Quantum Bit Regeneration
  Decoherence and loss will limit the practicality of quantum cryptography and computing unless successful error correction techniques are developed. To this end, we have discovered a new scheme for perfectly detecting and rejecting the error caused by loss (amplitude damping to a reservoir at T=0), based on using a dual-rail representation of a quantum bit. This is possible because (1) balanced loss does not perform a ``which-path'' measurement in an interferometer, and (2) balanced quantum nondemolition measurement of the ``total'' photon number can be used to detect loss-induced quantum jumps without disturbing the quantum coherence essential to the quantum bit. Our results are immediately applicable to optical quantum computers using single photonics devices. 
Isaac L. Chuang and Yoshihisa Yamamoto (ERATO Quantum Fluctuation   Project, Ginzton Laboratory, Stanford University)