Wednesday, September 7, 2016

Quantum Computers Are Coming. The World Might Not Be Ready.

Quantum Computers Are Coming. The World Might Not Be Ready.

GETTING WEIRDER.
PHOTOGRAPHER: KRISZTIAN BOCSI/BLOOMBERG
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Quantum mechanics, Carl Sagan once observed, is so strange that "common sense is almost useless in approaching it." Scientists still don't understand exactly why matter behaves as it does at the quantum level. Yet they're getting better at exploiting its peculiar dynamics -- in ways that may soon upend the technology business.
One of the most interesting applications is in computing. In theory, quantum computers could take advantage of odd subatomic interactions to solve certain problems far faster than a conventional machine could. Although a full-scale quantum computer is still years off, scientists have lately made a lot of progress on thematerialsdesigns and methods needed to make one.
And that could have some striking benefits. Quantum computers could simulate how atoms and molecules behave, to the greatadvantage of chemists and drug designers. They could solveoptimization problems -- say, how to efficiently route airplane traffic -- far faster than current technology can. They could speed advances in artificial intelligence, improve sensors, and lead to the design of stronger and lighter industrial materials.
Quantum Leap
Competition in quantum technologies is increasingly global.
Source: DG Connect, European Commission
Unsurprisingly, then, investment in the field is surging. IBM,Microsoft and Google are all building quantum research labs. Startups are gearing up. Banks are very interested indeed. Governments see applications for space explorationmedical research and intelligence-gathering. America's National Security Agency, in fact, has been quietly trying to build a quantum computer for years, in the hope that it would make an unstoppable code-breaker.
And that suggests a looming problem. To simplify a bit, the cryptographic tools commonly used to protect information online rely on very hard math problems, such as factoring large integers, that normal computers can't solve in a reasonable time frame. Quantum computers, though, could probably make quick work of such equations.
As a result, they could undermine the security of everything from mobile phones to e-commerce to cloud computing. Within two decades, by some estimates, quantum computers may be able to break all public-key encryption now in use. "The impact on the world economy," says the nonprofit Cloud Security Alliance, "could be devastating."
As dire as that sounds, panic isn't in order just yet. Researchers are already working on "quantum-resistant" encryption. Some companies claim to have made significant progress in the field. Google, among others, is working on a new form of security for its browser that might rebuff a quantum algorithm. Although a lot more research is needed, standards agencies around the world arewell aware of the problem.
Weird Science
Research on quantum computing is picking up.
Sources: Google Scholar; World Intellectual Property Organization
Yet some vigilance is still advisable.
Businesses, in particular, should pay attention. Many have files that must be stored for years, for legal or commercial reasons. Butwoefully few have a long-term strategy for protecting them. That's especially worrisome because, without precautions, sensitive records -- medical files, financial data, trade secrets -- that are stored using today's encryption could potentially be exposed by quantum computers.
Governments could also help. Quantum computing requires competence in physics, computer science and engineering, and that makes it hard to find qualified workers. Public investment in basic quantum-science research would help build a skilled workforce, boost technical know-how and generally lay the groundwork for a promising new field. It could also speed the development of stronger cryptography. More cooperation between Silicon Valley and the government, not on notable display recently, could be invaluable in this regard.
In short, common sense isn't useless in approaching quantum computers; it may be the best way to prepare for an era of thrilling strangeness.
To contact the senior editor responsible for Bloomberg View’s editorials: David Shipley at davidshipley@bloomberg.net.

U.S. Firms Take Legal Action Against Hanjin


U.S. Firms Take Legal Action Against Hanjin

Stern View Of A Hanjin Containership
By Joyce Lee and Keith Wallis (Reuters) Roughly half of Hanjin Shipping Co‘s container vessels have been blocked from ports since the South Korean firm’s collapse, putting manufacturers and their customers increasingly on edge about the fate of cargo and spikes in freight costs.

The Box, Book by Marc Levinson
Related Book: Related Book: The Box, Book by Marc Levinson

Woes for world’s seventh-largest container shipper have only deepened since its banks withdrew support and it filed for court receivership this week. One vessel has also been seized by a creditor in Singapore while firms in the U.S. have launched legal action against Hanjin to seize vessels and other assets over unpaid bills.
The potential for cargo to be stranded, perhaps indefinitely, is unnerving for many – particularly as industry insiders and analysts believe that Hanjin has little chance of being rehabilitated and its assets will eventually be liquidated.
“The biggest problem is what is going to happen to cargos at sea. We are just praying that our cargos are not seized,” said Ra Kyung-moon, executive vice president at Forman Shipping, a freight-forwarding firm in Seoul.
Freight-forwarding firms, which organize shipments, may be held liable for customer cargo that doesn’t arrive and are also worried about the recovery of funds paid to Hanjin in advance for services promised.
Some manufacturers are drawing up contingency plans while the U.S. Retail Industry Leaders Association has called on Department of Commerce and the Federal Maritime Commission to take action to minimize disruption.
A Hanjin spokeswoman told Reuters that 44 of its 98 container ships had been denied access to ports including Shanghai, Sydney, Hamburg, and Long Beach, California.
These include instances where lashing firms have refused service, or where port authorities have blocked entry.
But service for Hanjin ships resumed at South Korea’s main ports of Busan and Incheon on Friday after the government said port authorities would guarantee payments for service providers.
On Thursday, a Korean trade group said about 10 Hanjin ships were effectively seized in China. Hanjin said on Friday that number was incorrect.

SHIPPING COSTS SOAR

Freight rates have also surged. Hanjin’s collapse has come during the shipping industry’s busiest season ahead of the year-end holidays.
“The cost of shipping is now jumping through the roof and carriers are filing requests for a full increase in rates from Sept. 1,” said Paul Tsui, managing director of the Janel Group in Hong Kong, a freight forwarding and logistics firm.
He added that air freight volumes would probably rise to replace urgent orders stranded in ports or at sea.
Hanjin accounts for 7.8 percent of trans-Pacific trade volume for the U.S. market and has a global client base. Of 8,281 owners of goods to be transported as of late August, 847 were South Korean firms, according to government data.
This week, a judge in California ordered the arrest of the Hanjin Montevideo container ship in Long Beach over unpaid fuel bills totaling $488,750 owed to World Fuel Services, according to court documents seen by Reuters.
Lawyers acting for two other firms, Hastay Marine and Montemp Marine, applied on Aug. 31 to a court in California to have Hanjin’s assets in the U.S. including cash and property totaling more than $3 million seized to pay outstanding rental payments on two Hanjin ships, court documents showed.
Adding insult to injury, Hanjin has also been suspended from the CKYHE shipping alliance, which includes China COSCO, and Evergreen Marine Corp Taiwan Ltd.
A South Korean court has ordered the start of rehabilitation proceedings and set a Nov. 25 deadline for the carrier to submit a plan, appointing Hanjin Shipping CEO Suk Tai-soo as trustee.
Hanjin’s shares, suspended since plunging 24 percent on Tuesday, will resume trading on Sept. 5, the stock exchange said.
(Additional reporting by Hyunjoo Jin, Se Young Lee and Yun Hwan Chae in SEOUL; Editing by Tony Munroe and Edwina Gibbs)
© 2016 Thomson Reuters. All rights reserved.

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