Does any body know it this problem is based on any real world problems.
i.e. encription, etc
This problem was designed by one of the Intel black belts. I met him at the conference and he said it was based on an AVX (big brother of SSE) project he was working on at the time. He didn't elaborate on his own project but said that initially the problem consisted only of 8 bit modular arithmetic. When he realized that it could be solved analytically (i.e. without simulation) he added the 32 bit add every 37th cycle. Even then he feared that a contestant would figure out an analytic solution.