A new scheme for quantum cryptography, based on a distributed polarization
quantum intensity interferometer, is presented. Two-photon entangled states
generated via the optical nonlinear process of type-II phase-matched spont
aneous parametric down-conversion are used to securely distribute secret cr
yptographic keys. The high contrast and stability of the quantum interferen
ce pattern obtained by using this design renders it superior to the best ex
isting single-photon polarization technique. In addition, the use of high-r
epetition-rate femtosecond pump pulses for down-conversion significantly en
hances the production rate of entangled photon pairs for key distribution.
[S1050-2947(99)50910-4].