Researchers from the University of Vienna have made significant progress towards developing an unconditionally secure and unhackable digital payment system based on quantum mechanics. In their recent publication titled “Demonstration of Quantum-Digital Payments,” the team showcased a groundbreaking method that utilizes quantum entanglement to encrypt payment transactions.
The researchers exploited the unique properties of quantum entanglement, where changes in one entangled photon are instantaneously reflected in its partner, regardless of the distance between them. This property ensured that any attempts to tamper with or modify the transaction would be immediately detectable, providing inherent security. By leveraging the uncertainty principle of quantum mechanics, they created unforgeable quantum cryptograms through the use of entangled photons.
To demonstrate the feasibility of their approach, the team generated entangled photons using a laser process and encoded them with transaction information. These photons were then transmitted through fiber optic cables over a distance of more than 400 meters, successfully completing a digital payment transaction between parties located in different buildings.
Even if a malicious actor attempted to interfere with the transaction, the quantum state of the photons would collapse upon measurement, triggering the generation of a new pair of entangled photons with a completely unique and unforgeable cryptogram.
While the current method takes “tens of minutes” to complete a simple digital payment, the researchers believe this limitation can be overcome. They anticipate that advancements in photon intensity could significantly decrease the transmission time, potentially completing quantum token transactions in under a second.
If realized, this breakthrough has the potential to revolutionize digital payments by providing unparalleled security. However, further research and technological advancements are still necessary to optimize the process and reduce transaction times.
By combining the fields of quantum computing and financial technology (fintech), this research opens up new possibilities for the development of secure digital payment systems. The findings from this study contribute to the advancement of quantum communications and pave the way for the era of quantum fintech, where unconditionally secure financial transactions become a reality.