Investigating Essential Technologies and Applications of Quantum Computing in Finance

DOI

10.2991/978-94-6463-300-9_34How to use a DOI?

Keywords

Quantum computing; Blockchain; Quantum machine learning; Cryptography; Finance

Abstract

Quantum computing, even though it is still in its early stages, holds the potential to revolutionize the finance sector by providing efficient solutions to complex problems. This potential is evident in the direct correlation between key financial issues and the principles of quantum mechanics, such as the mathematical connection between the Black-Scholes-Merton formula and the Schrödinger equation. Nevertheless, quantum computing also brings about significant risks, notably threats to cybersecurity that could endanger systems like Blockchain. Financial institutions in the Netherlands, along with others worldwide, are beginning to contemplate these implications, making efforts to forecast the progress of quantum computing in order to adapt their operational strategies accordingly. This paper delves into the impact of quantum computing on finance, from the advantages in portfolio optimization, arbitrage, credit scoring, and fraud detection, to the challenges concerning the security of payment systems and the integrity of Blockchain. Additionally, potential solutions to these challenges are explored. The evolution of quantum computing necessitates a shift in focus towards less popular yet highly desirable applications that exhibit inherent complexity. These are the areas where quantum computers are anticipated to make a significant impact.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sijie Guo
PY  - 2023
DA  - 2023/11/27
TI  - Investigating Essential Technologies and Applications of Quantum Computing in Finance
BT  - Proceedings of the 2023 International Conference on Image, Algorithms and Artificial Intelligence (ICIAAI 2023)
PB  - Atlantis Press
SP  - 329
EP  - 338
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-300-9_34
DO  - 10.2991/978-94-6463-300-9_34
ID  - Guo2023
ER  -