  Quantum continuous variables are being explored as an alternative means to
implement quantum key distribution, which is usually based on single photon
counting. The former approach is potentially advantageous because it should
enable higher key distribution rates. Here we propose and experimentally
demonstrate a quantum key distribution protocol based on the transmission of
gaussian-modulated coherent states (consisting of laser pulses containing a few
hundred photons) and shot-noise-limited homodyne detection; squeezed or
entangled beams are not required. Complete secret key extraction is achieved
using a reverse reconciliation technique followed by privacy amplification. The
reverse reconciliation technique is in principle secure for any value of the
line transmission, against gaussian individual attacks based on entanglement
and quantum memories. Our table-top experiment yields a net key transmission
rate of about 1.7 megabits per second for a loss-free line, and 75 kilobits per
second for a line with losses of 3.1 dB. We anticipate that the scheme should
remain effective for lines with higher losses, particularly because the present
limitations are essentially technical, so that significant margin for
improvement is available on both the hardware and software.
