Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 347

Quantum computing would be a world-changing technological leap

Paul Benioff (born 1930) is a US physicist who in 1980 imagined the feats computing might achieve if it could harness quantum mechanics, where the word quantum refers to the tiniest amount of something needed to interact with something else – it’s basically the world of atoms and sub-atomic particles. Benioff’s imagination helped give rise to the phrase ‘quantum computing’, a term that heralds how the storage and manipulation of information at the sub-atomic level would usher in computing feats far beyond those of ‘classical’ computers.

Benioff was coincidently thinking about a vague concept being outlined by Russian mathematician Yuri Manin (born 1937). Since then, many others have promoted the potential of computing grounded in the concept of ‘superposition,’ when matter can be in different states at the same time.

Computational power of the qubit

Quantum computing is built on manipulating the superposition of the qubit, the name of its computational unit. Qubits are said to be in the ‘basis states’ of 0 or 1 at the same time when in superposition, whereas a computational unit in classical computing can only be 0 or 1. This qubit characteristic, on top of the ability of qubits to engage with qubits that are not physically connected (a characteristic known as entanglement), is what proponents say gives quantum computers the theoretical ability to calculate millions of possibilities in seconds, something far beyond the power of the transistors powering classical computers.

In 2012, US physicist and academic John Preskill (born 1953) devised the term ‘quantum supremacy’ to describe how quantum machines one day could make classical computers look archaic.

Research and developments

In October last year, a long-awaited world-first arrived. NASA and Google claimed to have attained quantum supremacy when they computed something not 'terribly useful' but did 'in seconds what would have taken even the largest and most advanced supercomputers thousands of years'.

The pair were modest that their computation on a 53-qubit machine meant they were only able 'to do one thing faster, not everything faster'. Yet IBM peers doused their claim as 'grandiosity' anyway, saying one of IBM’s supercomputers could have done the same task in 2½ days.

Nonetheless, most experts agreed the world had edged closer to the transformative technology. Hundreds of millions of dollars are pouring into research because advocates claim quantum computing promises simulations, searches, encryptions and optimisations that will lead to advancements in artificial intelligence, communications, encryption, finance, medicine, space exploration, even traffic flows.

Stumbling blocks

No one questions that practical quantum computing could change the world. But the hurdles are formidable to accomplish a leap built on finicky qubits in superposition, entanglement and ‘error correction’ - the term for overcoming ‘decoherence’ caused by derailed qubits that can’t be identified as out of whack when they are in superposition.

There’s no knowing when, or if, a concept reliant on mastering so many tricky variables will emerge. Small breakthroughs will occur, but the big breakthrough seems some way off.

To be clear, quantum computing is expected to be designed to work alongside classical computers, not replace them.

Quantum computers are large machines that require their qubits to be kept near absolute zero (-273C degrees) in temperature, so don’t expect them in your smartphones or laptops.

And rather than the large number of relatively simple calculations done by classical computers, quantum computers are only suited to a limited number of highly complex problems with many interacting variables.

Quantum computing would come with drawbacks too. The most flagged disadvantage are the warnings that a quantum computer could quickly crack the encryption that protects classical computers.

Another concern is that quantum computing’s potential would add to global tensions if one superpower gains an edge. The same applies in the commercial world if one company dominates.

Like artificial intelligence, quantum computing has had its ‘winters’ – when its challenges smothered the excitement, and research dropped off.

Dreaming of a new tech era

That points to the biggest qualification about today’s optimism around quantum computing: it might take a long time to get beyond today’s rudimentary levels where quantum machines are no more powerful than classical supercomputers and can’t do practical things.

But if quantum computing becomes mainstream, a new technological era would have started.

 

Michael Collins is an Investment Specialist at Magellan Asset Management, a sponsor of Firstlinks. This article is for general information purposes only, not investment advice. For the full version of this article and to view sources, go to: https://www.magellangroup.com.au/insights/.

For more articles and papers from Magellan, please click here.

 

1 Comments
Mace Ramsay
March 04, 2020

Look at what Archer is trying to do with Quantum computing

 

Leave a Comment:

RELATED ARTICLES

Policymakers fear cutting stimulus can lead to recession

Trump's US dollar assault is fuelling CBA's rise

Time to announce the X-factor for 2024

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Latest Updates

Economy

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Investing

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Property

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

Shares

ASX reporting season: Room for optimism

Despite mixed ASX results, the market has shown surprising resilience. With rate cuts ahead and economic conditions improving, investors should look beyond short-term noise and position for a potential cyclical upswing.

Property

A Bunnings play without the hefty price tag

BWT Trust has moved to bring management in house. Meanwhile, many of the properties it leases to Bunnings have been repriced to materially higher rents. This has removed two of the key 'snags' holding back the stock.

Investment strategies

Replacing bank hybrids with something similar

With APRA phasing out bank hybrids from 2027, investors must reassess these complex instruments. A synthetic hybrid strategy may offer similar returns but with greater control and clearer understanding of risks.

Shares

Nvidia's CEO is selling. Here's why Aussie investors should care

The magnitude of founder Jensen Huang’s selldown may seem small, but the signal is hard to ignore. When the person with the clearest insight into the company’s future starts cashing out, it’s worth asking why.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.