Disclosed herein is a plug-and-play differential phase-encoded measurement device independent (DPS MDI) quantum key distribution (QKD) system that uses single photons in a linear superposition of three orthogonal time-bin states. The system shown in FIG. 1 comprises a transmitter (Tx), a pair of receiver sub-systems (Rx1, Rx2) and a measurement unit. The method comprises the steps of: generating a high-powered optical signal, polarizing the generated signal to 45o and obtaining pulsed signal, obtaining three time-bins from the pulsed signal, splitting the pulsed signal into horizontally polarized and vertically polarized signals, transmitting the horizontally polarized signal to the first receiver sub-system (Rx1) and reflecting the vertically polarized signal to transmitter (Tx), horizontally polarising the vertically polarized signal and transmitting it to second receiver sub-system (Rx2). The receiver sub-systems (Rx1, Rx2) convert horizontally polarized signals into phase encoded key. The keys from receiver sub-systems are transmitted to measurement unit for photon detection.
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