IBM researchers said on Wednesday they have demonstrated a calculation that could be used to break complicated codes, marking a small step in the advance of quantum computing, a technology based on quantum mechanics. IBM scientists will publish details in the scientific journal Nature on Thursday of the demonstration of "Shors Algorithm," a method of factoring numbers that was developed in 1994 by AT&T scientist Peter Shor. It was that algorithm, and the promise it holds for its ability to break large encryption codes, that spurred interest in quantum computing in the 1990s.
http://www.wired.com/news/technology/0,1282,49268,00.html
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