Congressional tax commission frets about crypto

1999-06-23 Thread Declan McCullagh



http://www.wired.com/news/print_version/politics/story/20355.html?wnpg=all

Some of the testimony warned of the dangers posed to governments by
uncontrolled technology, a common complaint in the nation's capital. 

Specifically, presenters here at William and Mary College fretted that
encryption technology, combined with the ability to buy and sell anywhere in
the world, could allow consumers to skirt sales taxes. 

Maintaining taxes at current levels poses "an increasingly difficult problem
for tax administrators as a result of new technologies," said Joseph Guttentag
of the US Treasury Department. 

He warned that Americans may seek to evade high income taxes by moving online
and offshore. 

"We are going to closely monitor the relationship of tax havens to electronic
commerce... Encrypted [communications] create opportunities for untraceable
transfer of assets and other activities that will hinder audits" 

Guttentag, who appeared in Treasury Secretary Robert Rubin's stead, is a
senior
adviser in the department's Office of Tax Policy and chairman of an
Organization
for Economic Cooperation and Development tax committee. He said the OECD
should
become more involved in eliminating "other forms of harmful tax competition." 






Re: Bridge

1999-06-23 Thread Anonymous

  There are 52! bridge hands, so a random hand has
  log2(56!) = 226 bits of entropy or 68 decimal digits worth. Are they
  generating that much entropy per hand now? If so, how?
 
 Generating that much entropy would be pointless. All that's needed is
 enough entropy to be unguessable in the seed and a cryptographically
 secure pseudo raandom number generator.

Are you sure?  A typical PRNG uses a 31 or 32 bit seed, which means that it
could only generate 2^32 out of the 2^226 possible shuffles, a vanishingly
small fraction of the total.  (A few years back when the Unix PRNG only had a
16 bit seed, this was the basis of an extremely effective dictionary attack
on "randomly" generated passwords.)

Maybe the set of shuffles generated by a good PRNG are sufficiently many and
well enough distributed through the total set that they're not amenable to
exhaustive or statistical analysis, so it wouldn't matter, but this strikes
me as exactly the kind of shortcut not to take when the issue at hand is the
credibility of the shuffling process. 

Besides, by the time you've gathered 32 bits of true entropy, gathering
another 195 bits isn't a lot more work. 

Regards,
John Levine, [EMAIL PROTECTED], Primary Perpetrator of "The Internet for Dummies",
Information Superhighwayman wanna-be, http://iecc.com/johnl, Sewer Commissioner
Finger for PGP key, f'print = 3A 5B D0 3F D9 A0 6A A4  2D AC 1E 9E A6 36 A3 47 




DSA sign only

1999-06-23 Thread Anonymous

Hi,

I'm working with Elgamal public Key algorithm for encryption only.  Now, I 
need to generate a signature with DSA (signature only).  Do I have to 
calculate all the parameters (p, q, g, y, x ...)
or is it possible to use parameters already calculate in Elgamal algorithm ?

Best regards,

Hans...



ElGamal without exponent reduction?

1999-06-23 Thread Anonymous

Hi,

suppose we use an ElGamal-variant where we do not need to compute inverses
modulo the group order.  Such variants exists and they are explained in the
Handbook of Cryptography, for instance, let

G: generator
a: secret value
A: public value G^a

and for the signature

k: secret random value
R: G^k

and

s = a h(m) + k g(R)  mod n  (*)

where h is a hash-function, n is the group order, and g is a (public)
mapping from the elements of the group to Z (the integers).  The signature
is (s, R).

For the verification, check that

G^s = A^h(m) R^g(R)

holds.

Now suppose that the reduction  mod n in (*) is omitted.  Except that the
size of s would be larger, can anybody see whether this would be harmful?

-- 

S. Hamdy|  All primes are odd except 2,
[EMAIL PROTECTED]|  which is the oddest of all.
|
unsolicited commercial e-mail   |  D.E. Knuth
is strictly not welcome |



RE: Bridge

1999-06-23 Thread Anonymous



 --
 From: Arnold G. Reinhold[SMTP:[EMAIL PROTECTED]]
 
 I am still not clear as to what the hard issues are. 
 
 
Nor am I. In fact, I can't help but wonder
if this is a case where computers (which are
effectively black boxes which users are asked
to trust) are the wrong approach.

How difficult would it be to build a mechanical
shuffling machine, with enough randomness to 
produce a good shuffle? Even the best card 
magicians in the world have difficulty in 
performing more than a few perfect shuffles in
a row. In the absence of a machine, let several
neutral judges take turns shuffling the deck a
few times.

I realize that one of the goals is to give 
all the players in a tournament the same pack,
but once again, non-computer procedures which
are easily understandable, and which can be
seen to be fair, are possible. After the initial
shuffle, a set of decks can be collated to match
a master deck pretty quickly, given pre-existing 
stacks of each card. 

(For example - let the master deck be used by
a neutral judge or judges to arrange 52 stacks
of cards down the length of a table - face down.
Then let other neutral observers walk down the
length of the table, picking one card from each
stack, to build a deck.)

All of this could be done well before the start
of the match. Does this take any longer than what
is currently done?

After the decks are collated, let the teams select
'their' deck at random from the supply of pre-collated
decks.

If one is willing to stipulate no collusion between
those who prepare the decks, and those who use them,
a lot of procedures are fair and feasible.

Computers are not always the appropriate solution.

Peter Trei 







Re: Bridge

1999-06-23 Thread Sandy Harris

Russell Nelson wrote:

 Plus, the source of the entropy and algorithm used to create the
 bridge hands merely need to be auditable.  As long as the hands are
 based on some public source of entropy (e.g. the day's stock market)
 plus a letter publicly chosen by each of the participants (that's four
 bits of entropy on a good day), run through an OSI certified(tm) Open
 Source algorithm, everyone can calculate for themselves what the hands
 should be.
 
 It's almost a non-issue.

But if anyone can calculate the hands before the tournament, or
opposing player's hands during it, it's a disaster. Even if they
can significantly improve their guessing, it is a serious problem.