Quantum Cryptography 101: 9 Applications in 2022

SDT Inc.
8 min readMay 31, 2022

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Quantum Cryptography

While many aspects of quantum computing are still conceptual, the encryption technology enabled by quantum mechanics are already having a profound impact on cybersecurity and privacy. Quantum cryptography ⁠ — also often known as quantum security or quantum encryption ⁠ — refers to the practice of applying quantum mechanics to data encryption and data transmission so that a third-party cannot eavesdrop on communications. (This depiction of Alice, Bob, and Eve demonstrates in-depth how quantum cryptography works).

The complexity of quantum cryptography lies in the very principles of quantum mechanics such as randomness, which uses photons to generate unpredictable and pattern-less true random numbers. Other physics principles and technologies also play a key role in how quantum cryptography works, which will be further explored in this blog. This blog will also discuss the current quantum cryptography market and 9 real-world uses of quantum cryptography available today.

A Closer Look at Current Quantum Cryptography Technology

Data Encryption (Photo by Markus Spiske on Unsplash)

Quantum cryptography is a new type of cryptography that is not just difficult to break but impossible to break. Consider the following: traditional cryptography uses two types of key distribution including a symmetric key and asymmetric key to properly read mathematically scrambled data. Symmetric keys use a single key to both encrypt and decrypt information, and asymmetric keys utilize a public key to encrypt messages and a private key to decrypt them. So whereas, traditional public-key cryptography is based on mathematical computation, quantum cryptography encryption and decryption are done on the basis of quantum mechanics and are much harder to decrypt.

Today, quantum key distribution, or QKD, is one the best-known examples of quantum cryptography. It uses quantum physics to secure the transmission of symmetric encryption keys, specifically by transferring data using photons (transmitted over fiber optic wire) instead of bits to transfer a key between two parties in a way that cannot be copied or intercepted without alerting the sender or receiver. In other words, even if a third-party attempts to intercept the communication, because the photon carrying the key changes the key itself, the key will automatically fail and alert the two parties that their communication is not secure.

In addition to quantum key distribution, another popular cryptographic application that uses quantum properties is quantum-safe certificates, which go hand in hand with post-quantum cryptography. Post-quantum cryptography refers to the development of cryptographic algorithms that protect against attacks by a quantum computer. This field has become increasingly important as quantum computers become commercially available, exposing all public and private keys to massive risk. When that happens, traditional encryption methods will not remain secure. Currently, there are generally three types of digital certificates used for authentication that are relevant to quantum safe cryptography.

These types of quantum-safe certificates adhere to X.509 digital certificate standards, which is fundamental to public key cryptography. Briefly outlined below are the three types according to the encryption algorithm used to create the certificate:

● Quantum-safe certificates use new quantum-safe encryption algorithms which have yet to be standardized.

● Quantum-safe hybrid certificates use both a traditional (RSA or ECC) key and signature, and a quantum-safe key and signature. They will play a critical role when systems using ECC or RSA encryption must migrate to new, quantum-safe cryptographic algorithms.

● Composite quantum-safe certificates also use a combination of existing and quantum-safe encryption algorithms but contain multiple keys and signatures. They serve to counteract instances so that when even any single encryption algorithm is compromised, the entire system remains secure.

All encryption protocols, including those based on quantum computing, require a source of random numbers, but traditional methods of generating random numbers are not truly “random.” As detailed in our last blog, quantum computers offer to improve random number generation. Quantum random number generators (QRNG) are posed to improve cryptography and other computing functions. It is important to note, however, quantum random number generation and post-quantum cryptographic algorithms are not always directly connected.

In other words, the two technologies are not interdependent. In one case, it might make sense to use “classical” randomness for post-quantum algorithms, and in another case, one might use a quantum computer to break cryptography in a way that a classical computer cannot. Nevertheless, both technologies are part of cryptography, but quantum cryptography and QRNG do not require the other or vice versa in order to play significant roles in advancing encryption and security.

Commercialization: 9 Current Applications of Quantum Cryptography

Cybersecurity (Photo by Adi Goldstein on Unsplash)

The global market for quantum cryptography is estimated at US$128.9 Million as of 2022 and is projected to reach a revised size of $291.9 million USD by 2026, growing at a CAGR of 20.8%. Interestingly, the U.S. accounts for 37.5% share in the global market, followed by China which is forecast to reach an estimated market size of $40.6 million USD in 2026.

Although slow to implement quantum technology in business solutions, South Korea produces some of the most cutting-edge quantum research in the world, supporting the country’s push for market dominance in Quantum technology and related fields. Many businesses are looking to implement quantum cryptography solutions to boost network and application security, especially in industries like BFSI (banking, financial services, and insurance), defense, government, healthcare, automotive, and retail.

Quantum cryptography enables secure communication and offers a more sophisticated and second method of encryption and detects eavesdropping. Therefore, many quantum cryptography applications will likely be used to improve security and make transactions, video calls, PoS systems, online voting, and so on more secure. Here are 9 applications of quantum computing and quantum cryptography in use today:

  1. In 2017, Chinese and Austrian researchers engineered the first-ever intercontinental, quantum-encrypted video call “relying on networks of optical fiber, a handful of encryption algorithms, and a $100 million satellite that China launched in 2016,” the only one specifically designed for quantum cryptography.
  2. In March 2021, Hyundai Heavy Industries set up a pilot quantum cryptography network in the communication infrastructure of the world’s largest shipyard in the port city of Ulsan to strengthen the security of its defense technology.
  3. In September 2020, Verizon conducted a trial of quantum key distribution (QKD) in Washington D.C., which showcased how quantum-based technology can strengthen security and protect customer data.
  4. Quantum key distribution (QKD) has been mainly applied by telecom companies, and Korean company SK Telecom has emerged as a leader in this field. Since 2020, Samsung has worked with SK Telecom and its strategic investment in Switzerland-based ID Quantique, a cryptography solutions provider, to release its Galaxy Quantum series. Its soon to be released Samsung Galaxy Quantum 3 will be powered via a chipset with quantum random number generators for the B2C market. This feature will allow consumers to utilize its security features for digital activities such as mobile banking.
  5. Equinix plans to use quantum key distribution (QKD) technology from SK Telecom to secure dedicated lines between its data centers. The two companies have an agreement to develop QKD to ensure private distribution of cryptographic keys. They plan to offer QKD as a service (QaaS) commercially between Equinix data centers.
  6. On April 19, 2022, IonQ and Hyundai Motor Company announced a new project designed to apply quantum machine learning to image classification and 3D object detection for future mobilities. The next phase will see the two companies apply IonQ’s machine learning data to Hyundai’s test environment, which will simulate various real-world scenarios.
  7. On April 28, 2022, U.K. telecom provider BT and Toshiba announced its first trial of a commercial quantum-secured metro network that will block vulnerabilities in encryption. The first customer on that network is EY, a multinational professional services firm.
  8. On May 31, 2022, KIST (Korea Institute of Science and Technology) signed an agreement to transfer QRNG, QKD, and CCU technology for commercialization to SDT and continue working in a joint effort for advances in quantum security and quantum computing in the future.
  9. SDT is bringing quantum random number generation (QRNG) and quantum key distribution (QKD) into its network security offering to boost data protection. The QRNG cryptography will be implemented as a full CCTV and computer vision solution for high-security organizations or enterprises by the end of 2022. Additionally, SDT is launching a full end-to-end edge to cloud solution with QKD and our ECN device (replacing industrial PCs or research lab servers).

Future Implementation of Quantum Cryptography

KIST — SDT Quantum Technology Transfer

Despite its growing applications, quantum cryptography is still in its infancy stages. Below is an overview on the current growth areas of quantum cryptography:

● Photons needed to run quantum cryptography may change polarization in transit, which potentially increases error rates. Further research into reducing error rates is ongoing.

● The maximum range of quantum cryptography is typically between 400 and 500 km, which greatly limits the distance in which quantum cryptography keys can be transmitted. A variety of methods are being implemented to overcome this challenge

● Quantum key distribution requires fiber optic lines which does not come cheap unless there is already usable infrastructure in place.

● Previously, it had been difficult to send keys to two or more locations in a quantum channel. There had been a need for a dedicated channel between source and destinations which carried high costs. SDT is excited to offer QKD on 1 x N topography so that any site can enable QKD-protected data and link with multiple endpoints to easily work with existing IT infrastructure and software.

So, when will quantum cryptography reach widespread commercialization? Some challenges and limitations such as those outlined above still need to be overcome, and that could take years — or decades — to solve. Post-quantum cryptography is also fast approaching, and businesses must be prepared. In the near future, threat actors may be able to leverage these quantum computers and use them to launch new, sophisticated cyber attacks.

As quantum key distribution (QKD) gains traction, it may soon also become the standard to protect against these quantum computing attacks, and we may see quantum cryptography as the new standard for online banking. Quantum cryptography must be different from any encryption system that came before it as we enter into a new era of privacy. Continually learning about quantum computing and how quantum cryptography works is an important step in protecting any business from quantum computing attacks. Stay up to date by following the SDT blog, or check out our new website!

About the Author: Karen is a passionate B2B technology blogger. While studying at Georgia Tech, Karen first grew interested in cybersecurity and has since worked for several security and cloud companies as a global marketer. When she’s not freelance writing, Karen loves to explore new food trends.

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