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Quantum computing has the promise to reshape industries by unleashing computing power well beyond what traditional computers have. Logistics, pharmaceuticals and financial services all stand to benefit from applying the new technology.

JPMorgan Chase (ticker: JPM) published data last week about one of its quantum-computing experiments demonstrating the banks growing expertise in that realm. The academic-style paper is a little Byzantine, but investors should pay attention, because they will be hearing more about quantum computing from other players, including Honeywell (HON), Microsoft (MSFT) and Google parent Alphabet (GOOGL) in the near future.

In this paper, we present a novel, canonical way to produce a quantum oracle from an algebraic expression, the authors of the JPMorgan paper wrote. Thats a mouthful. Canonical, in this instance, appears to mean authoritative. And according to Microsoft, a quantum oracle is a is a black box operation that is used as input to another algorithm.

Microsofts definition only raises more questions and probably doesnt help many of the uninitiated, Barrons included. Classically, an oracle answers questions about the future. That isnt a bad analogy for quantum computing. The technology is mysterious and its power not completely understood by many peopleinvestors included.

The use of a quantum oracle, in this instance, makes doing complicated math with fibonacci numbers easier than with traditional computing systems. Fibonacci numbers form a sequence in which each number is the sum of the prior two. The sequences have applications in investing and information security, among other areas.

The Morgan team ran their experiment on the new Honeywell computer based on trapped-ion technology with quantum volume 64.

Honeywell has the hardware. And just before the JPMorgan paper was released, the industrial conglomerate announced it had created the worlds most powerful quantum computer, achieving a quantum volume of 64. Essentially, Honeywell has successfully tethered six q-bits, or quantum bits, together.

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Quantum volume is an industry term. The number 64 comes from 2 raised to the power of 6. A big reason quantum computers can do more is the q-bits can have two values at the same time. Six bits can have, essentially, 64 states at once. Quite frankly, its all a little confusing.

Today, quantum computers can still be beaten in most applications by traditional computers. But quantum power is growing. The first Wright brother flight went 600 meters, Christopher Savoie, founder and CEO of quantum computing firm Zapata Computing, said. He was explaining how to think of the current generation of quantum-computing technology. The Wright brothers flight happened in 1903 and by 1918 there were air forces around the globe.

Zapata partners with Honeywell to help develop quantum programs, applications and algorithms. Zapata helps with the software running on Honeywell hardware used by JPMorgan.

The capability of [quantum computing] is exponential, Savoie said. There is a hockey-stick-like pattern that develops as more q-bits are added to the system. It will be tough to find an area of human activity where this wont help.

It is a little mind bending. But paying attention early will give investors an edge down the road.

JPMorgan stock was down more than 2% last week, worse than the 1.9% and 1% respective gains of the Dow Jones Industrial Average and S&P 500 over the same span. Honeywell shares gained 0.6% last week.

Write to Al Root at allen.root@dowjones.com

Read the original post:
JPMorgan Shows Its Chops in Quantum Computing. Heres Why It Matters. - Barron's