Good piece from Penny Crossman. She describes how Goldman Sachs and QC Ware are squeezing out every possible angle to take the lead in quantum FinTech. Recommend reading from the source. Link is below. Because Quantum is Coming. Qubit
Goldman Sachs moves a step closer to quantum computing
+ They’re taking advantage of something called quantum amplitude estimation, a quantum computing technique that can be used to obtain a quadratic speedup over classical algorithms.
+ “We’ve been looking at it because it’s a really useful subroutine in things like derivative pricing or risk calculations, or generically to do Monte Carlo simulations faster, which is the class of algorithm problems that we want to solve,” Zeng said. Zeng’s team collaborated with the quantum software and engineering company QC Ware to build a special application for solving time-consuming mathematical problems.
Goldman Sachs has been working with technology companies to rewrite algorithms so they can run on quantum computers expected to roll out over the next two to four years.
+ “One way in practice that people try to figure out what the price of a derivative should be is they model a bunch of scenarios for how the assets could move based on a stochastic model,” Zeng said. “How many of those scenarios do you need to calculate in order to get to an accurate answer? Obviously, the more scenarios you calculate, the more accurate an answer you’re going to get about what the price of the derivative should be. We would like to be able to do that faster and with less compute resources, as would any big financial services firm that does this kind of calculation on an extremely large scale.”
+ “We’ve developed an algorithmic approach and software that allows those problems to be run on quantum computers,” said Matt Johnson, CEO of QC Ware, which is based in Palo Alto, California. “The only gotcha is that today’s quantum computers aren’t powerful enough to do this work. However, in the near term they will be.” QC Ware has developed algorithms that can exploit the near-term quantum computers that will be available in the next two to four years, he said.
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