Blue Chip Issue 96

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BLUE BLUE CHIP CHIP INVESTMENT | Technology Quantum leap: how quantum computers are rewriting the rules of tech The growing demands of AI, data science and global complexity are pushing classical computing to its limits. In response, quantum computing is emerging - a breakthrough as transformative as the telescope was to the naked eye when trying to map the universe. In this article, we focus on the development of quantum computing and explore the impact it can have across industries. Back in the 1980s, home computing was just beginning to catch on. A popular device at the time was the Sinclair ZX Spectrum, good for tape-fed video games and not much else. Fast forward to today, and computers are literally processing data millions of times faster! Even a typical smartphone holds over four-million times the amount of storage than the humble Spectrum. You needed to plug the memory into the back each time you used it. This leap in performance has largely been driven by Moore’s Law, an observation made by Intel co-founder Gordon Moore in 1965. He noted that the number of transistors [1] on a microchip double approximately every two years, effectively doubling computing power. While this trend has begun to slow, it paved the way for tremendous technological progress. Now, we’re approaching the limits of what classical computing can do - and this is where quantum computing comes in. Image generated using Google Gemini AI, developed by Google DeepMind [June 2025]. 30 www.bluechipdigital.co.za

INVESTMENT | Technology BLUE CHIP exciting avenues to expand how we can process information and in turn develop new opportunities spanning most industries. Classical vs quantum computing: a simple analogy Classical computing = one traveller, one route. Imagine trying to find the fastest way to get from London to Tokyo. A classical computer is like a single traveller who tries one route at a time, checks how long it takes, then tries another. As the technology matures, it’s important to be positioned across the full spectrum of investment opportunities Quantum computing = millions of travellers exploring all routes at once. A quantum computer is like sending millions of travellers out at the same time, each testing a different route instantly - by plane, boat and even time zones - until the best path is found. These unique properties [2] give quantum computers the ability to process vast combinations of data simultaneously. By contrast, modern computers use light-switch-style resistors that process information in a linear sequence. In a world increasingly defined by data and what we can do with it, quantum computing is opening Transforming industries Quantum computing holds promise across several fields, with the potential to transform major sectors in practical and profound ways: Pharmaceuticals. Traditional drug discovery is a slow, expensive process involving trial and error. Quantum computers could simulate molecular interactions at an atomic level, drastically reducing the time needed to identify potential drug candidates and enabling more targeted therapies for complex diseases. Materials science. Designing new materials with tailored properties could be revolutionised. For example, researchers could create superconductors that work at room temperature or develop ultra-light but strong materials for use in aerospace and construction, all by simulating atomic structures more accurately than ever before. Logistics and transportation. Quantum algorithms can optimise complex logistical networks such as global supply chains, airline scheduling and urban traffic systems. This could mean faster delivery times, lower fuel consumption and better contingency planning in case of disruptions. Cybersecurity. Quantum computing is a double-edged sword in this area. It could break many of today’s encryption methods, but it could also enable next-generation quantum encryption that is theoretically unbreakable, enhancing data security across industries. Artificial Intelligence and machine learning. AI and machine learning require processing huge volumes of data to identify patterns and make predictions. Quantum computing could speed up model training, improve pattern recognition and enhance decision-making capabilities. It could lead to more intuitive AI, capable of learning from fewer data points and adapting in real-time, transforming industries from finance to healthcare. As the world converges towards AI in both physical and data forms, the case for more powerful computing is clear to see. Where are we now? The long road to quantum supremacy Despite its promise, quantum computing is still in its early stages. Current machines, built by companies like IBM, Google and startups such as Rigetti, have demonstrated basic functionality but are still prone to errors and instability. These machines require near-absolute-zero temperatures and specialised environments to operate. Why is progress so slow? Unlike classical computers, which evolved through decades of commercial demand and consumer use, quantum computers require breakthroughs across physics, engineering and materials science. It’s not just about writing better code - it’s about redefining the hardware from the ground up. www.bluechipdigital.co.za 31