Denz develops modern optical methods for structuring light and matter; which includes optical data storage and systems for information processing. She developed a compact holographic data storage system in which data is imprinted on a liquid crystal display onto a laser beam. The laser beam is superimposed on a separated reference beam, with the information being encoded on a hologram. The information is read in parallel and can permit high data transfer rates. For digital data, holographic storage allows for improved security and encryption. She is interested in developing single crystal data storage systems, and uses them an switching elements such as optical transistors.