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Quantum key distribution (QKD) allows two users to communicate withtheoretically provable secrecy by encoding information on photonic qubits.Current encoders are complex, however, which reduces their appeal for practicaluse and introduces potential vulnerabilities to quantum attacks.Distributed-phase-reference (DPR) systems were introduced as a simpleralternative, but have not yet been proven practically secure against allclasses of attack. Here we demonstrate the first DPR QKD system withinformation-theoretic security. Using a novel light source, where the coherencebetween pulses can be controlled on a pulse-by-pulse basis, we implement asecure DPR system based on the differential quadrature phase shift protocol.The system is modulator-free, does not require active stabilization or acomplex receiver, and also offers megabit per second key rates, almost threetimes higher than the standard Bennett-Brassard 1984 (BB84) protocol. Thisenhanced performance and security highlights the potential for DPR protocols tobe adopted for real-world applications.

Manipulating photon coherence to enhance the security of practical quantum key distribution