Canadian startup company D-Wave demonstrated a 16-qubit quantum computer. The computer solved a sudoku puzzle and other pattern matching problems. The company claims it will produce practical systems by 2008. Skeptics believe practical quantum computers are still decades away, that the system D-Wave has created isn't scaleable, and that many of the claims on D-Wave's Web site are simply impossible (or at least impossible to know for certain given our understanding of quantum mechanics).
If functional quantum computers can be built, they will be valuable in factoring large numbers, and therefore extremely useful for decoding and encoding secret information. If one were to be built today, no information on the Internet would be safe. Our current methods of encryption are simple compared to the complicated methods possible in quantum computers. Quantum computers could also be used to search large databases in a fraction of the time that it would take a conventional computer. Other applications could include using quantum computers to study quantum mechanics, or even to design other quantum computers.
But quantum computing is still in its early stages of development, and many computer scientists believe the technology needed to create a practical quantum computer is years away. Quantum computers must have at least several dozen qubits to be able to solve real-world problems, and thus serve as a viable computing method.
http://computer.howstuffworks.com/quantum-computer2.htm
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