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While the internet has undoubtedly brought new benefits, it's also brought new problems as cyber criminals look to exploit our seemingly ever-growing reliance on connectivity.

Phishing emails, malware and ransomware attacks, or getting your bank details, passwords and other personal information stolen the internet has provided malicious hackers with a variety of new ways to make money and cause disruption. Just look, for example, at how critical infrastructure, schools and hospitals have been affected by cyberattacks.

We're yet to fully secure networks against today's internet threats, yet technology is moving on already, bringing new threats that we must somehow prepare for.

One of the most significant technological breakthroughs heading our way isquantum computing, which promises to be able to quickly solve complex problems that have defeated classical computers.

While this advance will bring benefits to scientific research and society, it will also create new challenges. Most notably, the power of quantum computing could make quick work of cracking the encryption algorithms we've used for decades to secure a range of areas, including online banking, secure communications and digital signatures.

Currently, quantum computing is expensive and the expertise required to develop it is restricted to large technology companies, research institutions and governments. But like any innovative technology, it will eventually become more commercially available and easier to access and cyber criminals will be looking to take advantage of quantum.

"There's some things over the horizon that you can see coming; notably quantum computing being able to crack current encryption algorithms," says Martin Lee, technical lead of security research at Cisco Talos.

"What was an entirely appropriate encryption key length 20 years ago is no longer appropriate".

The US Cybersecurity and Infrastructure Security Agency (CISA) has already warned that action must be taken now to help protect networks from cyberattacks powered by quantum computing, particularly those that support critical national infrastructure.

But while disruptive cyberattacks powered by quantum computing are a key cybersecurity threat of the future, quantum computers could themselves be a lucrative target of hackers.

SEE:The stakes 'could not be any higher': CISA chief talks about the tech challenges ahead

Let's think of the specific example of crypto-mining malware. This is a form of malware that attackers install on computers and servers to secretly use the power of someone else's network to mine for cryptocurrency and pocket the profits all without needing to pay for the resources or the power being consumed.

Cryptocurrencies, such as Bitcoin, are generated by computers by solving complex mathematical problems the sort of mathematical problems that could be relatively trivial for a network of quantum computers to solve. That means that if cyber criminals were able to plant crypto-mining malware on quantum computers, they could get very rich very quickly at almost no cost to themselves.

"Infecting one of those would allow somebody to start calculating very complex algorithms," says David Sancho, senior antivirus researcher at Trend Micro.

"If you have a crypto miner on a quantum computer, that's going to tremendously speed up your mining capabilities those things becoming a target of trivial cyberattacks, it's a very easy prediction to make."

But quantum computing isn't the only emerging technology that cyber criminals will look to take advantage of: we can expect them to exploit developments in artificial intelligence (AI) and machine learning (ML), too.

Like quantum computing, AI and ML look set to power innovations in a range of areas, including robotics and driverless cars, speech and language recognition, healthcare and more.

AI that can adapt and learn can be used for good, but ultimately, once it becomes more widely available, it's only a matter of time before cyber criminals are using it to help make cyberattacks more effective.

"We will start seeing malware campaigns, ransomware operations and phishing campaigns being run totally automated by machine-learning frameworks. It hasn't been done yet but it wouldn't be very hard at all to do," says Mikko Hyppnen, chief research officer at WithSecure.

One means of exploiting this technology would be programming a text-based generation algorithm to send out, and reply to, common spam emails or business email compromise (BEC) campaigns.

Rather than needing a human to take time out to write and reply to messages, criminals could rely on an algorithm that can also analyse which responses are most likely to be real victims that are worth replying to, rather than people who remain unconvinced, or those who send prank replies back to the spammer. That reality means in future you could end up being scammed by a bot.

There's also the potential that cyber criminals could use advancements in ML to develop self-programming smart malware which, rather than needing a developer to support it, could update itself by automatically reacting to the cyber defences it meets to have the greatest chance of being effective.

"You could imagine when self-programming programs become more capable than right now where they can finish functions created by humans that sounds great until you give it ransomware," says Hyppnen.

"It could change the code, make it more complex to understand, make it so it's different every time, it could try to create undetectable versions. All of that is technically doable, we simply haven't seen it yet and I think we will," he warns.

SEE:Spy chief's warning: Our foes are now 'pouring money' into quantum computing and AI

But AI being abused to power cyber threats isn't a just a future problem for the internet it's already happening now, with deep learning being used to power deepfakes, which are videos that look like they're real people or events but are actually fake.

They've been used in political misinformation campaigns, pranks to fool politicians and they're already being used to enhance BEC and other fraud attacks, with cyber criminals using deepfake audio to convince employees to authorise significant financial transfers to accounts owned by the attackers.

"We're entering this brave new world around deepfake video that will be used to commit crimes. Not just manipulation, but also in disinformation and misinformation," says Theresa Payton, CEO of Fortalice Solutions and former CIO at the White House.

Take the example of CEOs who are in the public-facing realm. They appear on television, they give speeches, are there are videos of them online, so it's relatively simple to find recordings of what they sound like and it's already possible for scammers to run those resources through deepfake technology to mimic their voice.

After all, if an employee gets a call from the head of the company telling them to do something, they're likely to do it and the cyber criminals behind these attacks know this fact.

"I already know of three cases where deepfake audio was used to successfully convince somebody to transfer money to a place they shouldn't have transferred it. That is stunning to me that as a sample size of one, I already know of three cases," says Payton.

And as the technology behind deepfakes continues to improve, it means that it will only get harder to tell what's real from what's fake.

"I grow increasingly concerned about our lack of ability to really shut down manipulation campaigns," says Payton.

Deepfakes aren't the only area where cyber threats could impact our everyday lives if the future of the internet isn't secured properly. Increasingly, smart Internet of Things (IoT) devices are becoming a bigger part of our daily existence, with a variety of sensors, appliances, wearable devices and other connected products appearing in homes, offices, factories, and more.

While there are certain advantages to connecting IoT devices to our home and workplace networks, this increased level of networking is also creating a larger attack surface for cyber criminals to try to exploit.

"When you add functionality and connectivity into everyday devices, they become hackable. Devices that were unhackable become hackable. It might be very hard. Nevertheless, it is always doable. There is no secure computer. There is no unhackable device," explains Hyppnen.

"This is the thing that's happening now during our time, and there's no stopping it. It doesn't matter what we think about it, it's going to happen anyway, and it's going to be increasingly invisible."

Think about your home appliances: it's increasingly likely they're 'smart' and connected to the internet. Anything from your television to your toothbrush could now be internet-connected.

But for appliance manufacturers, building internet-connected devices is a relatively new phenomenon and many won't have needed to think about cybersecurity threats before. Some vendors might not even think about it in the design process at all, leaving the products vulnerable to hackers.

While hackers coming after your coffee machine or your fish tank might not sound like a concern, it's a point on the network that can be accessed and used as a gateway to attack more important devices and sensitive data.

SEE: Critical IoT security camera vulnerability allows attackers to remotely watch live video - and gain access to networks

While IoT security should (hopefully) improve as it becomes more widespread, there's also another problem to consider. There'salready millions and millions of IoT devices out there that lack security and these might not even be supported with security updates.

Think about how many smartphones can't receive security updates after just a few years. Then scale that reality up to the fast-growing IoT what's going to happen if devices that aren't regularly replaced, such as a refrigerator or a car, can continue to be used for decades?

"There's no software vendor on the planet that would support software written 20 years ago. It's just not happening," says Hyppnen, who suggests that when manufacturers no longer support updates for their devices, they should open source it to allow others to do so.

"You would get the security patches for your old, outdated legacy things by paying for the service just like you pay for any other service."

Connected devices are already becoming ubiquitous throughout society, with no sign of this trend slowing down whole smart cities will become the norm. But if cybersecurity and compliance isn't a key force driving this trend, it could lead to negative consequences for everyone.

"If you don't resolve these issues, you're going to have attacks happen at a scale and speed you've never seen before bad things will be faster. That is incredibly concerning," says Payton, who believes it's only a matter of timebefore a ransomware attack holds a smart city hostage.

"They will be a target and we will experience some level of sustained disruption," she adds.

Despite the potential threats on the horizon, Payton is optimistic about the future of the internet. While cyber criminals are going to be using new technologies to help improve their attacks, those responsible for defending networks will also be deploying the same technologies to help prevent attacks.

"I'm pretty energized about our continuing ability to model nefarious behaviors, then use artificial intelligence, big data, analytics, and different types of machine learning algorithms to continue to refine technology," she explains

"Now, will it block everything? No, because cyber criminals are always adapting their tactics. But I do have a lot of optimism for being able to block more of the basic-to-medium types of threats that seem to get through today."

That sense of optimism is shared by Hyppnen, who looks back on how technology has evolved in recent years. He believes cybersecurity is improving and that even with new technologies on the horizon, it doesn't mean cyber criminals and other malicious hackers will simply have it easy.

"Computer security has never been in better shape than today. That's a controversial comment people on the street would most likely think that data security has never been worse because they only see the failures. They only see the headlines about yet another hack," he says.

"But the fact is, if you compare the security of our computers today and a decade ago, it's like night and day. We're getting much, much better at security attackers have a much, much harder time breaking through."

Let's hope that situation remains the case the future stability of the internet depends on it being true.

Excerpt from:
The scary future of the internet: How the tech of tomorrow will pose even bigger cybersecurity threats - ZDNet

By Mahesh Zurale, Senior Managing Director and Lead Advanced Technology Centres in India, Accenture

1. How does Accenture define metaverse?Today, there are various definitions of the metaverse, and a lot of early efforts are being built with the focus on how to get it right each with different platforms, partners, and technologies at the core. Accenture has a distinct view: the metaverse is a continuum that will entirely transform the way we live and work in the future. Today, we increasingly see the convergence of multiple technologies (ranging from gaming engines to digital twins and extended reality) to address real-world problems in new ways and create transformational business value across the enterprise. That is why we define the metaverse as a continuum, as its evolving and expanding across multiple dimensions and transforming every aspectof business.

2. What are the building blocks of Metaverse?We believe the metaverse will impact every part of every business, and organizations have a unique opportunity to act boldly and compete in tomorrows market. In our latest Technology Vision 2022 report, we have highlighted the four building blocks of the Metaverse Continuum that will be foundational to organizations as they set the stage for the future. The first one is WebMe, which looks at the metaverse as the next evolution of the internet where users can not only browse digitally but also participate in a shared experience spanning across both the physical and virtual worlds.

The second trend is called Programmable World, which refers to the infusion of technology into our physical environments. It focuses on how 5G, cloud, and immersive technologies such as augmented reality (AR), extended reality (XR), and virtual reality (VR) are enabling better control, automation, and personalization.

The third trend The Unreal gives an overview of how AI-generated synthetic data and images are blurring the difference between the real and the unreal. While synthetic content will enable more seamless experiences, prioritizing authenticity will be key to preventing deep fakes and malicious attacks. The fourth trend Computing the Impossible is about exploring the outer limit of what is computationally possible and how it is being disrupted as the next generation of machines emerge. These machines quantum, HPC, and biology-inspired will help businesses solve challenges that were deemed impossible earlier.

3. How are AI, quantum computing, Web3, and the metaverse shaping the world of business?AI, quantum computing, Web3, and the metaverse will fundamentally change business processes, including customer interactions, day-to-day operations, working style, and products and services. In fact, 42% of executives surveyed in our Technology Vision 2022 report have cited the metaverse as transformational, whereas 71% believe it will have a positive impact on their organization. Major companies will shift part of their operations to the metaverse to engage with their employees in exciting new ways. At Accenture, we have built what we believe is the largest enterprise metaverse on the planet the Nth Floor to offer new joiners an immersive onboarding experience and employees new ways to learn and collaborate.

Businesses across sectors including retail, consumer products, financial, health, industrial, and manufacturing will use metaverse-related technologies to reimagine and elevate customer experiences. For example, in 2021 Gucci created The Gucci Garden Experience to sell virtual products and sold a virtual-only digital twin of a Gucci purse at a higher price than its real-world counterpart.

4. How can enterprises drive maximum value from the Metaverse?Organizations need to start prioritizing their technology investments to build a foundation in the metaverse. It is important to first identify and close the existing gaps in their digital transformation, whether it is delayed cloud adoption or the lack of a robust security infrastructure. Another area that organizations need to consider is building skills in AI, blockchain, gaming, security, VR, and XR to prepare for the metaverse. The other in-demand skills will include distributed ledger experts and token economists who understand the economics of creating tokenized products. Additionally, strategic partnerships with technology experts will be crucial to support enterprises in their journey towards themetaverse.

5. What are the security measures that companies should incorporate to operate in the Metaverse?As metaverse gains momentum globally, it not only presents new opportunities for businesses to explore, innovate and create new products/services but also brings forth concerns around data, privacy, and safety. Establishing a responsible metaverse from the start is essential to fostering trust in the underlying technology and experiences to drive adoption and user acceptance.

For example, organizations engaging in the metaverse require a comprehensive approach to security. If not, the absence of a standard framework will allow threat actors to take advantage of potential vulnerabilities and gain access to critical user data, which could result in security breaches, ransomware attacks, and identity theft. Organizations need to address the cybersecurity gaps early and proactively map user journeys across the metaverse.

Deploying advanced security solutions that can not only assess the potential risks but also spot and identify threats and breaches will be key to making the new system of place digitally secure. As with any technology, a strategic approach must be taken while deploying solutions in the metaverse to gain the maximum benefit without compromising on security.

6. How Metaverse will change the dynamics of business in the future?Technologies like 5G and cloud that lay the foundation of the metaverse have already proven to deliver improved efficiency, boost operations maturity, and drive business innovation. For instance, Shell, through its AR Remote Assist, enables its workers in the field to get assistance from experienced technicians across the world, allowing real-time, collaborative discussions amongst its teams. This is just one example of how the metaverse will enable the adoption of people-centric technologies to offer new ways of working and collaboration.

With the use of digital twins, companies can create virtual replicas of their physical offices and provide employees the flexibility to work from anywhere. Similarly,extended reality has the potential to make employee learning experiences more immersive, resulting in better retention and improved performance. While the metaverse is still at a nascent stage, it presents immense business potential. Companies need to reimagine their business now to capitalize on the possibilities the future will bring.

See the article here:
Are enterprises ready for the next wave of digital change? - Express Computer

2020 has been a hectic year with the coronavirus pandemic affecting our lives in an unprecedented manner. However, with scientists and researchers working tirelessly, it was a great year for technological advancements and achievements. The breakthrough technologies mentioned in the article will surely affect our lifestyle in the years to come.

These are gifts of technology that have been the highlight of the first year of this decade:

You may be aware of the fact that the internet we use today is extremely vulnerable to hacks and exploits by people with questionable intentions. For the past few years, data scientists and analysts have been working on creating the first quantum internet that would be completely secure from hackers.

The Delft University of Technology, one of the big organizations working on this project, has successfully developed this technology. In a presentation, Physicist Ronald Hanson at the Delft University of Technology along with his collaborators linked three devices in such a way that any two devices in the network ended up with mutually entangled quantum bits.

These quantum bits are used for transmitting information and communicating with other devices the use of entanglement makes it almost impossible for hackers to snoop around the user devices.

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In this digital age, the use of cash is continuously declining. Cash transactions need intermediaries and in each stage, there is a considerable markup. On the other hand, digital money, like Libra by Facebook exists only in its digital form, which can lead to a breach of financial privacy.

Digital money can be beneficial for instantaneous transactions and may also mean that parties would have to go through minimal or no intermediaries at all. Like cryptocurrencies using blockchain technology, which is decentralized, digital currency can potentially break the global financial system into small fragments.

Though many have dreamed of it, using a quantum computer to outperform classical computers cannot be implemented daily just yet. Google has developed a Sycamore quantum processor, which can be used to achieve quantum supremacy.

In a test, Sycamore could determine a set of randomly distributed numbers in three minutes and 20 seconds, which would have taken 10,000 years for a classical computer. Even though the results of the tests and calculations were impressive, we are still years away from using quantum computers to solve problems that classical computers cannot handle.

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Differential privacy can help organizations collect and share collected user data while keeping their identities private. The 2020 US Census, which is the largest-scale application would use differential privacy while distributing population data.

This technology aims to maximize data usage without disclosing the user identity. Differential privacy ensures the unavailability of raw data to database managers or data scientists and allows organizations to tackle privacy-related problems and build trust.

With the help of improved computing capabilities of newly developed processors, scientists can now make proper reports of how climate changes can affect severe weather events. Civilians and the military can now prepare in advance in case of natural disasters due to weather conditions.

Further, it also gives enough evidence to hold responsible authorities and the government responsible for not taking necessary steps when needed. Climate change can cause immeasurable loss of lives and properties, and proper climate change attributions would help the people take proper and necessary precautionary measures.

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With thousands of people worldwide having unique ailments and disorders, traditional medication cannot help them all. Have you ever wondered how this problem can be solved by producing medication for a particular case? This way, scientists and doctors can help cure rare genetic disorders and rare diseases.

The dream of achieving hyper-personalized medication is not too far and will bring hope and joy to several people all over the world. Medicines tailored to the exact needs of a single patient will treat and cure ailments that went untreated earlier. This was without a doubt, one of the best technological advancements in the field of medicine.

Aiming to provide high-speed internet services all over the world, satellite mega-constellations projects were a great success. It is the much-awaited solution to unreliable WiFi signals and fluctuating cellular networks. Satellite mega-constellations would enable global connectivity for almost everyone with a proper device.

However, the development and implementation of this technology bring a few major concerns. Space will be littered with several small satellite mega-constellations to bring unhindered connectivity to everyone.

Also, in the absence of a set of international rules and regulations and authority to enforce them, major industry leaders can end up exploiting its uses. This would lead to major problems and lead to unbridled chaos.

Long gone are the days when users would have to depend on heavy computer setups to use powerful AI algorithms. Nowadays, handheld devices like mobile phones and household appliances are capable of using AI programs without even interacting with the cloud.

With the development of tiny AI, developers and software enthusiasts can work to shrink the size of existing and new AI models without losing their efficiency and functionalities. Accessing AI models from our devices involve no latency due to the lack of interaction with the cloud and hence there are fewer privacy-related concerns.

Currently, big tech companies like Google, Apple, Amazon as well as IBM are leading the market with the application and implementation of tiny AI technology.

Since ancient times, adventurers, researchers, and philosophers have spent their lives finding the answer to their aging problems. The wait is almost over as doctors and scientists have developed drugs that can help slow down your aging.

These drugs can be very useful for patients suffering from diseases like cancer, dementia, and heart-related problems by slowing down the aging process. Though a lot of research has not been conducted yet, initial trials have proved these drugs to be safe for humans.

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Working with technologies like machine learning and artificial intelligence, scientists and data scientists are using AI to discover molecules that can affect the healthcare industry greatly.

With the discovery of the antibiotic Halicin using Artificial Intelligence, medical science has gained a golden opportunity to develop exponentially. Though using AI for healthcare is not new, this was the first time AI has identified a completely new antibiotic variety without any human intervention or assumptions.

Though this may be a very expensive process due to the rarity of the molecules in question, AI can help bring down the cost of production to a great extent. It can evaluate and use molecules effectively and efficiently, which might not be possible for human scientists.

Visit link:
10 Breakthrough Technologies That Is Going To Change The Future - Postoast

"In essence, the quantum computing industry has yet to demonstrate any practical utility..."Seriously Though

Oxford quantum physicist Nikita Gourianov tore into the quantum computing industry this week, comparing the "fanfare" around the tech to a financial bubble in a searing commentary piece for the Financial Times.

In other words, he wrote, it's far more hype than substance.

It's a scathing, but also perhaps insightful, analysis of a burgeoning field that, at the very least,still has a lot to prove.

Despite billions of dollars being poured into quantum computing, Gourianov argues, the industry has yet to develop a single product that's actually capable of solving practical problems.

That means these firms are collecting orders of magnitude more in financing than they're able to earn in actual revenue a growing bubble that could eventually burst.

"The little revenue they generate mostly comes from consulting missions aimed at teaching other companies about 'how quantum computers will help their business,'" Gourianov wrote for the FT, "as opposed to genuinely harnessing any advantages that quantum computers have over classical computers."

Contemporary quantum computers are also "so error-prone that any information one tries to process with them will almost instantly degenerate into noise," he wrote, which scientists have been trying to overcome for years.

Gourianov also took aim at other assumptions about the field, arguing that fears over quantum computers being able to crack even the securest of cryptographic schemes are overblown.

Notably, the piece comes just weeks after a group of researchers found that a conventional computer was indeed able to rival Google's Sycamore quantum computer, undermining the tech giant's 2019 claims of having achieved "quantum supremacy."

Despite the industry's less-than-stellar results, investors are still funneling untold sums into quantum computing ventures.

"In essence, the quantum computing industry has yet to demonstrate any practical utility, despite the fanfare," Gourianov wrote. "Why is then so much money flowing in? Well, it is mainly due to the fanfare."

The money, he argues, is coming from investors who typically don't have "any understanding of quantum physics," while "taking senior positions in companies and focusing solely on generating fanfare."

In short, Gourianov believes it's only a matter of time until the "bubble will pop" and the "funding will dry up" at which point, it's already too late.

READ MORE: The quantum computing bubble [Financial Times]

More on quantum computers: UK Military Wants to Install Quantum Computers in Tanks for Some Reason

Originally posted here:
Oxford Physicist Unloads on Quantum Computing Industry, Says It's Basically a Hype Bubble - Futurism

Every country is vying to get a head start in the race to the worlds quantum future. A year ago, the United States, the United Kingdom, and Australia teamed up todevelopmilitary applications of digital technologies, especially quantum computing technologies. That followed the passage in 2019 of the National Quantum Initiative Act by the U.S. Congress, which laid out the countrys plans to rapidly create quantum computing capabilities.

Earlier, Europe launched a $1 billion quantum computing research project, Quantum Flagship, in 2016, and its member states have started building a quantum communications infrastructure that will be operational by 2027. In like vein, Chinas 14th Five Year Plan (2021-2025) prioritizes the development of quantum computing and communications by 2030. In all, between 2019 and 2021 China invested as much as $11 billion, Europe had spent $5 billion, the U.S. $3 billion, and the U.K. around $1.8 billion between to become tomorrows quantum superpowers.

As the scientific development of quantum technologies gathers momentum, creating quantum computers has turned into apriority for nations that wish to gain the next competitive advantage in the Digital Age. Theyre seeking this edge for two very different reasons. On the one hand,quantum technologies will likely transform almost every industry, from automotive and aerospace to finance and pharmaceuticals. These systems could create fresh value of between $450 billion and $850 billion over the next 15 to 30 years, according to recentBCG estimates.

On the other hand, quantum computing systems will pose a significant threat to cybersecurity the world over, as we argued in an earliercolumn.Hackers will be able to use them to decipher the public keys generated by the RSA cryptosystem, and to break through the security of any conventionally-encrypted device, system, or network. It will pose a potent cyber-threat, popularly called Y2Q (Years to Quantum), toindividuals and institutions as well as corporations and country governments. The latter have no choice but to tacklethe unprecedented challenge by developing countermeasures such as post-quantum cryptography, which will itself require the use of quantum systems.

Countries have learned the hard way since the Industrial Revolution that general-purpose technologies, such as quantum computing, are critical for competitiveness. Consider, for instance, semiconductor manufacturing, which the U.S., China, South Korea, and Taiwan have dominated in recent times. When the COVID-19 pandemic and other factors led to a sudden fall in production over the last two years, it resulted in production stoppages andprice increases in over 150 industries, including automobiles, computers, and telecommunications hardware. Many countries, among the members of theEuropean Union, Brazil, India, Turkey, and even the U.S., were hit hard, and are now trying to rebuild their semiconductorsupply chains. Similarly,China manufacturesmost of the worlds electric batteries, with the U.S. contributingonly about 7% of global output. Thats why the U.S. has recently announcedfinancial incentivesto induce business to create more electric battery-manufacturing capacity at home.

Much worse could be in store if countries and companies dont focus on increasing their quantum sovereignty right away. Because the development and deploymentof such systems requires the efforts of the public and private sectors, its important for governments to compare their efforts on both fronts with those of other countries.

The U.S. is expected to be the global frontrunnerin quantum computing, relying on its tech giants, such as IBM and Google, to invent quantum systems as well as numerous start-ups that are developing software applications. The latter attract almost 50% of the investments in quantum computing by venture capital and private equity funds, according toBCG estimates. Although the U.S. government has allocated only $1.1 billion, it has created mechanisms that effectively coordinate the efforts of all its agencies such as the NIST, DARPA, NASA, and NQI.

Breathing down the U.S.s neck: China, whose government has spent more on developing quantum systems than any other. . Those investments have boosted academic research, with China producing over 10% of the worlds research in 2021, according toour estimatessecond only to the U.S. The spillover effects are evident: Less than a year after Googles quantum machine had solved in minutes a calculation that would have taken supercomputers thousands of years to unravel, the University of Science and Technology of China (USTC) had cracked a problem three times tougher. As of September 2021, China hadnt spawned as many startups as the U.S., but it was relying on its digital giants such as Alibaba, Baidu, and Tencent to develop quantum applications.

Trailing only the U.S. and China, the European Unionsquantum computing efforts are driven by its member states as well as the union. The EUsQuantum Flagshipprogram coordinates research projects across the continent, but those efforts arent entirely aligned yet. Several important efforts, such as those ofFranceandGermany,run the risk of duplication or dont exploit synergies adequately. While the EU has spawned several startups that are working on different levels of the technology stacksuch as FinlandsIQM and FrancesPasqalmany seem unlikely to scale because of the shortage of late-stage funding. In fact, the EUs startups have attracted only about one-seventh as much funding as their American peers,according toBCG estimates.

Finally, the U.K. was one of the firstcountries in the world to launch a government-funded quantum computing program. Its counting on itseducational policiesand universities;scholarships for postgraduate degrees; and centers for doctoral training to get ahead. Like the EU, the U.K. also has spawned promising start-ups such asOrca,which announced the worlds smallest quantum computer last year. However, British start-ups may not be able to find sufficient capital to scale, and many are likely to be acquired by the U.S.s digital giants.

Other countries, such as Australia, Canada, Israel, Japan, and Russia are also in the quantum computing race, and could carve out roles for themselves. For instance, Canada is home to several promising startups, such asD-Wave, a leader in annealing computers; whileJapanis using public funds to develop a homegrown quantum computer by March 2023. (For an analysis of the comparative standings and challenges that countries face in quantum computing, please see the recentBCG report.)

Meanwhile, the locus of the quantum computing industry is shifting to the challenges of developing applications and adopting the technology. This shift offers countries, especially the follower nations, an opportunity to catch up with the leaders before its too late. Governments must use four levers in concert to accelerate their quantum sovereignty:

* Lay the foundations.Governments have to invest more than they currently do if they wish to develop quantum systems over time, even as they strike partnerships to bring home the technology in the short run. Once they have secured the hardware, states must create shared infrastructure to scale the industry. The Netherlands, for instance, has set upQuantum Inspire, a platform that provides users with the hardware to perform quantum computations.

* Coordinate the stakeholders.Governments should use funding and influence to coordinate the work of public and private players, as theU.S. Quantum Coordination Office, for instance,does. In addition, policymakers must connect stakeholders to support the technologys development. Thats how the U.S. Department of Energy, for instance, came to partner with the University of Chicago; together, theyve set up anacceleratorto connect startups with investors and scientific experts.

* Facilitate the transition. Governments must support businesss transition to the quantum economy. They should offer monetary incentivessuch as tax credits, infrastructure assistance, no- or low-interest financing, and free landso incumbents will shift to quantum technologies quickly. TheU.K., for instance, hasrecently expanded its R&D tax relief scheme to cover investments in quantum technologies.

* Develop the business talent.Instead of developing only academics and scientists, government policies will have to catalyze the creation of a new breed of entrepreneurial and executive talent that can fill key roles in quantum businesses. To speed up the process, Switzerland, for instance, has helped create amasters programrather than offering only doctoral programs on the subject.

Not all general-purpose technologies affect a countrys security and sovereignty as quantum computing does, but theyre all critical for competitiveness. While many countries talk about developing quantum capabilities, their efforts havent translated into major advances, as in the U.S. and China. Its time every government remembered that if it loses the quantum computing race, its technological independence will erodeand, unlike with Schrdingers cat, theres no doubt that its global competitiveness will atrophy.

ReadotherFortunecolumns by Franois Candelon.

Franois Candelonisa managing director and senior partner at BCG and global director of the BCG Henderson Institute.

Maxime Courtauxis a project leader at BCG and ambassador at the BCG Henderson Institute.

Gabriel Nahasis a data senior scientist at BCG Gamma and ambassador at the BCG Henderson Institute.

Jean-Franois Bobier is a partner & director at BCG.

Some companies featured in this column are past or current clients of BCG.

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The U.S., China, and Europe are ramping up a quantum computing arms race. Heres what theyll need to do to win - Fortune