MicroCloud Hologram Inc. (NASDAQ: HOLO) announced the development of two quantum identity authentication schemes based on the Grover quantum search algorithm. The company stated the schemes address implementation challenges in traditional quantum authentication through simplified technical design.

The first scheme operates with a trusted third party and uses two-particle product states that do not require complex entangled-state preparation. According to the company, this approach can be achieved with conventional quantum optical equipment. The third party generates quantum states containing identity verification information and distributes particles to communicating parties, who perform single-particle measurements to obtain identity credentials.

The second scheme functions without third-party involvement for decentralized scenarios. One user generates a two-particle product state and sends one particle to another user while retaining the second as a reference credential. Both parties perform single-particle measurements and use the Grover algorithm for matching calculations.

MicroCloud Hologram indicated the scheme with a third party suits applications requiring authoritative intermediaries such as financial transactions and government systems. The decentralized version targets point-to-point communication and blockchain transactions.

The company described both schemes as utilizing minimal quantum resources and avoiding entangled-state operations, which it characterized as reducing technical implementation barriers compared to traditional quantum authentication methods.

MicroCloud Hologram provides holographic technology services including LiDAR solutions and digital twin technology. The company previously announced plans to invest over $400 million in blockchain development, quantum computing research, and related technologies, according to the press release.