> On Jun 30, 2016, at 6:52 PM, Peter Todd <p...@petertodd.org> wrote:
> 
>> On Thu, Jun 30, 2016 at 05:22:08PM +0200, Eric Voskuil via bitcoin-dev wrote:
>> 
>>> On Jun 30, 2016, at 2:43 PM, Jonas Schnelli <d...@jonasschnelli.ch> wrote:
>>> 
>>>>>> The core problem posed by BIP151 is a MITM attack. The implied solution 
>>>>>> (BIP151 + authentication) requires that a peer trusts that another is 
>>>>>> not an attacker.
>>>>> 
>>>>> BIP151 would increase the risks for MITM attackers.
>>>>> What are the benefits for Mallory of he can't be sure Alice and Bob may
>>>>> know that he is intercepting the channel?
>>>> 
>>>> It is not clear to me why you believe an attack on privacy by an anonymous 
>>>> peer is detectable.
>>> 
>>> If Mallory has substituted the ephemeral keys in both directions, at the
>>> point where Alice and Bob will do an authentication, they can be sure
>>> Mallory is listening.
>> 
>> I understand the mechanics of a tunnel between trusting parties that have a 
>> secure side channel. But this assumes that no other peer can connect to 
>> these two nodes. How then do they maintain the chain?
>> 
>> The "middle" in this sense does not have to be the wire directly between 
>> these two peers. It can be between either of them and any anonymous 
>> connection they (must) allow.
>> 
>> Of course this creates pressure to expand their tunnel. Hence the problem of 
>> expanding node identity in an effort to preserve privacy. The protection 
>> will remain weak until the entire network is "secure". At that point it 
>> would necessarily be a private network.
>> 
>> As Pieter rightly observes, there are and always will be tunnels between 
>> trusting nodes. Often these are groups of nodes that are in collaboration, 
>> so logically they are one node from a system security standpoint. But if 
>> people become generally reliant on good node registration, it will become 
>> the registrar who controls access to the network. So my concern rests I this 
>> proposal becoming widely adopted.
> 
> To be clear, are you against Bitcoin Core's tor support?
> 
> Because node-to-node connections over tor are encrypted, and make use of onion
> addresses, which are self-authenticated in the exact same way as BIP151 
> proposes.

BIP151 is self-admittedly insufficient to protect against a MITM attack. It 
proposes node identity to close this hole (future BIP required). The 
yet-to-be-specified requirement for node identity is the basis of my primary 
concern. This is not self-authentication.

> And we're shipping that in production as of 0.12.0, and by default Tor onion 
> support is enabled and will be automatically setup if you have a recent 
> version of Tor installed.
> 
> Does that "create pressure to expand node identity"?

The orthogonal question of whether Tor is safe for use with the Bitcoin P2P 
protocol is a matter of existing research.

e
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