Quantum key distribution exploits quantum mechanics to transmit keys between two parties securely. While a key, or a one-time pad, is theoretically unbreakable, the key challenge is getting both parties in a conversation to agree to the same key without the key being intercepted by a third party.
Quantum key distribution uses lasers to transmit the keys. The quantum properties of photons in the beams are coded into binary ones and zeroes. While a third party can intercept the beam, by being observed, the quantum properties change, making the keys useless to an attacker.
A practical application of the technique is secure communication between submarines. Commercial QKD systems are aimed at those with a need for high security, such as the defense industry.
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