Binary homodyne detection for observing quadrature squeezing in satellite links

Optical satellite links open up new prospects for realizing quantum physical experiments over unprecedented length scales. We analyze and affirm the feasibility of detecting quantum squeezing in an optical mode with homodyne detection of only one bit resolution, as is found in satellites already in orbit. We show experimentally that, in combination with a coherent displacement, a binary homodyne detector can still detect quantum squeezing efficiently even under high loss. The sample overhead in comparison to nondiscretized homodyne detection is merely a factor of 3.3.