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Bitcoin Price Touched $11,400, Altcoin Season Over? – CryptoPotato

Its safe to say that Bitcoins dull days are behind the asset as it continued its bullish run to reach $11,000. Despite gaining against the dollar, most altcoins are trailing compared to Bitcoin, questioning the state of the altseason.

After finally breaking above $10,000, the question remained if BTC can maintain its price surge, especially when it came face to face with the significant resistance at $10,500. A daily close above would have validated the bull-run and indicate that Bitcoin has a new highest price level in 2020.

Just a few hours ago, the primary cryptocurrency indeed faced the $10,500, but shot pass by it in a matter of minutes. Bitcoin kept its decisive move going and reached $11,400, where it got rejected and retraced slightly to $10,945. This represents a 20% increase in a week for BTC.

Despite the excitement and the impressive increase, though, it remains to be seen if Bitcoin will sustain its performance, or it will drop to $9,600 to close a CME gap, as it has done multiple times in the past.

According to popular cryptocurrency analyst Mati Greenspan, this breakout above $10,500 could likely be the ignition to a much bigger Bitcoin bull-run.

The narrative has now shifted to match whats happening in the rest of the economy, and investors will likely begin looking specially for hard money assets and digital scarcity, Greenspan told CryptoPotato.

His comments come at a time when gold also surged to a fresh all-time high and continued forwards to nearly $1,980 per ounce. However, it got rejected and retraced to $1,937/oz.

Greenspan also touched upon the ongoing altcoin season. However, his opinion was quite negative, saying that in regards to altcoins the alt season is over.

Before BTCs breakout a few days ago, most alternative coins were pumping hard and managed to reduce Bitcoins dominance over the market to a yearly low of 60.4%. However, the largest cryptocurrency reacted swiftly and has increased its dominance now to 62.9%.

Although some large-cap and lower-cap alts have charted gains against the dollar in the past 24 hours, their performance against Bitcoin is in the red. From the top 10 coins, only Bitcoin Cash, Bitcoin SV, and Litecoin have slightly increased their value against BTC.

On the contrary, Ethereum, Cardano, Chainlink, Tezos, and Stellar are between 6% and 8% down compared to the primary cryptocurrency.

Other significant losers against Bitcoin include Celsius (-12%), ABBC Coin (-12.21%), Elrond (-13.6%), Augur (-14.7%), Flexacoin (-20.44%), and Ampleforth (-26.5%).

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Bitcoin Struggles At $11,000: Altcoins Starting To Regain Momentum? – CryptoPotato

Bitcoin attempted another bullish movement yesterday, but it got rejected when it approached the next resistance line. The majority of the altcoin market is retracing slightly today, following a few days of gains.

The S&P 500, Dow Jones, and Nasdaq marked increases yesterday, following an announcement from the Fed pledging to keep the interest rates unchanged near zero.

The primary cryptocurrency has been on a roll ever since it broke out of its $9,000 $9,300 range last week. In a few consecutive days, BTC shot up to about $11,000 and yesterday attempted to conquer the next resistance at $11,390. However, to no avail, as it got rejected before having a real chance to face it. At the time of this writing, Bitcoin hovers again at about $11,000.

Should BTC successfully break above $11,390, it has to face a key weekly resistance at $11,490 before coming up against the psychological $12,000 level. In contrast, $10,800 and $10,400 are Bitcoins line of defense in case the asset heads downwards.

Ethereum, Ripple, and Bitcoin SV have kept steady over the past 24 hours with insignificant changes. Losses are visible from Cardano (-2.7%) and Litecoin (-2.5%) after yesterdays gains. Chainlink (-2%), Tezos (-4.2%), Stellar (-2.3%), Monero (-2.2%), and Tron (-3.5%) are also in the red today.

However, Ampleforth continues to showcase double-digit price losses. AMPL has tanked by nearly 60%, and its even below $1. This may cause issues for investors as its protocol will start deflating the existing tokens in circulation to stabilize the price at around $1.

Travala.coms AVA coin is the most significant gainer with a 21% increase, while THORChain and Aave follow by 14.16% and 12.14%, respectively.

The US Federal Reserve left benchmark interest rates unchanged near zero. Fed Chair Jerome Powell doubled-down on his assurance that the US government will provide all the necessary support to Americans until the threat of the novel COVID-19 to the US economy passes.

These events had a positive effect on the most prominent Wall Street stock market indexes. During yesterdays trading session, the Dow Jones closed with an increase of 0.60%, while the S&P 500 and the Nasdaq Composite gained over 1%.

Despite the short-term beneficial effects on the markets, prominent economists continue to warn that such actions could ultimately tank the system.

I think they are playing with fire. If Congress was counting on the fact that the economy was going to reopen, then they wouldnt need to do another package, clearly, that Plan A is gone. commented senior portfolio manager at TCW Diane Jaffee, referring to the massive stimulus packages initiated by the government.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Litecoin spikes 10% to lead top altcoin gains today | CoinJournal.net – CoinJournal

Litecoin pushed more than 10% into the green following Bitcoins run to $11k

Bitcoins latest spike in trading price is having a positive impact on that of Litecoin, the altcoin that is often dubbed silver to the crypto kings gold.

While Ethereum has struggled in the last few hours after trailing Bitcoins march to $10k, Litecoin has broken out of its tight channel to post a remarkable upside over the past 48 hours.

ETH/USD has soared by more than 30% over the past week to trade above $330. However, increased selling pressure during the Asian trading session has pushed its price about 3% down on the day to currently see it exchange hands at $315.

The price of Ripples XRP token is up by 2.3% in the past 24 hours, while BCH/USD and BSV/USD have both spiked by nearly 6%.

Litecoin is nonetheless seeing the most gains, with the LTC/USD pair spiking more than 10% in the past 24 hours.

As of writing, the pair is trading at $53.50, so bulls are likely to aim at consolidating support above $50 to help propel the price higher should Bitcoin explode above $12,000.

Similar to Bitcoin, the price of Litecoin has also just broken out of a tight channel that had capped prices for the past several weeks. The surge above $50 is the first time the cryptocurrency has traded above the level since March 8, 2020, and represents LTC/USDs best period since the run from lows of $40 to highs of $49 at the end of April.

LTC/USD on the upside will very much follow the pattern of higher highs and higher lows that Bitcoin posts. Key price levels are the resistances at $57.107, $61.208, and $66.38. Above that, Litecoin bulls face minimal resistance and the price could hit February highs of $83.

The technical picture is strengthened by the MACD indicator that is well-placed above the Signal line. The Parabolic SAR on the daily chart is also bullish for the altcoin, with the dotted markers giving it room to expand as they cut well below the price candles.

However, a run to higher price levels depends on whether bulls will hold gains above $50. If theres a bearish breakdown, bulls may rely on major support at $48.179 and $43.00. These levels are critical to keeping levels where they are to avoid a scenario where a rejection sends prices back below a long term descending trendline.

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As Bitcoin tops $11,000 level, investor interest in India on the rise – Livemint

Bitcoin prices surged past the $11,000 level on Tuesday, marking a steep recovery from its recent lows of around $5,000 in March 2020. The cryptocurrency was trading at around $10,972 at the time of writing this report on Wednesday.

The covid-19 crisis had battered financial assets across the world in March, including cryptocurrencies. Along with the rebound in prices, interest in cryptocurrency in India has also staged a recovery, say experts. A Supreme Court of India ruling in March, striking down the Reserve Bank of Indias (RBI) ban on crypto payments imposed in 2018 has also acted as a tailwind for the cryptocurrency investment.

There is a huge positive sentiment around Bitcoin right now. With its prices going up, a lot of dormant holders are coming back and traders are trading more to book profits. Bitcoins price rally is also causing other altcoin prices to increase. As a result, were seeing a big jump in our trading volume. It will be exciting to see where Bitcoin price lands next," said Nischal Shetty, founder and CEO, WazirX, a cryptocurrency exchange in India.

Altcoins are other cryptocurrencies that were launched after the success of Bitcoin.

Sumit Gupta, co-founder and CEO, CoinDCX, another cryptocurrency exchange, outlined two reasons for the rebound. The surge in bitcoin prices comes amid a rush for safe-haven assets that are considered alternatives to cash and stocks. It has been fueled by the covid-19 pandemic that has driven the global economy into a recession," he said. Theres also the decreased supply of available bitcoin, attributed to the halving of coins in circulation that happened earlier this year," he added.

An inbuilt feature of bitcoin mining is the halving of rewards given to bitcoin miners for mining the cryptocurrency periodically (usually every four years). This tends to cut in half, the new bitcoin that is released into circulation.

Ajeet Khurana, member, Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India (IAMAI) and former CEO of Zebpay focused more on the participants in the crypto market to explain the surge in bitcoin prices.

The common investor in any asset class is primarily driven by asset price inflation. The trader in an asset class is driven by volatility, and expects to make money on price movements in both directions. For both of these, bitcoin has been a delight in the recent past," he explained.

Khurana also believes that crypto investors do not invest in other asset classes and hence the rise in bitcoin prices could fuel a surge in crypto market participants, both investors and traders. In other words, the cult-like following of cryptocurrency gets strengthened when there is a rally in its prices.

Despite the Supreme Court ruling on RBIs payments ban, cryptocurrency still does not have a regulatory framework in India. Moreover, a draft government bill may criminalize the mere possession of cryptocurrency in its current form as we reported here.

Investors should take this into account while evaluating the cryptocurrency market.

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Long Gold, and Long Cryptos – InvestorPlace

Gold sets a new all-time-high why its gains will keep coming bitcoin and altcoins are also poised to jump get some of your wealth outside the dollar

Last night, gold exploded through its prior all-time high of $1,920.

The precious metal reached as high as $1,944 before slightly pulling back.

As I write, its trading at $1,938.

About three weeks ago, we wrote the following in theDigest:

within the next three months, (gold) will set a new all-time high.

the media will be filled with headlines about the new record the start of a new, gold bull market various gold mining stocks enjoying double- and triple-digit gains

As the broader population slowly becomes aware of all this, well see a new host of investors piling into gold

this flood of new dollars will drive prices higher. Higher prices will attract more investors. More investors will drive the price higher the trend will surge

With that in mind, note the current headlines:

***We believe that, while remarkable, $1,920 is just a milestone within a far bigger move for gold

Thats because the fundamental reasons why the precious metal is climbing arent due to short-term, quick-fix issues. Golds gains are rooted in the precarious reality of todays global macroeconomic situation.

A quick glance around our world reveals a pandemic thats not going away persistent unemployment massive sovereign debt (which is growing) social unrest and an avalanche of newly printed fiat currency.

Consider whats happened since our most recentDigestthat focused on gold from a few weeks ago.

One, European leaders just agreed to create a 750 billion EUR ($858 billion) recovery fund to support the EU economies that have been hobbled by the coronavirus crisis. The European Commission is going to borrow this money so, more debt.

Two, here in the U.S., the CARES 2 Act appears right around the corner with another check coming to qualifying Americans.

CARES 2 will likely be another $1 trillion+ package, so fire up the Feds printing press again. And prepare for our national debt-to-GDP ratio to climb to even more stratospheric, record levels.

Three, the U.S. dollar continues weakening.

After spiking in the panic of the March market-lows, the Dollar has been falling hard. In recent days, its flat-out fallen off a cliff, as you can see below

Top to bottom from the spike in March, thats about a 9% drop in just four months.

Four, the CARES Act temporary moratorium on evictions, which protected some 12.3 million rental units nationwide, officially ended this past Friday.

Data from the U.S. Census Bureau found that nearly one in five renters roughly 14 million renters either didnt pay the rent last month or delayed their payment. Landlords can now begin to take action.

Yes, some renters are covered by a patchwork of state and local eviction bans that dont end until this fall. But in general, unless our officials extend the national moratorium in the next relief package, this could end in a wave of evictions with ripple effects extending throughout the broader economy.

Of course, if the moratorium is extended, the problem doesnt disappear, it simply shifts the economic pain to a different group.

Instead of renters, landlords without deep pockets will face a cash-flow problem, which puts them at risk of defaulting to their banks and lenders. If banks are left footing the bill, we can expect losses and stricter tightening of lending requirements that will hamper economic growth even more.

Bottom line, someone has to pay the bill. And if the government eventually has to swoop in to absorb all these rental payment losses, that means the taxpayer is booting that bill.

Five, and also from the economic arena, Markits U.S. preliminary composite purchasing managers index data for July was weaker than expected. The numbers are adding to the growing concern that our economic growth is stalling as our nation struggles to reopen.

Six, the U.S. ordered China to close its Houston consulate, citing Chinese efforts to steal U.S. trade secrets. In response, China has ordered the U.S. to close its Chengdu consulate. This is a new escalation in the rapidly deteriorating relationship between the superpowers.

Put it all together more sovereign debt, more fiat currency creation, more Dollar weakness, more economic pain, more geopolitical tension

While all terrible, its also highly bullish for gold.

***Its not just gold that will benefit bitcoin and altcoins are poised to climb as well

Shortly after its late-March low, bitcoin rallied alongside stocks until May.

Since then, it had been trading sideways, establishing a base. It also began trading in a tighter pattern.

But in that last few days, bitcoin has exploded out of its recent compressed trendlines. Its now back above $10,000.

Well show you this in the chart below.

But I would also draw your attention to the bottom pane beneath bitcoins market price. The pane features the readings of an indicator called Average True Range (ATR).

ATR is a volatility indicator. It shows how much an asset or security is moving up and down in a given time frame.

Higher ATR readings are higher volatility readings, and vice versa.

Well add commentary on the ATR below. For now, just note bitcoins price action breaking through its recent trend lines, as well as the level and curve of the ATR.

As you can see, bitcoins ATR has been trending lower and lower and lower. But in recent days, its stopped its decline and taken a sharp upward turn as bitcoins price pierced its upper trend line.

A study of market history shows that assets often make strong moves after going through periods of compressed price action and compressed volatility.

The reversal in the ATR coming from such low levels, alongside bitcoins explosion above $10,000, is another reason why we believe a larger price-breakout may have just started.

***While we expect gains for bitcoin, we anticipate even bigger moves from elite altcoins such as those held in Matt McCallsUltimate Cryptoportfolio

For context, Matt introduced his crypto service with his first altcoin recommendations back on January 7th. Since then, bitcoin has tacked on 33% as you can see below.

Meanwhile, whats the average gain of Matts 11 altcoin recommendations over the same period?

85%.

Again, thats theaveragegain.

As I write Monday morning, Im seeing individualaltcoin gains of 180%, 225%, and 272%.

***At the end of the day, the long-term case for gold and cryptocurrencies reduces to one thing getting some of your wealth outside the U.S. Dollar

While theres still a tug-of-war today between deflationary and inflationary forces, in the longer-term its hard to see how the trillions of dollars of new fiat currency creation wont result in significant inflation.

For savers with a large portion of their wealth in the dollar, this could be disastrous.

While we believe gold and elite cryptos are two of your best preventatives against such an inflation-disaster, they arent your only options.

You could invest in real estate or collectibles or a storage-units or fine art and yes, even stocks.

The reality is that companies with the ability to increase the price of their goods and services to match inflation rates will be better able to protect your wealth that plain ole dollars.

Bottom line move some of your wealth outside the Dollar to an asset that will retain value regardless of what happens with the Dollar itself.

As we wrap up, todays macroeconomic environment points toward a simple takeaway long gold, and long cryptos.

Have a good evening,

Jeff Remsburg

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New UC-led institute awarded $25M to explore potential of quantum computing and train a future workforce – University of California

In the curious world of quantum mechanics, a single atom or subatomic particle can exist simultaneously in multiple conditions. A new UC-led, multiuniversity institute will explore the realities of this emerging field as it focuses on advancing quantum science and engineering, with an additional goal of training a future workforce to build and use quantum computers.

The National Science Foundation (NSF) has awarded $25 million over five years to establish the NSF Quantum Leap Challenge Institute (QLCI) for Present and Future Quantum Computation as part of the federal governments effort to speed the development of quantum computers. The institute will work to overcome scientific challenges to achieving quantum computing and will design advanced, large-scale quantum computers that employ state-of-the-art scientific algorithms developed by the researchers.

There is a sense that we are on the precipice of a really big move toward quantum computing, said Dan Stamper-Kurn, UC Berkeley professor of physics and director of the institute. We think that the development of the quantum computer will be a real scientific revolution, the defining scientific challenge of the moment, especially if you think about the fact that the computer plays a central role in just about everything society does. If you have a chance to revolutionize what a computer is, then you revolutionize just about everything else.

Unlike conventional computers, quantum computers seek to harness the mysterious behavior of particles at the subatomic level to boost computing power. Once fully developed, they could be capable of solving large, extremely complex problems far beyond the capacity of todays most powerful supercomputers. Quantum systems are expected to have a wide variety of applications in many fields, including medicine, national security and science.

Theoretical work has shown that quantum computers are the best way to do some important tasks: factoring large numbers, encrypting or decrypting data, searching databases or finding optimal solutions for problems. Using quantum mechanical principles to process information offers an enormous speedup over the time it takes to solve many computational problems on current digital computers.

Scientific problems that would take the age of the universe to solve on a standard computer potentially could take only a few minutes on a quantum computer, said Eric Hudson, a UCLA professor of physics and co-director of the new institute. We may get the ability to design new pharmaceuticals to fight diseases on a quantum computer, instead of in a laboratory. Learning the structure of molecules and designing effective drugs, each of which has thousands of atoms, are inherently quantum challenges. A quantum computer potentially could calculate the structure of molecules and how molecules react and behave.

The project came to fruition, in part, thanks to a UC-wide consortium, the California Institute for Quantum Entanglement, funded by UCs Multicampus Research Programs and Initiatives (MRPI).The MRPI funding opportunity incentivizes just this kind of multicampus collaboration in emerging fields that can position UC as a national leader.

This new NSF institute is founded on the outstanding research contributions in theoretical and experimental quantum information science achieved by investigators from across the UC system through our initiative to foster multicampus collaborations, said Theresa Maldonado, Ph.D., vice president for Research and Innovation of the University of California. The award recognizes the teams vision of how advances in computational quantum science can reveal new fundamental understanding of phenomena at the tiniest length-scale that can benefit innovations in artificial intelligence, medicine, engineering, and more. We are proud to lead the nation in engaging excellent students from diverse backgrounds into this field of study.

The QLCI for Present and Future Quantum Computation connects UC Berkeley, UCLA and UC Santa Barbara with five other universities around the nation and in California. The institute will draw on a wealth of knowledge from experimental and theoretical quantum scientists to improve and determine how best to use todays rudimentary quantum computers, most of them built by private industry or government labs. The goal, ultimately, is to make quantum computers as common as mobile phones, which are, after all, pocket-sized digital computers.

The institute will be multidisciplinary, spanning physics, chemistry, mathematics, computer science, and optical and electrical engineering, among other fields, and will include scientists and engineers with expertise in quantum algorithms, mechanics and chemistry. They will partner with outside institutions, including in the emerging quantum industry, and will host symposia, workshops and other programs. Research challenges will be addressed jointly through a process that incorporates both theory and experiment.

Situated near the heart of todays computer industry, Silicon Valley and Silicon Beach, and at major California universities and national labs, the institute will train a future workforce akin to the way computer science training at universities fueled Silicon Valleys rise to become a tech giant. UCLA will pilot a masters degree program in quantum science and technology to train a quantum-smart workforce, while massive online courses, or MOOCs, will help spread knowledge and understanding of quantum computers even to high school students.

This center establishes California as a leader nationally and globally in quantum computing, Stamper-Kurn said.

The institutes initial members are all senior faculty from UC Berkeley, UCLA, UC Santa Barbara, the California Institute of Technology, the Massachusetts Institute of Technology, the University of Southern California, the University of Washington and the University of Texas at Austin.

We still do not know fully what quantum computers do well, Stamper-Kurn said, and we face deep challenges that arise in scaling up quantum devices. The mission of this institute is to address fundamental challenges in the development of the quantum computer.

More information on NSF-supported research on quantum information science and engineering is available at nsf.gov/quantum.

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IBM and University of Tokyo team up for Quantum Innovation Initiative Consortium – SmartPlanet.com

Big Blue and the University of Tokyo launched the Quantum Innovation Initiative Consortium (QIIC) on Thursday, in an effort to bring together industry, academics, and government to push forward quantum computing in Japan.

QIIC will be housed at the University of Tokyo and have access to the IBM Quantum Computation Center, which has 20 of Big Blue's "most advanced" quantum computers, according to IBM.

Joining the consortium, as well as IBM's Q Network, will be Toshiba, Hitachi, Mizuho, MUFG, JSR, DIC, Toyota, Mitsubishi Chemicals, and Keio University.

"I believe that Japan will play an important role in implementing quantum computing technology to society ahead of rest of the world, and that industry-academia-government collaboration is necessary for this," president of the University of Tokyo professor Makoto Gonokami said.

IBM and the University of Tokyo signed an agreement at the end of 2019 that would see a Q System One, owned and operated by IBM, installed in an IBM facility in Japan. At the time, it was said to be the third in the world after installations in the US and Germany. IBM said on Thursday the installation is planned for next year.

On Wednesday, Toshiba said it would lead a Global Quantum Cryptography Communications Network research project that was commissioned by the Japanese Ministry of Internal Affairs and Communications. Alongside Toshiba, NEC, Mitsubishi Electric, Furukawa Electric, Hamamatsu Photonics, University of Tokyo, Hokkaido University, Yokohama National University, Gakushuin University, the National Institute of Information and Communications Technology, the National Institute of Advanced Industrial Technology, and the National Institute of Materials and Technology will be involved in the project.

The project is set to run until the end of the 2024 financial year and will look to create a network of 100 quantum cryptographic devices and 10,000 users. Four areas of research have been identified: Quantum communication link technology; trusted node technology to ensure cryptographic keys are tamper resistant; quantum relay technology; and WAN construction and operation.

Toshiba said the project has a planned budget of 1.44 billion yen for its first year.

Elsewhere, the European arm of Japanese giant Fujitsu said it has signed up BBVA, Spain's second largest bank, for a proof of concept involving its digital annealer technology.

The annealer will be used to optimise asset portfolios and minimise risk.

"Finding the optimal selection from just 20 stocks generates the equivalent of over one quintillion (10 18) permutations," Fujitsu said. "Because of this complexity, portfolio optimisation has traditionally been a manual task, guided more frequently by guesswork than empirical data -- simply because the convoluted calculations far exceed the capabilities of regular computers."

"However, Fujitsu's digital annealer has been designed to process exactly this sort of complex combinatorial problem in just minutes."

The bank also intends to use the annealer to determine when is the best time to buy or sell assets, Fujitsu added.

"While true quantum computing as a technology is still in the laboratory testing phase, digital annealer represents a bridge to this future technology, thanks to its ability to evaluate multiple different combinations extremely rapidly," CTO for Fujitsu in Span Carlos Cordero said.

Beyond trying to define the stock market, the Japanese giant also said its annealer had previously been used to help optimise seams for welding robots in car making and find the best routes for delivery trucks. It has also been involved in helping pharmaceutical companies with discovering new substances.

UNSW offers Bachelor of Quantum Engineering degree

University says the degree will build a quantum workforce for Australia.

Q-CTRL launches service to help with cloud-based quantum computing

Meanwhile, UNSW has spun out an Internet of Things-focused security startup called CyAmst.

NEC to create hybrid quantum systems alongside D-Wave

Companies to look into developing services that combine Leap quantum annealing cloud with NEC supercomputers.

Quantum entanglement breakthrough could boost encryption, secure communications

Using quantum entanglement, a team of researchers has developed a new way to communicate via particles of light.

Honeywell claims to have world's highest performing quantum computer according to IBM's benchmark

Honeywell said JP Morgan Chase and other customers are using its quantum computer in production, which it claims is the most powerful currently in use based on a benchmark established last year by IBM.

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The future of encryption: Getting ready for the quantum computer attack – TechRepublic

PQShield, a spin-out from the UK's Oxford University, is developing advanced cryptographic solutions for hardware, software and communications to protect businesses' data from the quantum threat.

The development of quantum computers poses a cybersecurity problem such as the IT industry has never seen before. All stored data currently deemed secure by modern standards whether that's health records, financial data, customer databases and even critical government infrastructure could, in theory, be cracked by quantum computers, which are capable of effectively short circuiting the encryption we've used to protect that data until now.

Efforts to protect our data from the quantum threat are underway, though whether the issue is being looked at with the urgency it deserves is up for debate. PQShield, a post-quantum cryptography startup spun out of Oxford University, perceives a disconnect between the scale of the threat and the current cyber-readiness of most businesses in 2020, which it is now trying to address.

SEE: Quantum computing: Myths v. Realities (TechRepublic)

"The scale of the quantum attack is just too big to imagine," Dr. Ali Kaafarani, research fellow at Oxford's Mathematical Institute and founder of PQShield, tells TechRepublic.

"The most important part of what we're doing is to educate the market."

Kaafarani is a former engineer at Hewlett-Packard Labs and leads a team of 10 full-time quantum cryptographers, from what he estimates to be a worldwide pool of just a hundred or so. The company is busy working on the development of quantum-secure cryptography encryption solutions for hardware, software and communications that will secure information from future risk, yet can be implemented using today's technology.

This comprises a system on chip (SoC) and software development kit that allow companies to create secure messaging applications, protected by a "post-quantum" variant of the Signal cryptographic protocol. Central to PQShield's technology is that it is designed to work with both legacy systems as well as those expected in the years to come, meaning it could offer protection for everything from keyless cars and other connected devices, to data moving to and from cloud servers.

This, Kaafarani explains, is important owing to the fact that post-quantum cryptography cannot be retrospectively implemented meanwhile data encrypted by modern standards remains open to post-quantum threats. "What we're using right now as end-to-end encryption...is secure now, but people can intercept them and steal encrypted data," he says.

"Once they have access to a quantum computer, they can decrypt them, so confidentiality is threatened in retrospect, because whatever is considered confidential now can be decrypted later on."

Kaafarani also perceives an issue with the current attitudes to remediating cyberattacks, which he likens to applying a band-aid to a repeating problem.

SEE: SSL Certificate Best Practices Policy (TechRepublic Premium)

"That's why we started PQShield to fill in this gap, to lead the way to a smooth and secure transition to the quantum era. There is a real opportunity here to get things right from the beginning."

The startup recently completed a 5.5m funding round led by VC Firm Kindred Capital and has now secured German engineering company Bosch as its first OEM customer. While the exact details of the deal are still under wraps, Kaafarani says the deal is indicative of the threats businesses are beginning to identify as the age of quantum computing approaches.

"Their hardware may be built to last, but right now, their security isn't," he says.

"If you're designing a car that's going to go on the roads in the next three years, if you're doing security by design, you should be thinking of the next security standards: not the standards that are valid now, but the standards that will be valid in the next five, 10, 15 years," he says.

"Future-proofing is an imperative, just as it is for the banks and agencies that hold so much of our sensitive data."

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‘Butterfly effect’ is wrong and reality can ‘heal itself’, quantum scientists find in time travel experiment – The Independent

Scientists have disproved the butterfly effect at the quantum level, refuting the idea that changes made in the past would have grave ramifications upon returning to the present.

In the simulation, a piece of information is simulated to be sent backwards in time. That information is then damaged. However, when the information returns to the present it is largely unaltered and, counter-intuitively, with travels further into the past the final piece of information returns with less damage.

Such an effect only works in quantum mechanics, in simulations conducted via quantum computers, because time travel is not yet possible.

Sharing the full story, not just the headlines

On a quantum computer, there is no problem simulating opposite-in-time evolution, or simulating running a process backwards into the past, said Nikolai Sinitsyn, a theoretical physicist at Los Alamos National Laboratory, in a statement.

We can actually see what happens with a complex quantum world if we travel back in time, add small damage, and return. We found that our world survives, which means there's no butterfly effect in quantum mechanics.

To test the butterfly effect, the researchers used an IBM-Q quantum processor with quantum gates, which simulate forwards and backwards cause and effect.

Standard computers and processors use bits in their chips, which exist in two positions - either on or off which is the makeup of binary.

Quantum computers use qubits rather than bits, which can be both be on and off simultaneously, as well as somewhere in between.

In the simulation, a person sends a qubit back in time. An intruder in the past measures the qubit, which disturbs it and changes its quantum correlations.

This is because even slight contact between an atom exhibiting quantum behaviour and another atom will immediately move the atom out of its quantum state.

The simulation is then run forward, to bring the qubit to the present day. It was found that, rather than the information being unrecoverable due to extrapolation of the small inciting incident the act of stepping on a butterfly in the common metaphor it was protected from minor tampering.

We found that the notion of chaos in classical physics and in quantum mechanics must be understood differently, Sinitsyn said.

The discovery could be used to hide information converting it from its initial state into one of quantum entanglement and could also be used to test quantum devices.

Since the lack of butterfly effect exists in quantum mechanics, if the simulation is run and the result is different it would prove that the quantum processor is not working effectively.

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'Butterfly effect' is wrong and reality can 'heal itself', quantum scientists find in time travel experiment - The Independent

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Research: the butterfly effect does not exist in the quantum model – FREE NEWS

Scientists at Los Alamos National Laboratory used a quantum computer and simulated a time travel model. They found that the butterfly effect did not exist in their experiment.

The researchers used a quantum computer to simulate time travel and showed that there is no butterfly effect in the quantum model. They used quantum bits and sent them to a simulated past. In this case, one of the bits was damaged during sending, but it did not damage other bits that were sent along with them.

The simulation involved two hypothetical humans, Alice and Bob, each with a qubit a quantum bit of information. During the experiment, Alice sent her qubit to the past, but at some point, Bob intervened in it and changed the information in it. However, despite the changes, Alice was able to recover the information when the qubit returned.

This way we can really see what happens to the complex quantum world if we travel through time, add a little damage and come back. We found that this does not harm the present, which means there is no butterfly effect in quantum mechanics.

Nikolay Sinitsyn, co-author of the work

The researchers repeated the experiment and found that simulating the return of a qubit to the past and inflicting damage on it has little or no effect on the information it carries. This effect can be applied in areas where quantum devices must carry secret information. Data can be hidden by transforming the original state into a confusing one.

We found that even if an attacker manipulates in a highly entangled state, we can still easily recover useful information since this damage does not increase with decoding, the scientists noted.

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Research: the butterfly effect does not exist in the quantum model - FREE NEWS

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