• +86-400-833-5056
  • West side of the 3rd floor of Factory Building #7, Wuyi Science and Technology City Incubation Zone, No. 316 Wujiang Avenue, Baiyang Street, Wuyi County, Jinhua City, Zhejiang Province
News

How does the confidentiality advantage of fiber-optic communications drive the upgrade of data encryption technology in the financial industry?

Publish Time: 2025-04-15
Optical fiber communication provides unprecedented security for data transmission in the financial industry with its natural physical isolation, anti-electromagnetic interference and low signal leakage characteristics. This technological advantage not only reshapes the infrastructure of the financial network, but also becomes the core driving force for the upgrade of data encryption technology.

The optical signal of optical fiber communication is fully reflected and transmitted in the fiber core, and the signal leakage rate is more than 1,000 times lower than that of traditional cables. This feature enables financial institutions to achieve physical isolation of communication links without relying on complex electromagnetic shielding equipment. For example, the inter-bank clearing system completely avoids the risk of wireless signals being intercepted through direct optical fiber connection, forcing encryption technology to shift from "defending against electromagnetic eavesdropping" to a higher dimension of "resisting quantum computing attacks".

Traditional cables are susceptible to interference such as lightning and industrial noise, and data integrity must be ensured through multi-layer encryption algorithms (such as AES-256+RSA hybrid encryption). The anti-electromagnetic interference characteristics of optical fiber communication enable the financial system to simplify the encryption process and adopt the more efficient national encryption SM4 algorithm. For example, the high-frequency trading system of the stock exchange compresses the encryption delay from 50 milliseconds to 8 milliseconds through the optical fiber network, significantly improving trading efficiency.

The Tbps-level transmission capacity of optical fiber brings massive data concurrency requirements to the financial industry. The traditional SSL/TLS protocol is difficult to meet real-time transaction scenarios due to handshake delays, prompting financial institutions to develop encryption protocols based on quantum key distribution (QKD). For example, in the pilot of the central bank's digital currency (DC/EP), the QKD system was deployed through the optical fiber network to increase the key refresh frequency from minutes to milliseconds, effectively preventing man-in-the-middle attacks.

The optical fiber link between financial data centers is usually more than 100 kilometers, and traditional key distribution systems (such as PKI) face the problem of certificate revocation delay. The low attenuation characteristics of optical fiber communication enable the application of key management protocols (such as IBC), which directly generate keys through identity identification without the intervention of certificate authorities (CA). For example, the UnionPay cross-border payment system uses IBC technology to shorten the cross-border transaction authentication time from 24 hours to real time.

Financial anti-money laundering monitoring involves sensitive customer information, and the "invisible light" characteristics of optical fiber communication provide new ideas for data desensitization technology. For example, by embedding a chaotic encryption algorithm in the optical fiber, the original data presents random noise characteristics during transmission, and cannot be parsed even if it is intercepted. This technology has been applied to foreign exchange trading supervision platforms to achieve anonymous transmission of tens of billions of transaction data per day.

The financial system requires "7×24 hours" uninterrupted operation, and the redundant architecture of fiber-optic communication (such as dual-ring self-healing network) promotes the dynamic evolution of encryption technology. For example, the blockchain financial platform adopts the combination of "homomorphic encryption + zero-knowledge proof" technology to automatically switch to quantum secure direct communication (QSDC) mode when the fiber-optic network fails, ensuring the dual protection of data availability and confidentiality.

The confidentiality advantage of fiber-optic communication is essentially the co-evolution of physical layer security and information layer security. When the financial industry moves from "anti-eavesdropping" to a new stage of "anti-quantum cracking", the fiber-optic network will not only serve as a transmission medium, but also become a testing ground for encryption technology innovation. In the future, with the breakthrough of cutting-edge technologies such as hollow-core optical fiber and photonic chips, financial data encryption will achieve a qualitative change from "passive defense" to "active immunity", building a true "financial security shield" for the digital economy era.
×

Contact Us

captcha