Security
The totally random solution Exchanging virtual secrets depends on the production and exchange of keys. Once two parties have shared a key, it can be used to encode messages which only they can decrypt. In the modern era, random number generators are used to create these keys – whether they be for private or public use. The challenge, however, is that if a key is generated too predictably then the security they offer is compromised.
Classical random number generators fundamentally depend on deterministic processes. For example, whilst a dice roll may offer statistical randomness – the more known about the dice, throw and environment the more predictable the outcome. Quantum physics, however, is full of non-deterministic and truly random phenomena. For example, the number of photons emitted, detected, or deflected by a beam-splitter. Quantum random number generators (QRNG) can harness this property to increase the quality of keys generated for cyber security. Optical approaches to QRNG on the chip-scape have already been commercialized – and even adopted into the consumer market – with IDQuantique
seeing their hardware integrated into a Korean specific model of a Samsung smartphone. However, competition for market share is increasing, with multiple start-ups entering the industry. These players are not only finding success outside of the security industry, for example with gambling and gaming, but are also expecting cryptography market demands to rise as industry standards become clearer. Going forward, innovation to improve entropy, generation rates and power consumption are set to continue, with these differentiators already prompting some significant stake holder partnerships in 2024, such as Quantum Dice and BT. However, QRNG alone doesn’t offer complete protection from data-hackers, and for this a more complex solution for key distribution may be required.
Quantum key distribution – friend or foe?
It is well understood that quantum states cannot be ‘cloned’, and that the simple act of observation causes quantum properties to change. Therefore, if two parties transmit a quantum state between one another, eavesdropping can
instantaneously be detected. This is the principle behind quantum key distribution (QKD). As with QRNG, quantum states are encoded within photons. QKD transmitter and receiver pairs connected with optical fibre can use combinations of specialist detectors, filters, and algorithms to convert quantum states to an entirely secret key. QKD has already begun to see some commercial success, with products from IDQuantique and Toshiba used within pilot schemes and metropolitan scale networks. Multiple challenges for this technology do remain. Significant limitations on network scalability to date largely limits the end- users interested to governments and some financial institutions. Cost also remains a barrier to adoption, with installation of transmitter–receiver pairs easily costing more than a million dollars. Yet as global innovation to expand scalability continues, including chip-scale QKD, the addressable markets could expand, particularly in light of trends such as V2X and autonomy in the automotive sector.
In the near term, however, concern is also rising as to the limitations of QKD compared with PQC, at least for near-term
protection. The time to transition between cryptography schemes is a multi-year process, and most experts agree that relying purely on QKD now would pose significant risks.
Moreover, outside of the quantum industry, ethical debate about encryption is ongoing; for example, regarding how rights to data access should vary between law-enforcement, government, and social media companies.
Market outlook
Overall, arguably the riskiest decision of all for network managers today would be to remain ignorant of the oncoming power of quantum communication technology entirely. Similarly, from a materials and supply chain perspective, the opportunity within the quantum communication hardware market is unlikely to solely depend on a Q-Day like event to find success. Now is the time to engage and learn more about this emerging industry – whether it be to ‘shore up’ protection of valuable virtual assets against it, or indeed to leverage it for a competitive advantage.
www.IDTechEx.com/QuanComm
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