Quantum cryptography

What is quantum cryptography?

Quantum cryptography is an emerging field that focuses on understanding the vulnerability of our digital information and developing new defense mechanisms that are resistant to the hacking capabilities of quantum computers. It is already a challenge for businesses to address cybersecurity, but the rise of quantum computers - which use quantum physics to enhance their problem-solving abilities - threatens to phase out existing security systems.

What business problems can it address?

Even current quantum computers have been able to deliver exponentially faster results than the most powerful supercomputers. This promises to be a revolution in humanity's ability to solve complex challenges, but it will also bring challenges. Quantum computers can threaten the encryption that has been considered secure for at least 30 years. In a world with mature quantum computers, that buffer can completely disappear. Quantum cryptography, if it can keep up, will help counter these threats.

How does it create value?

"There are few sectors that are not affected by quantum computing in some way," explains Arit Kumar Bishwas, Director of PwC’s Global Innovation Hub. "The good news is that while quantum researchers explore these threats, they are also finding excellent ways to mitigate them, as well as they discover entirely new methods to ensure security in the process." Quantum-safe encryption was first applied to ensure the integrity of local elections in Geneva in 2007. Further experiments in sectors such as telecommunications and finance have made the technology increasingly mature in its promise of a new form of information security. There is now a strong increase in private investments in quantum technologies, with over $2 billion in venture capital that entered the market in both 2021 and 2022. And new quantum encryption standards are already being proposed and negotiated, as both industry and government agencies recognize that the countdown to "Y2Q" has begun.

Who should pay attention?

Anyone responsible for cybersecurity should keep an eye on these new developments in quantum computing. This is especially true for CTOs, as well as cybersecurity and network architecture teams, in sectors such as financial services, banking and capital markets, healthcare, energy, utilities and resources, transportation and logistics, and telecommunications.

How can businesses prepare?

Consider the three pillars of people, processes, and technology to understand the potential magnitude of the risk. Start by developing and maintaining an inventory of cryptographic controls and their potential roles in your business processes to build more security into your organization. At the same time, gain clarity on the standards and protocols used in both your internal and external technology, including those managed by third parties in your ecosystem. Finally, remember that quantum leaps can happen at any time, so invest now in educating people. Ensure that everyone responsible for IT system administration or software development is aware of the quantum threat to cryptography and understands the role they play in addressing it.