Conclusion of Partnership on Quantum Cryptography Technology

In recent years, with the spread of smartphones and the digitization of companies and governments, the importance of cyber security has increased dramatically. To ensure the confidentiality and integrity of data and communications, encryption algorithms such as public key cryptography (Note 1) are used to prevent tampering and eavesdropping by arranging data in a difficult-to-calculate data array. On the other hand, with the emergence of quantum computers with computational performance that far surpasses that of conventional computers, there is the danger that today's mainstream cryptographic algorithms will be easily cracked. Quantum cryptography is an encryption technology that applies the quantum mechanical theory of physics. By using "quantum key distribution" in which the cryptographic key is placed on photons (Note 2), it is possible to detect evidence of eavesdropping by fluctuations of photons and prevent unauthorized reading. Arqit's quantum cryptography technology solution "QuantumCloud" is a cloud service that provides high security and low cost quantum cryptography technology with simple settings. Arqit was founded in 2017 with a mission to ensure cybersecurity using quantum cryptography. Over the next four years, he worked to develop and establish the practical application of innovative quantum keys, and currently holds hundreds of patents. In March 2021, Sumitomo Corporation launched the Quantum Transformation (QX) Project, which aims to transform society through quantum technology. As a general trading company with a wide range of business domains, Sumitomo Corporation aims to become a leading company in transforming society through quantum technology. . In addition to sales activities for the Japanese market of "QuantumCloud", we will consider research and development and joint ventures with government agencies, manufacturers, financial institutions, etc. For example, by applying quantum cryptography technology to the communication of credit card payment information, we will promote the spread of quantum cryptography for finance that enables complete confidentiality protection of customer information and payment information. In addition, we have also decided to undertake a private placement capital increase associated with the merger of Arqit and a NASDAQ-listed special acquisition company. Since 2019, Arqit and Sumitomo Corporation have been building a relationship to promote the spread of quantum cryptography technology. Through this partnership, we will contribute to the construction of a safe and prosperous social infrastructure by providing cyber security solutions that utilize cutting-edge quantum cryptography technology. (Note 1) Public key cryptosystem: A cryptosystem that uses separate keys for encryption and decryption when exchanging data. (Note 2) Photon: The smallest unit of light (electromagnetic waves) from the viewpoint of quantum theory. ■ Image of quantum cryptography key distribution