A system and method for performing differential phase shift in a quantum network are disclosed. The method includes determining a quantum key distribution (QKD) configuration for a quantum signal comprising a series of pulses based on signal amplitude, signal pulse width and block length. Further, the method includes grouping pulses to generate quantum signal blocks based on determined QKD configuration. The method includes assigning a random label to each of the quantum signal block based on the determined quantum key distribution configuration. Also, the method includes performing hybrid phase modulation to each of the pulses individually and to each of the quantum signal blocks with a defined phase difference between the each of the pulses individually and each of the quantum signal blocks. The hybrid phase modulation is performed based on the assigned random label. Further, the method includes transmitting the hybrid phase modulated quantum signal blocks to receiving units.