Differential-phase-shift quantum key distribution based on two nonorthogonal states is described. A weak coherent pulse train is sent from Alice to Bob, in which the phase of each pulse is randomly modulated by $\{0,\pi \}.$ Bob measures the differential phase by a one-bit delay circuit. The system has a simple configuration without the need for an interferometer and a bright reference pulse in Alice’s site, unlike the conventional QKD system based on two nonorthogonal states, and has an advantage of improved communication efficiency. The principle of the operation is successfully demonstrated in experiments.

• Received 13 February 2003

DOI:https://doi.org/10.1103/PhysRevA.68.022317