We present a new fiber based quantum key distribution (QKD) scheme which can be regarded as a modification of an idea proposed by Inoue, Waks and Yamamoto (IWY) [1]. The scheme described here uses a single phase modulator and two differential delay elements in series at the transmitter that form an interferometer when combined with a third differential delay element at the receiver. The protocol is characterized by a high efficiency, reduced exposure to an attack by an eavesdropper, and higher sensitivity to such an attack when compared to other QKD schemes. For example, the efficiency with which transmitted data contribute to the private key is 3/4 compared with 1/4 for BB84 [2]. Moreover, an eavesdropper can aquire a maximum of 1/3 of the key which leads to an error probability in the private key of 1/3. This can be compared to 1/2 and 1/4 for these same parameters in both BB84 and IWY. The combination of these considerations should lead to increased range and key distribution rate over present fiber-based QKD schemes.
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