Bloomberg Businessweek

Locking Up Secrets With Quantum Keys

Banks and governments are testing next-level encryption to protect their dearest treasures

Commuters inching through rush-hour traffic in the Holland Tunnel between Lower Manhattan and New Jersey don’t know it, but a technology likely to be the future of communication is being tested right outside their car windows. Running through the tunnel is a fiber-optic cable that harnesses the power of quantum mechanics to protect critical banking data from potential spies.

The cable’s trick is a technology called quantum key distribution, or QKD. Any half-decent intelligence agency can physically tap normal fiber optics and intercept whatever messages the networks are carrying: They bend the

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