Quantum computing has always seemed to be a very advanced technology. A quantum future is not far off, however, with companies like IBM Corp. (NYSE: IBM), Alphabet, Inc. (NASDAQ: GOOGL), and IonQ, Inc. (NYSE: DMYI) all promise to build groundbreaking quantum computers within the next decade.
Quantum computing and cybersecurity
Quantum computers can solve problems exponentially faster than traditional computers. They do this by taking advantage of “superposition,” which allows a quantum bit (qubit) to exist simultaneously in multiple states (zero and one), while bits in a traditional computer must be in one (zero or one). ).
Overlay allows quantum computers to test multiple results in parallel, while a traditional computer must test each result separately. As such, quantum computing poses imminent security risks to traditional public and private key infrastructures (PKIs).
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Arqit Ltd. went public in May via SPAC via Centricus Acquisition Corp. (NASDAQ: CENH).
The company aims to fix the current encryption issues, Equity Development analyst Mike Jeremy said in a July 18 memo.
Quantum computing poses minimal risk to PKI, but PKI is difficult to scale and still not incredibly secure, the analyst said. The recent “frequency and magnitude of information breaches, hacking events, and cybersecurity failures” expose the vulnerabilities PKI poses to entities seeking to protect numerous cloud-based operations across vast data stores, Jeremy said.
Arqit has developed a quantum encryption system that aims to replace ICP, the analyst said. The system is proven by the laws of physics to be “clearly unbreakable,” he said.
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Randomization of quantum keys is at the heart of this “holy grail” of encryption because it involves “the absence of any mathematical process” that a computer could use to reverse engineer keys, Jeremy said. Even a quantum computer would take “millions of years” to decipher a key, the analyst said.
In addition, devices using Arqit’s technology can randomly “borrow” keys from up to 2 billion possibilities, he said. These keys only exist when needed, are deleted when used, and can be refreshed endlessly across a large group of devices, demonstrating the security of randomness, Jeremy said.
The company has bundled its technology stack into a platform-as-a-service (PaaS) offering dubbed QuantumCloud for commercial use, locking in $ 130 million in contracts in telecommunications, defense, automation and financial services, has said the analyst. QuantumCloud deployment is scheduled for the second half of 2021.
Arqit also announced the formation of its international group Arqit Federated Quantum System at the G7 meeting in June to provide its quantum encryption services to governments and associated entities, he said.
The FQS deals are expected to generate $ 25 million in annual revenue each, with Arqit already in talks with five countries, the analyst said.
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