Many International banks have taken initiatives on how to Quantum Proof their transactions. Quantum computers, should they reach sufficient size and power, may be able to break the encryption schemes widely used today to ensure secure financial transactions and data. This makes quantum computing one of the most important cybersecurity threats facing the financial system, potentially exposing all financial transactions and much of our existing stored financial data to attack.
While it is still unclear when quantum computing technology might be adopted on a large scale, its potential as a cyber threat to the financial system is already a matter of concern. Malicious actors can intercept and store confidential, classically encrypted data with the intention of decrypting it later when quantum computers become powerful enough to do so. This means that data stored or transmitted today are, in fact, exposed to "harvest now, decrypt later" attacks by a future quantum computer.
Hence, the banking systems are gearing to use one traditional public key algorithm implemented alongside several quantum-resistant algorithms in a hybrid cyphering mode, with the aim of maintaining the confidentiality of messages sent across two distanced IT systems.
Recently, researchers from the University of Vienna have tackled this dilemma by devising an unconditionally secure system for conducting transactions in such scenarios. This solution merges contemporary cryptographic methods with the inherent properties of quantum light.
A research team led by Prof. Philip Walther from the University of Vienna has shown how the quantum properties of light particles or photons can ensure unconditional security for digital payments. In an experiment, the researchers demonstrated that each transaction cannot be duplicated or diverted by malicious parties and that the user’s sensitive data stays private.
For enabling absolutely secure digital payments, the scientists replaced classical cryptographic techniques with a quantum protocol exploiting single photons. During the course of a classical digital payment transaction, the client shares a classical code – called cryptogram – with his payment provider (e.g. a bank or credit card company). This cryptogram is then passed on between the customer, merchant, and payment provider. In the demonstrated quantum protocol this cryptogram is generated by having the payment provider sending particularly prepared single photons to the client.
For the payment procedure, the client measures these photons whereby the measurement settings depend on the transaction parameters. Since quantum states of light cannot be copied, the transaction can only be executed once. This, together with the fact that any deviation of the intended payment alters the measurement outcomes, which are verified by the payment provider, makes this digital payment unconditionally secure.
The researchers successfully implemented quantum-digital payments over an urban optical fiber link of 641m, connecting two university buildings in downtown Vienna. Digital payments currently operate within a few seconds. “At present, our protocol takes a few minutes of quantum communication to complete a transaction. This is to guarantee security in the presence of noise and losses” says Peter Schiansky, first author of the paper.
“However, these time limitations are only of technological nature” adds Matthieu Bozzio, who is convinced that “we will witness that quantum-digital payments reach practical performance in the very near future”.
While it is still unclear when quantum computing technology might be adopted on a large scale, its potential as a cyber threat to the financial system is already a matter of concern. Malicious actors can intercept and store confidential, classically encrypted data with the intention of decrypting it later when quantum computers become powerful enough to do so. This means that data stored or transmitted today are, in fact, exposed to "harvest now, decrypt later" attacks by a future quantum computer.
Hence, the banking systems are gearing to use one traditional public key algorithm implemented alongside several quantum-resistant algorithms in a hybrid cyphering mode, with the aim of maintaining the confidentiality of messages sent across two distanced IT systems.
Recently, researchers from the University of Vienna have tackled this dilemma by devising an unconditionally secure system for conducting transactions in such scenarios. This solution merges contemporary cryptographic methods with the inherent properties of quantum light.
A research team led by Prof. Philip Walther from the University of Vienna has shown how the quantum properties of light particles or photons can ensure unconditional security for digital payments. In an experiment, the researchers demonstrated that each transaction cannot be duplicated or diverted by malicious parties and that the user’s sensitive data stays private.
For enabling absolutely secure digital payments, the scientists replaced classical cryptographic techniques with a quantum protocol exploiting single photons. During the course of a classical digital payment transaction, the client shares a classical code – called cryptogram – with his payment provider (e.g. a bank or credit card company). This cryptogram is then passed on between the customer, merchant, and payment provider. In the demonstrated quantum protocol this cryptogram is generated by having the payment provider sending particularly prepared single photons to the client.
For the payment procedure, the client measures these photons whereby the measurement settings depend on the transaction parameters. Since quantum states of light cannot be copied, the transaction can only be executed once. This, together with the fact that any deviation of the intended payment alters the measurement outcomes, which are verified by the payment provider, makes this digital payment unconditionally secure.
The researchers successfully implemented quantum-digital payments over an urban optical fiber link of 641m, connecting two university buildings in downtown Vienna. Digital payments currently operate within a few seconds. “At present, our protocol takes a few minutes of quantum communication to complete a transaction. This is to guarantee security in the presence of noise and losses” says Peter Schiansky, first author of the paper.
“However, these time limitations are only of technological nature” adds Matthieu Bozzio, who is convinced that “we will witness that quantum-digital payments reach practical performance in the very near future”.
