Implementation of a quantum phase gate by the optical Kerr effect
  We show that the optical Kerr effect can be used to construct a quantum phase gate. It is well known from quantum nondemolition techniques that, as two photon field modes pass through a Kerr medium, the phase of each mode will be shifted, and the size of the phase shift will depend on the number of photons in both modes. We discuss the Hamiltonian responsible for this effect and show how this can produce an effective photon-photon interaction which corresponds to the quantum phase gate operating on two qubits each of which is represented by the elliptical polarization of one photon field. We discuss decoherence and losses and suggest some methods for dealing with them. 
S. Glancy, J. M. LoSecco, C. E. Tanner