Blockchain and crypto will become even more important in the future than it is today. A consortium of Japanese firms announced the start of work on quantum cryptography to increase the security of stock trading in the country.
Technology is constantly developing and almost everything comes up with a smart version. In addition to the smartphones, watches and televisions we are used to until today, our cars, living spaces and cities keep pace with development.
Unfortunately, not all of the things these developments bring with them are good. One of the most important problems that arise is cyber security. Japanese firms have an idea to make stock trading safer.
Quantum cryptography to stocks
The joint venture initiated by Toshiba, NEC Corp and Nomura Holding in Japan was announced. The aim of this study is to develop a quantum encryption system, which is theoretically impossible to break, to help protect financial institutions from cyber attacks and increasing threats.
In the statement made by the group, it was stated that the new system to be developed is expected to be used in stock trading in a few years. Thus, stock trading will be much safer than it is now.
In quantum encryption, quantum mechanics is technically used instead of traditional codes. If a third party tries to use the data, it is theoretically impossible to reach the data. Because this contact necessarily leaves a mark, and how the data will result is differentiated for the third party. In this method, methods such as quantum entanglement are used.
Financial instruments also get smarter
In fact, since the first academic article that Bitcoin was introduced, the tools used in financial markets are also getting smarter. For example, cryptocurrencies, blockchains used in many areas lead the way in this field. Today, smart contracts are becoming more and more popular.
So it is not surprising that the Japanese enterprise made such a decision for stocks as well. In the future, we will live in a society where paper money is almost completely eliminated and all the wealth in the world is used through smart systems.