In a world rapidly advancing toward quantum computing, have we underestimated the risks and will our reluctance to act now leave our digital world exposed and vulnerable?
Are we already lagging behind, turning a blind eye to the urgent security challenges posed by the quantum era? In a world rapidly advancing toward quantum computing, have we underestimated the risks and will our reluctance to act now leave our digital world exposed and vulnerable? Rupert Ursin, founder of two Austrian companies that are pioneering in the field of quantum communication – zerothird and Quantum Technology Laboratories – stresses to Laura Kaltenbrunner of cyber security firm, CERTAINITY the impending risks to European critical infrastructures if we continue to lag behind in quantum communication.
The Quantum Advantage
Kaltenbrunner: What exactly is quantum communication – and why is it becoming so important?
Ursin: Cryptography is not a new idea – it has existed since antiquity. Major leaps came in the 20th century. After the world wars, and later in the 1970s, RSA encryption emerged as a major breakthrough. That’s exactly what we all use today: for online banking, on mobile phones, on the internet with HTTPS connections. It is an asymmetric method.
The problem is a quantum computer can break this method. A regular computer can’t do that – but a quantum computer can, in just a few seconds. With this technology, everything we consider secure today becomes worthless in an instant. That means we urgently need a new system – and that’s where quantum communication comes in: a physical solution to a digital problem.
Kaltenbrunner: How does this new technology differ from classic encryption?
Ursin: The big difference lies in how the keys are generated. Today, a piece of software on my phone is enough. That doesn’t work with quantum communication – you need dedicated hardware that generates and transmits the keys.
This is not something that can simply be “calculated.” The keys have to be physically generated and sent – via fiber or satellite. Maybe in a few decades, there will be chips that handle this in miniaturised form, but for now, specialised devices are still required.
Austria’s Quantum Journey
Kaltenbrunner: And how far along is Austria – for example, in implementation?
Ursin: Technologically, Austria is in an excellent position – particularly in research. We have plenty of well-trained personnel and even the entire supply chain for this technology. But when it comes to deployment? We are lagging.
In our companies, the export rate is 97 percent – we deliver almost everything abroad. The Austrian market plays virtually no role for us. It is telling: if we were a manufacturer of traditional leather pants, the Federal President would probably have visited us long ago. But with quantum communication? No one shows up.
In Austria, a persistent prejudice remains – supposedly we live off tourism. In reality, most of our economic output comes from industry. Yet we still struggle enormously to take future technologies seriously.
Critical Infrastructure at Risk
Kaltenbrunner: Which companies should urgently be concerned with quantum communication?
Ursin: Definitely critical infrastructure. Banks are currently at the forefront – and rightly so. A retail bank depends on communication with its customers. If something fails, operations are paralysed. At the same time, banks are legally required to offer their services – they can’t just say, “We’re closed today.”
The same applies to power grids: if communication fails, there are two problems – no electricity, no money. And additionally, a legal violation. Under the new NIS2 directive, this now involves personal liability.
Consider aviation, rail, and road networks – all areas where secure communication is critical. Our entire societal infrastructure must engage with this because what happens if this is neglected and suddenly all current encryptions no longer work?
Fortunately, progress is being made. Today, it is quite normal for quantum physicists to work in banks. The European Commission has long been calling on its member states to prepare for this technological revolution.
Global Leaders in Quantum
Kaltenbrunner: And who is leading globally?
Ursin: That’s easy: China. They are 20 years ahead of us. Recently, Austrian intelligence asked me whether we are afraid of Chinese espionage. I laughed. If a Chinese spy came to us, it would only be for amusement – for them it would be like a journey into the past. They are building quantum networks there, have their own providers, and the most powerful quantum computers in the world. Our competition there is worth four trillion US dollars – a company of that size doesn’t need to spy on us; it simply has no reason to.
The situation is different in the U.S., where progress has been slower – largely because there was historically less investment in the academic ecosystem. For a long time, quantum research was seen as philosophical, and Americans aren’t interested in that. Today, they lack a foundation from which new companies could grow.
In Austria, by contrast, there are three to four startups – and we have more scientific publications on quantum communication than the entire U.S. Not per capita, not by citation – just more. But we are still too slow in implementation. Europe has a chance now to forge ahead – and I have the feeling we’re going to miss it again.
The Urgency of Now
Kaltenbrunner: What happens if states or companies simply ignore this development?
Ursin: Then a single quantum computer, somewhere in the world, is enough to collapse the entire system.
Pessimists say: we have 10 years left. Optimists say: 3 years. I say: it has already happened. NVIDIA, for example, claims we don’t even need a quantum computer – their chips are good enough. They might take two weeks instead of two seconds to break our current encryption, but what difference does that make?
So how fast can we adapt? We believe that even in 20 years, quantum communication will not be fully deployed in critical infrastructure. Which means it is already too late! But we must still do our best and act now.
Challenges & Opportunities
Kaltenbrunner: Are there things that quantum communication can’t solve?
Ursin: Unfortunately, yes. There are applications where quantum communication can’t help – for example with passive signatures, as used in passports or bank cards. These rely on mathematical methods that can be broken with quantum computers. For this type of authentication, there is currently no physical alternative – and it is not foreseeable that there ever will be.
Kaltenbrunner: Will quantum communication become relevant for every company in the future – or remain a high-end topic for specialists?
Ursin: It must become broadly available. If only because of legal regulations such as the NIS2 directive. Every conference, every summit now includes keynotes on quantum communication. In Austria, the topic even appears seven times in the government’s programme. No one can say they didn’t know.
Now it’s time to build, sell, implement – everyone must contribute as best they can.
Kaltenbrunner: Are there regulatory stumbling blocks?
Ursin: Not from the EU – they are extremely well prepared. But in Austria, we afford ourselves the luxury of not even having a dedicated agency for cybersecurity certifications. We currently rely on Germany’s BSI. In practice, this means as a manufacturer, we cannot remain in Austria long-term, because we cannot have our products certified here. It’s like having a country with car manufacturers but no vehicle inspection system.
The EU has been calling and supporting for over 20 years – but Austria, for example, only reacts hesitantly or not at all. It is frustrating!
An Urgent Call to Action
Kaltenbrunner: And finally, what would you say to decision-makers who are still hesitant?
Ursin: The system in Austria works – but it has no strategy. Everything keeps going somehow. That was fine for a long time, but the next 20 years will be rough. And with a “It’ll be fine” mindset, we won’t get through.
What do I wish? That the administration, politics, and businesses stop hesitating. That we stop waiting to see what others do – and finally start taking action ourselves.
About Rupert Ursin
Rupert Ursin is a leading Austrian physicist and entrepreneur with over 25 years of experience in quantum communication. He is the founder of Quantum Technology Laboratories and zerothird, two companies at the forefront of secure quantum communication for both space and terrestrial networks.
About Quantum Technology Laboratories and zerothird
Quantum Technology Laboratories and zerothird are Austrian leaders in quantum communication. zerothird secures business data with fiber-based quantum cryptography, while Quantum Industries enables secure satellite quantum communication for the space sector. Both companies partner with CERTAINITY and use the “CISO as a Service” approach to embed cybersecurity in their operations.
HORIZON Risk Thought >> Fast Forward
The complexity of today´s risk environment is changing at an accelerating pace, making risk management even more challenging. We have created HORIZON, firstly as a print publication and now as a page for sharing the latest insights about ongoing transformations. Our risk specialists will continue to provide their expertise and knowledge to shine a light on the challenges of the future.
Laura Kaltenbrunner
Marketing Manager
CERTAINITY
Rupert Ursin
Founder
Quantum Technology Laboratories & zerothird
