of the fastest-growing technologies, quantum computing is projected to become a trillion-dollar industry. 

For potential investors, computer developers, issuers looking to find accredited investors, or accredited investors with an investor status certificate, it is critical to prepare now, because this new technology is expected to be operational sooner than you might think. 

So we turn to the first consideration — how does one protect one’s ownership interests in quantum computing? 

The best answer, while perhaps not a perfect fit, seems to be our intellectual property (IP) laws.

Intellectual property (IP) is a broad category of legal rights that essentially protect an individual’s creations. This can be anything created by one’s intellect, such as:

• inventions

• designs

• artwork

• music

• logos

• computer programs,

• and more.

Unlike other property rights, intellectual property applies to intangible property. Intellectual property law protects creations that are the result of the application of a person’s imagination and intellect.

In the United States, the main categories of intellectual property law that protect creations and inventions are:

1. Patents

2. Copyrights

3. Trademarks, and 

4. Trade secrets.

Each one of these categories has unique requirements, rules, and restrictions, and more than one category can apply to an invention or creation.  

For example, since computers are made up of many different parts, several different IP categories can be applied to them. For example:

• The hardware can be patented.

• The design and shape can be protected by trademark, and

• The computer program and manuals can be protected by copyright.

In addition, quantum algorithms can be copyrighted, and their technical effects patented. 

While this may sound simple enough, it isn’t. 

As we have seen with other cutting-edge technologies, our laws don’t exactly fit quantum computing. 

Legal scholars note that our current intellectual property laws simply are not written to address quantum computing. Therefore, it is difficult to know exactly which intellectual property protections apply to quantum computing, and how. 

Emerging Legal Issues and Challenges in Quantum Computing 

The race is on to establish a reliable legal framework to regulate quantum computing before it gets here. 

Even though quantum computers are not working yet, both computer experts and legal experts agree that it’s just a matter of time before they will be up and running. Everyone also agrees that when quantum technology is finally functional, it will present some major risks to online security. Accordingly, there is no time for governments, businesses, and agencies to waste before preparing to protect themselves against the inevitable and formidable threats that quantum computing technology poses.    

The United States has invested considerable funds in research designed to advance quantum technology. It is the third largest government backer of quantum technology in the world. In 2018, the U.S. initiated the National Quantum Initiative Act — establishing a federal program to “accelerate quantum research.” In 2021, the government authorized funding and guidance for quantum internet projects through the implementation of the Quantum Network Infrastructure and Workforce Development Act.

In anticipation of some of the serious legal issues and risks that quantum computing is expected to generate, the U.S. has begun developing a legal framework from which quantum technology can be regulated. In 2022, President Biden signed the Quantum Computing Cybersecurity Preparedness Act, into law. The law recognizes the potential threats quantum computers might one day have on our national security and requires that the agencies’ data cryptography be examined to prepare for a time when quantum computing could decrypt that data.

Quantum computing, while innovative and exciting, poses some significant challenges and risks.

Because they can process vast amounts of data quickly and can solve intractable problems that ordinary computers can’t, once fully developed, quantum technology could decrypt current encryption algorithms that protect sensitive data. This threatens national security, individual health care information, financial and banking information, and more. If quantum computers can decrypt our current encryption algorithms, virtually all data on the internet would be compromised — rendering cybersecurity completely obsolete. 

Another potential risk described as the “catch now, exploit later” (or “harvest now, decrypt later”) anticipates hackers getting sensitive data — like medical records or credit card data — now, and holding onto it until quantum computers make it possible to decrypt the encrypted information.

Further, laws and regulations that currently serve as the standard for cybersecurity and privacy protection (i.e., “reasonable security”) are likely to change rapidly as quantum technology advances. Businesses must therefore stay abreast of all developments in this area to protect themselves and their customers by ensuring that at all times they are using the most robust protections available against quantum computing. Laws establishing new levels of encryption standards that can resist and repel quantum computing must be developed.

In addition to intellectual property issues, national security issues, and the threat of the disappearance of cybersecurity as we know it, as with any new technology, quantum computing will generate litigation in other areas related to this new technology. Increased litigation is expected to encompass legal issues such as:

• ethics

• bias

• contract disputes

• intellectual property disputes

• cybersecurity issues

• shareholder litigation

• securities issues, and

• consumer negligence class actions.

Preparing now to address these concerns is vital for governments, businesses, and investors.

Thinking of Investing in Quantum Computing?

If you are considering investing in quantum computing, you’re not alone. Investors are showing great confidence in this new technology. According to reports, almost $30 billion is being invested worldwide in quantum research and development. Others indicate that financial services is one of the four industries that stand to profit significantly from quantum computer technology — making it an attractive investment.

While most funding in this field comes from the public sector, private investments are increasing. Reports indicate that the most promising use of quantum computing in finance will be in the portfolio and risk management areas.

The burgeoning field of quantum computing has its risks and challenges, certainly, but it also has tremendous growth opportunities.

At VerifyInvestor.com we understand the regulatory challenges facing issuers and investors alike. That’s why we offer world-class accredited investor verification services. Our services are fast, efficient, cost-effective, confidential, and reliable. We help companies fully and easily comply with their legal obligations to verify investors as accredited investors.