Nanotechnology involves engineering functional systems at the molecular scale using techniques and tools to construct items from the bottom up. It uses nanofabrication to manipulate and integrate atoms and is of interest to computer engineers as it enables super-high density microprocessors and memory chips. There are two approaches - top-down uses larger tools like lithography to create smaller devices, while bottom-up relies on molecular recognition and self-assembly of smaller building blocks. Current applications include using carbon nanotubes as transistors for faster and more efficient computers, as well as research into quantum computing using qubits to store and transmit data exponentially faster than silicon.