Investors Pumped $608 Million Into Bitcoin (BTC) and Cryptocurrency Funds in Record Year, Says Hedge Fund Giant Grayscale – The Daily Hodl

Wall Streets interest in the Bitcoin and cryptocurrency markets is booming, according to the digital asset manager Grayscale.

The firm says 2019 was its biggest year on record, with the yearly investment into its products reaching $607.7 million.

That number surpasses the cumulative investment from the last five years combined. The total investment across Grayscales products now stands at $1.17 billion.

Grayscale says its investor base expanded by about 24% in 2019, with new clients accounting for $146.9 million.

The firm offers exposure to Bitcoin through its flagship product, the Grayscale Bitcoin Trust (GBTC). It also offers altcoin trusts, including Ethereum, XRP, Bitcoin Cash, Litecoin, Stellar, Zcash, Ethereum Classic and Horizen.

Grayscale says 36% of clients now have allocations to multiple products, with the remaining 64% invested in a single product.

A recent report from Charles Schwab found that Grayscale Bitcoin Trust is the fifth most-held equity holding by its millennial investors, ahead of Disney and Netflix.

Featured Image: Shutterstock/LevLev

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Investors Pumped $608 Million Into Bitcoin (BTC) and Cryptocurrency Funds in Record Year, Says Hedge Fund Giant Grayscale - The Daily Hodl

Cryptocurrency Market Update: Bitcoin bulls hit the pause button, altcoins follow the lead – FXStreet

Cryptocurrency bulls need some rest after a sharp rally that took some coins to multi-months highs. Bitcoin and major altcoins have been under pressure on Thursday; however, the move can still be qualified as a natural correction from overbought levels. The cryptocurrency market capitalization decreased to $239 billion, while an average daily trading volume reduced to $130 billion from $176 billion this time on Wednesday. Bitcoin's market dominance is jumped to to 66.5%.

The largest cryptocurrency by market capitalization retreated from the recent high of $8,900 on Wednesday and retreated to $8,737 by press time. The coin has stayed mostly unchanged on a day-to-day basis and since the beginning of the day. Despite the retreat, BTC/USD is still trading above critical $8,500, which means that the upside momentum maybe resumed after a short pause. The short-term trend remains bullish, however, the volatility is low

Ethereum hit $171.67 on Wednesday only to drop back to $163.00 by the time of writing. The strong downside move was caused by technical correction on the market. ETH/USD has lost about 2% since the beginning of the day. From the short-term perspective, the coin is moving within a bullish trend amid low volatility.

Ripple retreated to $0.2270 after a short-lived move above $0.2400. The third-largest digital asset has been losing ground after the support of $0.2300 gave way. XRRP/USD has lost over 3% since the beginning of Thursday, moving in sync with the market. The short-term trend is bullish.

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Cryptocurrency Market Update: Bitcoin bulls hit the pause button, altcoins follow the lead - FXStreet

$1.4B in illicit Bitcoin was laundered via Binance and Huobi last year, report says – The Next Web

Blockchain researchers traced $2.8 billion in illicit Bitcoin BTC believed to be laundered on cryptocurrency exchanges in 2019 with over 50 percent ($1.4B) washed through major trading hubs Binance and Huobi.

Binance and Huobi lead all exchanges in illicit Bitcoin received by a significant margin, said cryptocurrency analysis unit Chainalysis. That may come as a surprise given that Binance and Huobi are two of the largest exchanges operating, and are subject to KYC regulations.

[Read:Greece suspends extradition of alleged launderer for Bitcoin stolen from Mt Gox]

Chainalysis found more than 300,000 individual accounts on those exchanges had touchedBitcoin sent from criminal sources last year, and manually identified a list of the top 100 rogue over-the-counter (OTC) cryptocurrency brokers they believe to be money launderers.

[] A small segment of these accounts is extremely active. The 2,196 accounts in the three highest-receiving buckets received a total of nearly $27.8 billion worth of Bitcoin in 2019, said the firm.

The amount of illicit cryptocurrency touched by the Rogue 100 is no joke: they reportedlyreceived more than $3 billion worth of Bitcoin in 2019, and accounted for as much as 1 percent of all Bitcoin activity in any given month.

OTC brokers serve as middle men for those looking to transact away from public exchanges. They typically facilitate clients by negotiating trades for larger amounts of cryptocurrency for set price.

Chainalysis described OTC brokers as a crucial source of liquidity in the cryptocurrency market, citing evidence provided by data firm Kaiko that estimates theyre actually involved in the majority ofall cryptocurrency trade volume.

Theres a multitude of reasons for enlisting OTC brokers, many legitimate. Market makers andwhales with fat stacks of digital cashoften trade in this way to avoid influencing the overall cryptocurrency market with their big movements.

Some OTC brokers specialize in laundering money for criminals drawn to their services as they can have much lower know-your-customer requirements than online exchanges, Chainalysis explained.

Seventy of the top 100 addresses linked to OTC brokers laundered Bitcoin exclusively though Huobi. In total, those 70 brokers reportedly received more than $194 million from criminal entities last year.

Researchers however posited it could be possible that some had additional accounts on Binance or other exchanges.

Keep in mind, the Rogue 100 only represents OTC brokers weve manually identified as money launderers over the course of our investigations on behalf of Chainalysis clients, said the firm. We think its extremely likely that some percentage of the other highly-active Binance and Huobi accounts taking in illicit funds also belong to corrupt OTC brokers weve yet to identify.

Last month, Hard Fork reported thatPlusToken, a Chinese Ponzi scheme worth some $2.6 billion, may have been responsible for keeping the Bitcoins price down. Chainalysis noted that many of theRogue 100played a substantial role in the scam.

As for what Binance is doing to mitigate exposure to money-laundering OTC brokers, spokesperson assured the firm that it was aware of the growing trend and movements of illicit funds, and that its platform is compliant with KYC requirements in each jurisdiction in which it operates.

While Chainalysis did clarify that criminally-connected cryptocurrency represents a small fraction of total amountreceived by Binance and Huobi, the amount is still significant, with thetop 31 suspicious accounts alone exposed to more than $163 million in Bitcoin linked to dodgy sources.

Published January 16, 2020 14:00 UTC

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$1.4B in illicit Bitcoin was laundered via Binance and Huobi last year, report says - The Next Web

Most Awaited Indian Cryptocurrency Case Turns Optimistic – Cryptocurrency Regulation – Altcoin Buzz

After a series of adjournments, the Indian Crypto vs Reserve Bank Of India (RBI) case is being heard by a fresh 3-judge bench. The hearing started on 14th January as the Supreme Court of India resumed the session post the winter break. Unlike the last couple of hearings, judges want to take their time.

Today happens to be the third day of the cryptocurrency trial, the start of which was slightly disappointing.The Crypto Vs RBI Case was supposed to be the first matter to be discussed on 14th Jan. But it was pushed down the queue.

The dismayed crypto enthusiasts speculated about a new hearing date. To everyones surprise, the Crypto Vs RBI case hearing started in the second half of the day. The judges pointed out that this is due to the fact that the trial is a lengthy one. Thus, it could have blocked other important matters. To avoid such a scenario, the case was pushed to the afternoon session.

IAMAI counsel Ashim Sood opened the case by pointing out the drawbacks of the draft bill presented to the Government of India. He explained the concept of blockchain to the panel. Additionally, he explained how the new technology is becoming common in the banking sector.

He also emphasized that the usage of the term currency with virtual currencies is being misunderstood as a threat to the Indian monetary system.

Counsel Sood strongly questioned the RBIs power to ban crypto.

To remind, the RBI has been pointing fingers at the price volatility of the cryptocurrency and claims that consumer rights are at risk. To counter this Mr. Sood bought the panels attention to the design of the stock market, which exhibits similar volatility.

According to Sood, crypto price volatility should be the SEBIs concern, not the RBIs. Likewise, the tax invasion issues need to be brought up by the CBDT.

Furthermore, he stated that crypto is a commodity, and the RBI has no power in this realm. Thus the RBI does not have enough authority to execute a crypto ban.

The RBIs plea to ban crypto seems to be turning baseless. As per the counsel, it has no material at hand to form such a strong opinion against crypto.

Furthermore, the counsel strongly questioned the basis which the RBI relied on when enforcing the Banking Regulation Act. To remind, the act restrained Indian Banks from operating deposit/withdrawal accounts for crypto exchanges.

Counsel Sood argued the RBI should have attempted to regulate crypto instead of placing a ban. Furthermore, he completely disagrees with the RBIs statement that its impossible to do it. He supports his point of view by citing examples of countries like Japan, Australia, Germany and Italy that have been successful in regulating crypto.

The panel questioned counsel whether crypto threatens the monetary system that the RBI protects. It seems he was ready to face the question. Accordingly, he completely negated the chances of crypto threatening the Indian Monetary system in the near future.

He added that IAMAI is defending the case of de-anonymous crypto, which always requires KYCs. Hence the chances of funding terrorism and money laundering are remote.

The counsel was cornered by some questions posed by the panel of judges. According to the judges, cryptocurrency is both a commodity and a medium of exchange, as per its definition. If thats so, then how does it not interfere with the monetary system?

The panel also questioned the utility of cryptocurrencies like BTC as a commodity. Counsel Sood is yet to answer these questions in detail.

Judging by the running of the trial, it seems IAMAI has a strong case, and we might soon hear some good news.

Previously, we explained how to buy cryptocurrency in India and what is happening with blockchain in India.

Stay tuned to get the latest of the Crypto Vs RBI Case.

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Most Awaited Indian Cryptocurrency Case Turns Optimistic - Cryptocurrency Regulation - Altcoin Buzz

Government Officials in Uzbekistan Have Major Plans for Cryptocurrency Mining – NullTX

The cryptocurrency industry has suddenly become of great interest to a lot of countries. So much even that Uzbekistan now wants to legalize crypto mining through a nationalized venture.

It is the first time the government of Uzbekistan introduces such a bold venture.

Their vision is quite simple to explain.

Rather than prohibiting crypto activity in the country, the government of Uzbekistan aims to legalize cryptocurrency, primarily the mining aspect.

This will be done through a national mining pool, as well as a national digital asset exchange.

This proposal was put forward by the National Agency for project Management, or NAPM.

There will be benefits for people who use the nationalized mining pool.

They will allegedly be able to obtain electricity at a discounted rate.

It is very similar to how some countries provide government-subsidized electricity in certain regions.

Where the electricity will come from exactly, remains unclear at this time.

Regarding the digital asset exchange, it will be designed primarily for the miners themselves.

Through this platform, they can sell any coins they minted and want to convert to local fiat currency.

It is expected that this trading platform will launch as early as next week under the Uznex banner.

All of these changes can have a prominent impact on the cryptocurrency industry across Uzbekistan.

Image(s): Shutterstock.com

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Government Officials in Uzbekistan Have Major Plans for Cryptocurrency Mining - NullTX

Venezuela targets production boost with cryptocurrency sales – Upstream Online

Venezuela is targeting a boost in oil production this year while it moves to sell barrels of crude from storage using cryptocurrency, President Nicolas Maduro said in his annual address.

Maduro said before the National Constituent Assembly (ANC) that he wants Venezuela's crude production to more than double in 2020, to 2 million barrels of oil per day from current levels of nearly 1 million bpd.

The Opec producers output has steadily declined since the 1990s level of more than 3 million bpd, and this malaise has worsened in recent years with the impact of US sanctions, reaching just 714,000 bpd in December 2019, according to Opec figures.

In his speech, Maduro asked oil workers, national and international companies as well as investors for their support in helping Venezuela regain its productive capacity through the oil industry.

To do this, the Venezuelan leader said that the government's pseudo-cryptocurrency known as the Petro has been designated as the official primary currency for all transactions by state-owned entities, including national oil company PDVSA.

Maduro decreed the sale of 4.5 million barrels of undeveloped Orinoco heavy crude reserves priced in Petros from the certified physical reserve of 30 million barrels currently maintained by PDVSA but did not name the buyers or the dates of the transactions.

He said the goal is to eventually sell PDVSA's entire oil production in Petros.

We are preparing for a second phase that will allow more efficient use of cryptocurrency, Maduro said.

However, US sanctions, aimed at toppling Maduro in favor of US-backed opposition leader Juan Guaido, include a prohibition on Petro transactions.

In his speech, Maduro acknowledged that US sanctions hurt the country in 2019, but he said they have failed because he remains in power and the worst of the crisis has passed.

Venezuela's own traditional currency, the bolivar, is nearly worthless and has been effectively eclipsed by the dollar in many commercial transactions inside the country.

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Venezuela targets production boost with cryptocurrency sales - Upstream Online

Bitcoin rises as cryptocurrency has its best January since 2012 – SiliconANGLE News

Bitcoin has continued its strong form this month, teasing $9,000 briefly in its best January since 2012, despite an apparent easing of Middle East tensions that werepreviously attributed to its increasing price.

Bitcoin is up 21% since the beginning of the year, and some experts now claim it could double in price by the end of the year. Bitcoin was trading at $8,654.71 as of 10 p.m. EDT, down 1.6% over the last 24 hours but still its highest price since mid-November.

CNBC reportedtoday that the price increase is being driven by the launch of CME Group Inc. bitcoin futures in December along with the forthcoming bitcoin halving taking place in May. Halving isa processby which the reward for mining bitcoin is halved, making the production of new coins more difficult often causing bitcoins price to surge.

On debut, the CME bitcoin futures did not find a willing audience, but in the space of a month, the futures contracts have become more popular. Over 1,000 bitcoin futures contracts were traded in the last day covering options ranging from January through to December. The options also hit a new transaction high per dollar value Jan. 14. The futures contracts are particularly notable as they are settled in bitcoin, driving additional demand.

Increasing demand for CME bitcoin futures also reflects growing acceptance of bitcoin and bitcoin-related products among institutional investors. A recent survey of financial advisors found that the percentage looking to allocate cryptocurrency as an asset is expected to more than double in 2020, from 6% to 13%.

The bitcoin halving in May will see the supply of new bitcoin available through bitcoin mining halved, hence the name. A halving is triggered every 210,000 blocks on the bitcoin blockchain. As Cointelegraph explains by way of analogy, its a bit like gold and gold mining, there being afinite supply of gold with mining becoming more difficult over time.

The halving also occurs to prevent all bitcoin from being immediately mined. Bitcoin has a maximum 21 million coins, with 18 million currently in circulation. By making the process harder, all of those coins wont be mined out.

The reduction in the ability to mine bitcoin at the same rate also produces scarcity in that less bitcoin is coming into circulation, thus driving up the price.

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Bitcoin rises as cryptocurrency has its best January since 2012 - SiliconANGLE News

The Quantum Computing Era Is Here. Why It MattersAnd How It May Change Our World. – Forbes

IBM Q System One

Hyper-accurate long-term weather forecasting. Life-saving drugs discovered through deep study of the behavior of complex molecules. New synthetic carbon-capturing materials to help reverse climate change caused by fossil fuels. Stable, long-lasting batteries to power electric vehicles and store green energy for the utility grid.

It may read like an ambitious wish list. But many scientists predict that the emerging era of quantum computing could lead to breakthroughs like these, while also tackling other major problems that are beyond reach of our current computing regime.

Quantum computing is not a new idea. But its only been in recent years that workable technology has begun to catch up to the theory.

IBM in 2016 made a quantum computer available to the public by connecting it to the clouda true turning point in the development of this technology by enabling outside researchers and developers to explore its possibilities. And the industry took a major stride in September 2019 with the opening of IBMs Quantum Computation Center. That fleet of 15 systems includes the most advanced quantum computer yet available for external use.

Scientists are tantalized by the possibilities. One analyst predicted quantum will be as world altering in the 2020s as the smartphone was in the decade just ended.

The Quantum Computation Center offers about 100 IBM clients, academic institutions and more than 200,000 registered users access to this cutting-edge technology through a collaborative effort called the IBM Q Network and the rapidly growing community around Qiskit, IBMs open-source development platform for quantum computing. Through these efforts, IBM and others are exploring the ways quantum computing can address their most complicated problems, while training a workforce to use this technology.

Facilitating education and developing the next-generation workforce is a big focus for IBM. That includes spurring access to Qiskit and educational tools like the Coding With Qiskit video series that has generated more than 1.5 million impressions and over 10,000 hours of content consumed by users.The company has also released an open source textbook written by experts in the field, including several from IBM Research, as well as professors who have used some of the material in their own university courses.

Q Network partners include ExxonMobil, Daimler, JPMorgan Chase, Anthem, Delta Airlines, Los Alamos National Laboratory, Oak Ridge National Laboratory, Georgia Tech University, Keio University, Stanford Universitys Q-Farm program and Mitsubishi Chemical among dozens of others.

Last year IBM announced partnerships with the University of Tokyo and the German research company Fraunhofer-Gesellschaft, which will greatly expand the companys already broad network of quantum researchers globally. The history of computing tells us that creative people around the world will find uses for these systems that no one could have predicted.

Katie Pizzolato

At this stage, its difficult to predict what kind of impact quantum will have on employment or the economy. But the research firm Gartner projects that, by 2023, 20 percent of organizations will be budgeting for QC projects, up from less than 1 percent in 2018.*

How do we get to the quantum future? asks Katie Pizzolato, Director of Applications Research within the IBM Q Network. By building the most advanced quantum systems and a developmental platform and making it available to the world.

How does quantum differ from classical digital computing? Conventional computers use transistors that can only store information in two electrical statesOn or Offwhich binary computer code represents as 1 or 0. These are the binary digits, or bits, of classical computing.

Quantum computing is an altogether different beast. It derives its origins from the field of quantum physics, which emerged in the early 20th century when scientists began studying the behavior of subatomic particles.

What they discovered shocked many of them. Simply put, subatomic particles can exist in two places, or two states, at the same time, defying previously accepted laws of the physical world. The term for this is superposition. Researchers also discovered that particles separated by distances are able to share information instantaneously, faster than the speed of light. This is called entanglement.

If this sounds strange and implausible, thats because it is. Niels Bohr, one of the scientists who pioneered the field of quantum mechanics, quipped that anyone who is not shocked by quantum theory doesn't understand it.

This subatomic reality has profound implications for computing. The binary bits used by conventional computersthose 0s and 1slimit the kind of task classical computers can perform, and the speed at which they can do those tasks.

Qubits are the basis for quantum computers. They transcend this 1 or 0 binary limitation. Unlike bits, qubits can exist in multiple states simultaneously. This gives them the potential to processexponential amounts ofinformation.

A quantum machine with just a couple of qubits can process only about as much information as a classical 512-bit computer. But because of the exponential nature of the platform, the dynamic changes very quickly. Assuming perfect stability, 300 qubits could represent more data values than there are atoms in the observable universe. This opens the opportunity to solve highly complex problems that are well beyond the reach of any classical computer.

Dario Gil

A beauty of quantum computers is that they will offer a more subtle way of thinking about problems that goes beyond binarythat goes beyond simple 0 or 1, Yes or No, True or False, says Dario Gil, the Director of IBM Research. That doesnt mean there wont be specific answers in the end. But quantum computing will make it possible to confront many of the worlds most complex problems that are beyond the ability of classical binary computing to quickly solve.

What can quantum computing do for us?

Quantum computers will be orders of magnitude more powerful than anything we have today. But what problems will they solve? What are scientists doing with them now?

Its generally agreed that most important quantum applications are years away. But researchers say some promising applications stand out:

Climate change

Quantum computing could lead to a novel yet ambitious plan to reverse the negative impacts of climate change, by helping find efficient ways to remove carbon from the atmosphere.

To do that, scientists require a better understanding of the carbon atom and how it interacts with other elements. Researchers need to be able to observe and model the way each carbon atoms eight orbiting electrons might interact with the electrons of an almost infinite variety of other molecules, until researchers find the combination that can best bind the carbon.

Batteries to store more electricity for clean-energy uses

One fundamental building block of our clean-energy future will be batteries. Todays batteries lose power too quickly.They also cant hold enough charge to meet increasing demands. And at times, theyre unstable. Todays most-used battery type, lithium-ion, is dependent on cobalt, a metal whose global supplies are dwindling.

Well need better batteries for applications like powering electric vehicles. Utility companies will need them to store solar and wind energy, for example, for use when the sun isnt shining or the wind isnt blowing.

We need to find a fundamentally different chemistry to create the batteries of the future, Pizzolato says. Quantum computing could let us effectively peer inside the batteries chemical reactions, to better understand the materials and reactions that will give the world those better batteries.

New insights into chemistry

Learning more about chemical reactions on the atomic level could also lead to breakthroughs in pharmaceuticals, or materials like energy-efficient fertilizer (currently a massively energy-intensive endeavor, and a major contributor to carbon emissions).

The catalysts that spark these sorts of discoveries are the essence of nearly all progress in chemistry. But because of the infinitely complex ways in which atoms interact with each other, almost all chemistry breakthroughs have come about through accident, intuition or exhausting numbers of experiments. Quantum computing could make this work faster and more methodical, leading to new discoveries in medicine, energy, materials and other fields.

Portfolio management

Its no surprise that that financial institutions are exploring the use of quantum to balance portfolios and pricing options, the instruments used for hedging risk. Because of the complexity of processing a large number of continually changing variables it often takes a full day to come to a correct price.

Quantum promises to make such calculations in a matter of minutes, meaning these derivatives could be bought and sold in near real time. Some banks, like JPMorgan Chase, are already testing quantum computing for this very purpose.

For consumers, whether saving for a home, nurturing a college-savings plan, or building assets for a secure retirement, the peace-of-mind benefits of lower-risk and higher-profit financial products could be significant.

Encryption

Cryptography is a field that has attracted considerable attention in the quantum conversation. So far, much of the discussion has involved the perceived perils of a new class or code breakers. But the counter argumentnew types of more secure data privacy systemscould prove just as compelling.

Either way, true breakthroughs are probably not coming soon.

The most sophisticated data security software now uses complex algorithms to generate passwords that would take classical computers a long time to break. Quantum threatens to completely overturn this paradigm, making current encryption effectively useless. A quantum computer algorithm created a quarter-century ago, called Shors algorithm, could theoretically crack even the most powerful of todays forms of encryption. But Shors algorithm would require fault-tolerant quantum computers that dont yet exist and might still be many years away.

Still, the possibility that current cybersecurity standards could be made obsolete has drawn the attention of governments. The National Institute of Standards and Technology, for example, has a competition to develop new encryption tools resistant to the potential danger.

What Must Happen To Fulfill Quantums Promise?

Despite the flurry of activity and rapidly growing interest in quantum computing, major breakthroughs with real-world applications are probably years away.

One reason is the fickleness of subatomic matter. Qubits are extremely delicate, and even a small disturbance knocks particles out of quantum state. Thats why quantum computers are kept at temperatures slightly above absolute zero, colder than outer space, since matter becomes effectively more stable the colder it gets. Even at that temperature, qubit particles typically remain in superposition for only fractions of a second.

Figuring out how to keep qubits in a prolonged state of superpostition is a major challenge that scientists still need to overcome.

A next major benchmark, Pizzolato says, will be the successful implementation of logical qubits that can maintain a quantum state longer than is now technologically possible. Logical qubits are necessary for fault-tolerancethe true test of quantum computings utility. Like others at IBM, Pizzolato is reluctant to predict a timeline but says the logical qubit is likely to arrive sometime in the next decade.

Another open question is economic: How will the arrival of the Quantum Age impact the number, categories and quality of jobs in the decades to come? Its difficult to say right now how big an industry quantum computing will eventually be. But currently, a major skills gap has left nearly every quantum organization struggling to find qualified recruits.

The National Quantum Initiative, signed into law in early 2019, is meant to provide federal funds to bridge this skills gap. But practical training of the sort made possible by the IBM Q Network will be crucial to a long-term solution.

While the quantum era may develop slowly, its worth remembering that the Internetor an early version of itwas around for decades before it was established as the truly revolutionary force it would become. But like the Internet, the work researchers are doing now on quantum computing lead to a world we cant now imagine.

Only by doing the hard work on quantum computing that we and our partners around the world are doing now, says Pizzolato, can we hope to solve the big global problems that well be facing together in the years ahead.

*Gartner, Top 10 Strategic Technology Trends for 2019: Quantum Computing, March 2019

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The Quantum Computing Era Is Here. Why It MattersAnd How It May Change Our World. - Forbes

AlphaZero beat humans at Chess and StarCraft, now it’s working with quantum computers – The Next Web

A team of researchers from Aarhus University in Denmark let DeepMinds AlphaZero algorithm loose on a few quantum computing optimization problems and, much to everyones surprise, the AI was able to solve the problems without any outside expert knowledge. Not bad for a machine learning paradigm designed to win at games like Chess and StarCraft.

Youve probably heard of DeepMind and its AI systems. The UK-based Google sister-company is responsible for both AlphaZero and AlphaGo, the systems that beat the worlds most skilled humans at the games of Chess and Go. In essence, what both systems do is try to figure out what the optimal next set of moves is. Where humans can only think so many moves ahead, the AI can look a bit further using optimized search and planning methods.

Related:DeepMinds AlphaZero AI is the new champion in chess, shogi, and Go

When the Aarhus team applied AlphaZeros optimization abilities to a trio of problems associated with optimizing quantum functions an open problem for the quantum computing world they learned that its ability to learn new parameters unsupervised transferred over from games to applications quite well.

Per the study:

AlphaZero employs a deep neural network in conjunction with deep lookahead in a guided tree search, which allows for predictive hidden-variable approximation of the quantum parameter landscape. To emphasize transferability, we apply and benchmark the algorithm on three classes of control problems using only a single common set of algorithmic hyperparameters.

The implications for AlphaZeros mastery over the quantum universe could be huge. Controlling a quantum computer requires an AI solution because operations at the quantum level quickly become incalculable by humans. The AI can find optimum paths between data clusters in order to emerge better solutions in tandem with computer processors. It works a lot like human heuristics, just scaled to the nth degree.

An example of this would be an algorithm that helps a quantum computer sort through near-infinite combinations of molecules to come up with chemical compounds that would be useful in the treatment of certain illnesses. The current paradigm would involve developing an algorithm that relies on human expertise and databases with previous findings to point it in the right direction.

But the kind of problems were looking at quantum computers to solve dont always have a good starting point. Some of these, optimization problems like the Traveling Salesman Problem, need an algorithm thats capable of figuring things out without the need for constant adjustment by developers.

DeepMinds algorithm and AI system may be the solution quantum computings been waiting for. The researchers effectively employ AlphaZero as a Tabula Rasa for quantum optimization: It doesnt necessarily need human expertise to find the optimum solution to a problem at the quantum computing level.

Before we start getting too concerned about unsupervised AI accessing quantum computers, its worth mentioning that so far AlphaZeros just solved a few problems in order to prove a concept. We know the algorithms can handle quantum optimization, now its time to figure out what we can do with it.

The researchers have already received interest from big tech and other academic institutions with queries related to collaborating on future research. Not for nothing, but DeepMinds sister-company Google has a little quantum computing program of its own. Were betting this isnt the last weve heard of AlphaZeros adventures in the quantum computing world.

Read next: Cyberpunk 2077 has been delayed to September (thank goodness)

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AlphaZero beat humans at Chess and StarCraft, now it's working with quantum computers - The Next Web

Xanadu Receives $4.4M Investment to Advance its Photonic Quantum Computing Technology – HPCwire

TORONTO,Jan. 16, 2020 Xanadu, a Canadian quantum hardware and technology company has received a$4.4 millioninvestment from Sustainable Development Technology Canada (SDTC). The investment will expedite the development of Xanadus photonic quantum computers and make them available over the cloud. This project will also further the companys overall progress towards the construction of energy-efficient universal quantum computers.

Canadian cleantech entrepreneurs are tackling problems acrossCanadaand in every sector. I have never been more positive about the future. The quantum hardware technology that Xanadu is building will develop quantum computers with the ability to solve extremely challenging computational problems, completing chemical calculations in minutes which would otherwise require a million CPUs in a data center, saidLeah Lawrence, President and CEO, Sustainable Development Technology Canada.

Despite efforts to improve the power efficiency of traditional computing methods, the rapid growth of data centres and cloud computing presents a major source of new electricity consumption. In comparison to classical computing, quantum computing systems have the benefit of performing certain tasks and algorithms at an unprecedented rate. This will ultimately reduce the requirements for electrical power and the accompanying air and water emissions associated with electricity production.

Xanadu is developing a unique type of quantum computer, based on photonic technology, which is inherently more power-efficient than electronics. Xanadus photonic approach uses laser light to carry information through optical chips, rather than the electrons or ions used by their competitors. By using photonic technology, Xanadus quantum computers will one day have the ability to perform calculations at room temperature, and eliminate the bulky and power-hungry cooling systems required by most other types of quantum computers.

The project will be undertaken by Xanadus team of in-house scientists, with collaboration from theUniversity of Torontoand Swiftride. The project will be carried out over three years and will encompass the development of Xanadus architecture, hardware, software and client interfaces with the overall goal of expediting the development of the companys technology, and demonstrating the practical benefits of quantum computing for users and customers by the end of 2022.

We are thrilled by the recognition and support that we are receiving from SDTC for the development of our technology. We firmly believe that our unique, photonic-based approach to quantum computing will deliver both valuable insights and tangible environmental benefits for our customers and partners, said Christian Weedbrook, CEO of Xanadu.

About Xanadu

Xanadu is a photonic quantum hardware company. We build integrated photonic chips that can be used in quantum computing, communication and sensing systems. The companys mission is to build quantum computers that are useful and available to people everywhere, visit http://www.xanadu.aior follow us on Twitter@XanaduAI.

About SDTC

Sustainable Development Technology Canada (SDTC) is a foundation created by the Government ofCanadato advance clean technology innovation inCanada by funding and supporting small and medium-sized enterprises developing and demonstrating clean technology solutions. Follow Sustainable Development Technology Canada on Twitter: @SDTC

Source: Xanadu

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Xanadu Receives $4.4M Investment to Advance its Photonic Quantum Computing Technology - HPCwire