After carrying out a protocol for quantum key agreement over a noisy quantum channel, the parties Alice and Bob must process the raw key in order to end up with identical keys about which the adversary has virtually no information. In principle, both classical and quantum protocols can be used for this processing. It is a natural question which type of protocols is more powerful. We prove for general states but under the assumption of incoherent eavesdropping that Alice and Bob share some so-called intrinsic in their classical random variables, resulting from optimal measurements, if and only if the parties' quantum systems are entangled. In addition, we provide evidence that the potentials of classical and of quantum protocols are equal in every situation. Consequently, many techniques and results from quantum theory directly apply to problems in classical theory, and vice versa. For instance, it was previously believed that two parties can carry out unconditionally secure key agreement as long as they share some intrinsic in the adversary's view. The analysis of this purely classical problem from the quantum information-theoretic viewpoint shows that this is true in the binary case, but false in general. More explicitly, entanglement, i.e., entanglement that cannot be purified by any quantum protocol, has a classical counterpart. This bound intrinsic information cannot be distilled to a secret key by any classical protocol. As another application we propose a measure for entanglement based on classical information-theoretic quantities.
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