The QuantumLock QEC-3 is a point-to-point communication system that uses quantum key distribution to achieve theoretically unbreakable encryption. The system relies on the fundamental properties of quantum mechanics: any attempt to intercept or measure the quantum key transmission alters the quantum states being transmitted, immediately alerting both parties to the interception attempt. This is not a mathematical encryption that might be broken by future computers — it is encryption guaranteed by the laws of physics.

The QEC-3 consists of paired terminal units connected by dedicated fiber optic lines that carry the quantum key distribution channel alongside the encrypted data channel. Each terminal contains a single-photon source, a photon detector, and the quantum random number generators that produce the encryption keys. The system generates new keys continuously, with each key used only once and discarded — a one-time pad system that would be impractical without quantum key generation to produce the enormous volume of random key material required.

The system's limitation is its requirement for a dedicated physical fiber connection between the two communicating terminals. Quantum key distribution cannot be relayed or routed through network nodes — any intermediate point would break the quantum entanglement that guarantees security. This means QEC-3 is a point-to-point system only, requiring a dedicated fiber for each communicating pair. TESSERA sells the QEC-3 for 800,000 Φ per terminal pair plus the cost of the dedicated fiber installation. At these prices, QuantumLock is used exclusively for the most sensitive communications: corponation board-to-board channels, military command links, and financial transaction verification for trades worth billions of Φ.