We have designed and built a free space quantum cryptography system. It operates using weak laser pulses with polarization modulation by acousto-optic switching. The system also incorporates full key sifting and error correction between computers connected by a serial port. We have used this system to exchange keys over ranges up to 1.9km with absolute security. The system is robust against transmission (and diffraction) losses up to 20 dB. Building from this initial result we analyse the feasibility of exchanging keys to a low earth orbit satellite.
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Rarity et al. (2001) studied this question.
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