A Brief History of the Company and What We Sell Today
Quantum security is a confusing marketplace filled with acronyms and subtle nuances. There’s post-quantum cryptography (math based) that also goes by quantum-safe encryption, quantum-proof encryption, quantum-resistant encryption and so on. Then there’s the physics- based approach, the most popular form being Quantum Key Distribution (QKD), also referred to as quantum communications or quantum encryption, but there’s also Quantum Number Random Generated (QRNG) keys or quantum-based/quantum-enhanced encryption. You still with me?
Quantum Xchange is often pigeonholed by our early PR and marketing success as a quantum network provider – essentially a QKD reseller and one of the first quantum startups in the U.S. Launched in 2018, the Phio quantum superhighway proved too early to market and too limiting in terms of functionality and commercial readiness. So, necessity being the mother of invention, we created Phio Trusted Xchange (TX).
At first, Phio TX was intended to work with our quantum network to extend its capabilities – enabling point-to-multipoint delivery of keys beyond 100 km. But as we continued to innovate on the product, we quickly realized it had the potential to provide two important functions essential to quantum security – quantum entropy and out-of-band key delivery – in a much simpler, affordable, and practical way. Today, Phio TX is our flagship or anchor technology from which all our other solutions and services derive. It offers the market a foundation architecture for delivering the future of encryption.
Phio TX is not classic Quantum Key Distribution (QKD) where photons of light are used to create qubits and a beam splitter and photon collector is required to send and receive secret information. It is not a quantum repeater, or a trusted node. Phio TX is a dynamic, key-delivery architecture that works with your existing encryption and a quantum-key source (QRNG, QKD or PQC) to send a second, symmetric key out-of-band down a quantum-protected tunnel and mesh network independent of the data path. An attacker must now know that two independent encryption platforms are present, with two keys in play – when, where, how, or even if they are paired. This prevents man-in-the-middle attacks because there is no single middle anymore. The complexity and randomness of the key distributions also creates a paradigm that quantum computers are not designed to crack. In the abstract, think of the solution as two-factor authentication, but for keys.
For those organizations that have opted for provably secure or physics-based QKD, Phio TX takes it to the next level by extending the delivery of the quantum-generated keys to multiple transmission points across any TCP/IP connection. This is a core differentiation in terms of what we do compared to the function of a trusted node. Phio TX leverages the entropy generated from a single Alice to Bob QKD connection and then uses its out-of-band key delivery technology to send the QKD-generated keys to other locations not on the fiber network. Think of it as all the benefits of QKD (governed by the principle of quantum mechanics = no eavesdropping, no cloning, no interception of keys, out-of-band transmissions) with none of the limitations (expensive, requires dedicated fiber, point-to-point only, limited transmission distances). Essentially, we’ve taken classic QKD, further innovated on its functionality and applicability, removed its barriers to adoption, and created a next-generation technology for the distribution of quantum keys.
We built Phio TX to be vendor agnostic; to support all quantum key sources; to work across any network media type (wireless, satellite, copper, fiber); to easily integrate with existing network security products (or key-consuming encryptor clients) to make them immediately quantum safe; and to be enterprise ready (FIPS 140-2 validated). We don’t choose between photons or algorithms when it comes to how best to prepare or address the looming quantum threat. We solve for the problem architecturally, while at the same time overcoming the inherent vulnerabilities of PKE – where data and keys travel together allowing for an attacker to compromise only one connection to obtain all the secret information. By separating the key from the data path, we dramatically enhance your existing data communications security and overall cybersecurity posture TODAY.
Phio TX can help protect against, and minimize the risks associated with current attack vectors including the aforementioned man-in-the-middle, but also brute-force, side-channel, harvesting, and even ransomware attacks. We’d argue that a quantum-safe VPN like Phio TX-D would have prevented the ransomware attack on the Colonial Pipeline and the loss of 100 gigabytes of data.
While closing the vulnerability gaps with PKE, Phio TX also improves and automates basic security hygiene practices. For example, most VPNs rely on the IPsec protocol using static keys that are not frequently (or ever) rotated – a poor security practice that weakens the overall security posture of the network. In the Phio TX hive, keys are generated and rotated on demand and even on every transfer – providing key delivery to every VPN node automatically. With Phio TX, secure continuous key rotation is the norm rather than the exception.
In addition to these present-day benefits, we give organizations a scalable, crypto-agile key infrastructure to easily upgrade defenses as the threat landscape evolves and as their data inventory requirements and risk tolerance levels dictate or change. Further crypto agility is achieved through Phio TX’s support of all PQC Key Encapsulation Mechanism (KEM) candidate algorithms – meaning, customers can change PQC algorithms without disturbing their data networks. If desired, they can even begin with PQC then eventually add QKD with no changes needed to the underlying infrastructure. And, we offer an edge device for quantum-safe VPNs (Phio TX-D) so that organizations of any size or scope can kick-start their journey toward quantum safety.
Our vendor-friendly architecture, compatibility, and interoperability makes Phio TX attractive to channel partner or reseller relationships with network security vendors e.g., Thales, Fortinet, Cisco, Juniper, etc.; with quantum hardware providers like Toshiba and ID Quantique; and to commercial and government organizations looking to extend their crypto infrastructure and investment into the quantum era with minimal lift or outlay.
But do you do anything for me today, or do you just address the quantum threat?
Our response to government agencies and businesses: are you looking to protect yourself from current AI and brute-force attacks? Do you have critical long-duration data to protect? Are you using an IPsec VPN which fails to offer continuous key rotation? Are you deploying any new infrastructure that needs to be protected against obsolescence? Are you a security-forward organization that recognizes developments to computer power, new attack strategies, weak random number generators, the emergence of quantum computers, and upcoming changes to encryption technology will require a massive upgrade cycle to encryption systems around the world and are seeking a practical, affordable, state-of-the-art solution?
This is who we are and what we sell. Contact us today to learn more!
