Mitsui & Co., Quantinuum, and NEC have completed the world’s first successful trial of quantum tokens, tested over a 10-kilometer fiber-optic network in Tokyo. This collaboration leveraged NEC’s quantum key distribution (QKD) technology to create and transfer unforgeable tokens, which could hold significant potential for sectors requiring high transaction security, such as finance and commodity trading.
Quantum tokens, based on the no-cloning theorem of quantum physics, are designed to prevent forgery, ensuring that each token can only be accessed by the intended recipient. This distinct feature bypasses the need for complex verification steps, providing near-instant transaction settlement and potentially reducing the delays and overhead associated with conventional digital token systems. These tokens meet three properties which are important for digital assets which are unforgeability, local validation, and user privacy. A classical solution cannot guarantee all three properties at once, but a quantum based solution can.
The trial demonstrated quantum tokens’ ability to perform rapid, real-time verification, which could simplify high-speed trading and asset transactions by minimizing the need for third-party verification. This advantage aligns with increasing industry needs for fast and secure digital asset exchanges, where privacy and anti-counterfeiting measures are paramount.
With this successful proof of concept, Mitsui and Quantinuum intend to explore further commercial applications in finance and healthcare, aiming to achieve market readiness for quantum tokens within five years.
For additional information, you can view a press release from Quantinuum here, a Quantum Tokens white paper here, and a short video here.
November 18, 2024
