Bitcoin, Cryptocurrency And Blockchain News

Intel’s Quantum Computing Breakthrough Could Raise its Revenue Growth by 25%

Association with blockchain dates back to 2014


Intel’s Tangle Lake

The digitization era has been driving exponential demand for computing performance. Intel (INTC) has been actively researching into these new and specialized architectures too. At the 2018 Consumer Electronics Show in Las Vegas, the company announced major breakthroughs in the area of quantum computing. The company’s CEO, Brian Krzanich has informed of the successful design, fabrication, and delivery of a 49-qubit superconducting quantum test chip, code-named “Tangle Lake.”

“As more and more companies implement blockchain as a service into their businesses, that chip is going to be there in almost all of the servers in the cloud. And so, Intel could receive almost 25% growth in their revenues just from that one product alone,” said Eric Ervin, founder & CEO of Reality Shares, during an exclusive interview with Bitrazzi. His company’s Reality Shares NASDAQ NexGen Economy ETF (BLCN) has a 2.35% portfolio weight to Intel (INTC). The stock is the second-biggest holding of the BLCN portfolio. Intel (INTC) also commands a 3.16% portfolio weight in the Amplify Transformational Data Sharing ETF (BLOK), another blockchain offering in the ETF space.

Intel’s Association With Blockchain Dates Back to 2014

Intel’s association with blockchain research dates back to 2014 when the Intel Labs team began development of what was code-named Sawtooth Lake, a modular platform for building, deploying, and running distributed ledgers. Then in 2015, the company established a $50 million collaborative research partnership with QuTech; one that spans the entire quantum system from qubit devices to the hardware and software architecture required to control these devices as well as quantum applications. Currently, researchers at QuTech in the Netherlands and at Intel are racing to engineer qubit crunching computer chips and specialized systems that use quantum mechanics. According to Lieven Vandersypen, co-director of the Kavli Institute of Nanoscience and lead scientist at QuTech, “quantum computing can lead to extremely fast computing, very sensitive detectors and the ability to create unbreakable encryption to protect important digital information.”

The merits of quantum computing make it very well-suited to artificial intelligence (AI) and cryptography. Cryptography involves factoring large numbers into prime numbers, a computation in which quantum computers excel.

Threat to the Existing Blockchain – two Solutions

There’s also a line of thought that states that quantum computing presents a real threat to the existing blockchain technology, which relies on public key cryptography to maintain the security of the ledger. For instance, Bitcoin relies on the work of “miners” to solve certain complex mathematical problems to verify transactions. With quantum computing, this task would be upended by entities with quantum computing platforms, thereby posing a threat to the established Bitcoin infrastructure. However, there are two possible solutions to this:

  1. Blockchain adapting to this new technological capability
  2. Developing quantum-resistant cryptography: systems that are secure against both quantum and classical computers, and can interoperate with existing communications protocols and networks. For example, work on The Quantum-Resistant Ledger (QRL) is already underway.