Researchers implement 3-qubit Grover search on a quantum computer
phys.org
phys.org
1. Grover's algorithm is applicable to symmetric cryptosystems, like AES. It searches for secret keys in a quantum-optimal manner. Shor's algorithm is the much more serious threat which endangers asymmetric (public-key) cryptosystems like RSA. It uses the quantum Fourier transform to attack integer factorization and discrete logarithm problems.
2. This 3-qubit implementation corresponds to 2^3 items; it is still extremely far off from being practically usable against AES-128. Moreover, Grover's algorithm can't be credibly used to break AES-256, as it improves the search time by approximately halving the number of items to be searched (i.e. AES-256 is reduced to 128 bits of security, AES-128 is reduced to 64, etc).
No, "halving the number of items to be searched" would be a constant factor (1/2) change, which would be trivial. Computers get that much faster in a year.
Rather, using Grover brute search to crack a hash reduces the effective number of items to try by a square root. Each bit of AES increases cracking time by a factor of 2, which is why decreasing the cracking time by a square root is equivalent to halving the number of bits of security: sqrt(2^N) = 2^(N/2)
Edit: just to be clear: one half of 2^N is just 2^(N-1).
2^20 = 1048576