We propose a novel interaction-free scheme for all-optical switching which
does not rely on the physical coupling between signal and control waves. The
interaction-free nature of the scheme allows it to overcome the fundamental
photon-loss limit imposed by the signal-pump coupling. The same phenomenon
protects photonic-signal states from decoherence, making devices based on this
scheme suitable for quantum applications. Focusing on χ(2) waveguides,
we provide device designs for traveling-wave and Fabry-Perot switches. In both
designs, the performance is optimal when the signal switching is induced by
coherent dynamical evolution. In contrast, when the switching is induced by a
rapid dissipation channel, it is less efficient.Comment: 14 pages, 14 figures, submitted to Physical Review