OK, they've figured out how to store and transmit data in a very dense fashion:

http://news.bbc.co.uk/2/hi/technology/8281544.stm

But:

"Reading out the data on a light pulse is limited by the same electronics that 
generate them in current systems, so a "decompressing" scheme would need to be 
implemented on the receiving end."

They haven't yet figured out how to read them.

Who needs one-way encryption?

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