Decoherence and 1/f noise in Josephson qubits

We propose and study a model of dephasing due to an environment of bistable fluctuators. We apply our analysis to decoherence of Josephson Qubits, induced by background charges present in the substrate, which are also responsible for the 1/f noise. The discrete nature of the environment leads to a number of new features which are mostly pronounced for slowly moving charges. Far away from degeneracy this model for the dephasing is solved exactly.