We develop a scheme for fault-tolerant quantum computation based on asymmetric Bacon-Shor codes, which works effectively against highly biased noise dominated by dephasing. We find the optimal Bacon-Shor block size as a function of the noise strength and the noise bias, and estimate the logical error rate and overhead cost achieved by this optimal code. Our fault-tolerant gadgets, based on gate teleportation, are well suited for hardware platforms with geometrically local gates in two dimensions.
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