  We propose a quantum key distribution scheme which closely matches the
performance of a perfect single photon source. It nearly attains the physical
upper bound in terms of key generation rate and maximally achievable distance.
Our scheme relies on a practical setup based on a parametric downconversion
source and present-day, non-ideal photon-number detection. Arbitrary
experimental imperfections which lead to bit errors are included. We select
decoy states by classical post-processing. This allows to improve the effective
signal statistics and achievable distance.
