Josephson junctions are a fundamental building block of superconducting quantum circuits. They provide the nonlinearity required to realize quantum bits and enable a wide range of nonlinear phenomena central to quantum technologies. This thesis explores two superconducting systems in which this nonlinearity plays a central role.

In the first part, we investigate a superconducting resonator terminated by a superconducting quantum interference device (SQUID), an arrangement of two Josephson junctions connected in parallel. The SQUID provides a tunable Kerr nonlinearity and allows the resonator to be driven parametrically. Under the combined action of the parametric drive, Kerr nonlinearity, and dissipation to the environment, the state of the resonator can undergo abrupt changes as the pump frequency or amplitude is varied. We interpret these changes within the framework of dissipative phase transitions (DPTs). By implementing a finite-component thermodynamic limit, we experimentally and theoretically investigate both first- and second-order DPTs in this system. We characterize their steady-state and dynamical signatures, including squeezing below vacuum, phase coexistence, hysteresis, spontaneous symmetry breaking, and critical slowing down. Finally, we exploit the enhanced susceptibility near the second-order critical point to implement a frequency-estimation protocol. We show that the estimation precision scales quadratically with the effective system size, demonstrating that finite-component DPTs can provide a quantum advantage in a sensing protocol.

In the second part, we investigate a novel architecture for the readout of superconducting qubits. Conventional dispersive readout relies on a transverse interaction between a transmon and a resonator, which can lead to Purcell decay and measurement-induced state transitions, ultimately limiting the readout fidelity. To overcome these limitations, we implement a nonlinear coupling by galvanically connecting the transmon and resonator through a Josephson junction. This interaction provides a strong cross-Kerr coupling for clear state discrimination, but also introduces a detrimental transverse interaction. We experimentally show that the exchange part of the transverse interaction can be suppressed by adding a capacitor in parallel with the coupling junction while preserving the strong cross-Kerr coupling. In addition, we show that the same circuit acts as an intrinsic Purcell filter, protecting the qubit against Purcell decay. The coupling junction also induces a Kerr nonlinearity in the resonator, which we exploit to implement a bifurcation readout with a 99.4 % fidelity in a 68 ns integration time. This performance is achieved without a dedicated Purcell filter or a near-quantum-limited amplifier.

Overall, this thesis demonstrates the engineering of nonlinear superconducting circuits to investigate dissipative phase transitions, exploit criticality for enhanced quantum sensing, and develop a novel qubit readout architecture enabling fast, high-fidelity measurement.