Re: CFP: PKI research workshop

2001-12-28 Thread Ray Dillinger



On Thu, 27 Dec 2001 [EMAIL PROTECTED] wrote:

>given that authentication is being performed as part of some business
>process or function ...  then it is normally trivial to show it is easier
>to have authentication (even digital signature authentication) integrated
>into such business processes  and correspondingly easy to show that
>certificate-based operations are redundant, superfulous and extraneous
>(modulo the issue of toy demos are cheaper than modifying production
>business operations).

The only case in which the PKI solution is not redundant is in
offline clearing.  But getting your point-of-transaction online
is easier than paying attention to PKI.

I happen to like offline clearing -- it opens up the possibility of
new transaction types and doing transactions in places you couldn't
before.  But the practical issue is, everybody who's interested in
electronic transactions of any kind is also interested in getting
online, and when PKI's were deployed in "developing" areas (south
africa) they got dumped just as soon as the area was developed
enough for communications to support online clearing.

On the principle of people refusing to adopt something until
it relieves pain, maybe we won't see a real PKI deployed until
we need to serve markets where speed-of-light delays make online
clearing impractical.

Mars, for example, is 3 to 22 light-minutes away.  I don't imagine
someone using an ATM on Mars is going to want to wait 12 to 88
minutes for online clearing (more if the protocol is talky or the
bandwidth is busy...).  So a martian colony might be the first
practical application of PKI and/or digital cash, assuming the
colonists want to do business with Earth companies.  But a colony
looks pretty distant right now: we haven't even got an outpost
there yet.

Bear







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Re: CFP: PKI research workshop

2001-12-26 Thread Ray Dillinger



On Wed, 26 Dec 2001, Matt Crawford wrote:

>As I never tire of saying, "PKI is the ATM of security."
>
>Meaning that has a certain niche relevance, but is claimed by
>proponents to be the answer to every need, and is the current magic
>word for shaking the money tree.
>

In fact, that may be exactly it.  PKI, as espoused by vendors,
once established, will become an indispensable monopoly, like
AT&T before the breakup. Investors love the fantasy of buying
a kajillion shares for cheap today and then having them be
shares in an indispensable monopoly next year, so they are
inclined to believe.

The problem is that none of the vendors are offering anything
that someone who has significant volume (like a financial-services
company might) cannot provide for themselves.  The FS companies
can easily wait to adopt, because the margins offered by PKI are
fairly small and the initial investment required is fairly large.
Perhaps the margins will remain too small until royalty payments
can be eliminated entirely (until any patents expire) and the
FS companies can roll their own.  Whether or not the margins
are too small, The FS companies can wait that long easily.

But the PKI vendor cannot wait.  S/he will be out of business
in three or four years if nobody adopts.  The patents will be
for sale then much cheaper than the royalty payments s/he is
offering, and the FS negotiator across the table knows it.  The
PKI vendor therefore is going to get the worst end of the deal
every time s/he goes to financial services vendors, because s/he
is not dealing from a position of strength, and had best learn
the harsh lesson sooner rather than later.

A PKI will happen, eventually, but nobody is going to get into
a position where the financial-services sector depends on them
and has to pay them.  That's as fundamental in business as the
second law of thermodynamics in physics, and chasing the dream
of becoming an indispensable monopoly to the financial services
sector promises to be as frustrating to the seekers as the quest
for a perpetual motion device.

Bear




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Re: CFP: PKI research workshop

2001-12-26 Thread Ray Dillinger



On Wed, 26 Dec 2001, Carl Ellison wrote:

>Ray,
>
>   if you look at PKI as a financial mechanism (like credit cards),
>then I see two major problems:
>
>1. the PKI vendors aren't financial institutions, so they aren't in a
>position to assume risk and make money from that

Yep.  So far, that's true.  Financial stuff is the only killer app
in sight for a PKI, and the financial services sector is conservative
and heavily regulated.  There is a substantial barrier to entry: just
try to imagine running off a few thousand PKI-backed credit cards and
going into business competing against mastercard/visa/amex.  Vendor
acceptance is slow and the regulatory hurdles are high.


>2. the current PKI thinking (e.g., with "rebuttable presumption of
>non-repudiation") is anti-consumer, when viewed as a financial
>mechanism, and I can't imagine that succeeding even if the vendors
>were banks.

Oh, I can.  If it's any good, you ought to be able to offer cards
with lower interest rates/fees, and people will go for that. The
whole idea of PKI in financial services after all, is to reduce
the amortized cost of transactions by reducing fraud.  If there's
a significant cost savings, you make more money even if you pass
part of it on to the consumers.

But nobody wants to be the first -- they all want to be able to look
at the business case built by some "bleeding-edge" financial-services
company that adopted and deployed PKI-based infrastructure in some
market and got measurable results, and they all want any and all
kinks in the technology to get worked out by someone else before
they touch it.  In financial services, they want mature technology
that's cheap and reliable to produce and use -- and they will roll
their own in order to make it cheaper instead of paying some "outside"
PKI company.

That's happening now, in fits and starts, with various
products internationally and in various closed markets.  If the
business case is good, the financial services companies will be
starting to pick it up for more mainstream use in a few years.

Odds are, however, that each and every one of them is going to want
their own PKI -- where P stands for Private, or Proprietary, rather
than Public.  A Public Key Infrastructure happens when the chaotic
situation which that brings about gets consolidated and standardized,
so don't look for that for at least a decade.  Basically we have no
chance of getting a Public Key Infrastructure in place right now
because we don't have enough different Private Key Infrastructures
in place for it to have started to hurt yet.  People won't go for
the PKI until they are in some kind of pain that it relieves. And
if financial services businesses are involved, they will do it in
such a way that no PKI vendor ever makes a profit they could possibly
have made themselves.  Look for them to be buying regulations that say
PKI is part of financial services and can only be provided by licensed
financial services corporations sometime in the next few years.

Like I said, don't get too discouraged -- these things happen slowly
and it's very much a matter of stages of development.  People don't
do things until the pain of not doing them gets worse than the pain
of doing them.  Public Key comes about when Private Keys have been
common for several years and their multiplicity causes pain.  That
in itself will take several years after the Private Key structures
are fully adopted. The Private Key structures get adopted several
years after the profit margins, split between consumers, vendors, and
financial institutions, each overcome the pain of changing infrastructure.
That will take several years after the initial offering.  The initial
offerings are happening now in very restricted markets, but don't
look for it to happen in domestic consumer markets until the results
of the restricted-market offerings are several years old and the
technology involved hasn't changed AT ALL for several years. They
are looking for a technology that's been in use long enough to
establish a baseline and get results that look stable and repeatable.
That's when financial services companies will begin to take them
seriously enough to consider that the pain of deploying new
infrastructure may overcome the painof absorbing losses due to
fraud.

These are just network effects: PKI will trickle through at the end
as surely as water runs downhill, because it's a better solution.
It's just going to take a decade or two, or maybe four or five
decades if there's a substantial monopoly somewhere in the industry.



Bear





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Re: CFP: PKI research workshop

2001-12-25 Thread Ray Dillinger



On Sat, 1 Dec 2001, Carl Ellison wrote:

>To a large extent, the hoped-for public key infrastructure (PKI) has
>not "happened yet."  PKI for large, eclectic populations has not
>materialized; PKI for smaller, less diverse "enterprise" populations
>is beginning to emerge, but at a slower rate than many would like or
>had expected.  Why is this?

Inherent conservatism of the financial business world.  The only
way you're going to get a PKI going fast is if people can use it
to do financial transactions they couldn't do before.  I mean,
there are other uses for PKI, but money is the heart and soul of
it because money is usually the only application people have where
security is important to them personally.  And you're not going to
get people to use it for money unless you can do it while all the
bankers and all the merchants get to do business with the same
companies they're doing business with now, the relatively few
"people" whom they trust with their money.

So far, PKI's have been mostly advanced by new companies which don't
have hooks into the infrastructure of financial services yet.  So
you get failure of interoperability, and a certain amount of FUD.
The ones that have been advanced by the companies who are among the
trusted elite, have been incomplete or flawed on technical grounds
(although that may be less of a barrier to adoption than initially
hoped).

It's not like these barriers are going to last forever; they're
getting used up, and companies like VISA are now trying to develop
some kind of authentication scheme.  But they're not used up yet.
Hey, don't be too discouraged; have a little perspective. It's
going a lot faster than the adoption of paper money went.

Bear





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Re: Stegdetect 0.4 released and results from USENET search available

2001-12-25 Thread Ray Dillinger



On Fri, 21 Dec 2001, Harald Koch wrote:

>How many images are posted to usenet every *day*, never mind the sheer
>number of images stored on webservers everywhere. IANAS, but a mere one
>million messages is too small a sample set to be statistically
>significant.


Actually, statistically significant sample sizes have more to do with
the probability distribution than the sheer number of objects being
analyzed.  One million images has the same statistical significance
whether it's one day of traffic or one year of traffic.

Bear





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Re: [FYI] Did Encryption Empower These Terrorists?

2001-09-26 Thread Ray Dillinger



On Wed, 26 Sep 2001, Enzo Michelangeli wrote:

>As Ben noted, it is not difficult to combine the following two
>requirements:
>
>a) protection of PAN from any party different from cardholder or acquiring
>bank 
>b) no special software installed on cardholder's PC besides an SSL-capable
>browser
>
>For example, let's suppose that the acquirer run a stateful trusted and
>well protected machine (gateway), and the merchant a simple secure web
>server whose CGI scripts can act as SSL clients. The transaction protocol
>could work this way:

A few problems:  

1) in a typical credit card transaction, the seller neither knows, 
   nor cares, what bank issued the credit card.  Thus, connecting 
   to the correct gateway becomes a minor problem. 

2) No provision for dispute resolution.  What happens in a month 
   and a half when george gets his credit card bill back and says 
   "I've never been there and never done any business with this 
person"?  The bank generates a chargeback and sends it to the 
merchant who, in the absence of knowledge about the buyer's 
identity, has no recourse.  George may or may not be the person 
who made the transaction; but the merchant has no way to even 
begin to try to find out. 


In general, "anonymity" and "credit" are immiscible.  If you want 
anonymous transactions, you absolutely cannot abide by the laws 
that require chargebacks, merchant and/or bank liability in case 
of fraud (instead of consumer liability), etc.  Compliance with 
those laws requires the merchant and banks to have the very 
information that anonymity prohibits them from having.

For anonymous transactions, you want something a whole lot more like 
cash, with the same failure modes (ie, no shift of liability in case 
of fraud) as cash.  That requires infrastructure which will not be 
allowed to be built.


>
>1. At check-out time, the merchant server connects to the gateway with
>SSL, authenticates itself (even simple username/password is OK) and passes
>to the gateway the details of the transaction, minus the card number (that
>it doesn't have).
>
>2. The gateway creates a record in an internal database, stores the data
>there, and returns a unique and unguessable handle (a random-looking
>string with a length of a few tens of characters).
>
>3. The merchant server redirects the buyer's browser to the gateway,
>passing it the handle (e.g., appended to the URL as "get" parameter). Also
>this HTTP session is over SSL.
>
>4. The gateway prompts the buyer for the card number and other personal
>details, in a form also containing the handle as hidden field.
>
>5. The buyer enters the requested data, and submits. The gateway, through
>the handle, retrieves the transaction record, combines its data with the
>card number and other data entered by the buyer, processes the
>authorization request through the card associations' network, gets back
>the auth code, stores it in the database transaction record, and redirects
>the browser to a URL on the merchant server, again appending the record's
>handle as parameter.
>
>6. The merchant server gets the handle, opens another SSL connection (also
>authenticated) to a URL on the gateway also passing it the handle, and
>gets back a receipt confirming the authorization. It then displays a
>"Thank you" page to the buyer's browser, and communicates all the data to
>the division in charge for the order's fulfillment. The End.
>
>And lo: no fancy crypto (apart from SSL), which also helps performances;
>no client certificates; and no bulky wallets that someone gotta pay for
>(and have to be installed, and often crash Windows ;-) ). Also the
>merchant server just needs very simple and inexpensive SSL client
>software: cURL, CryptSSL+LWP, JSSE, whatever.
>
>The only piece still missing here is the cardholder authentication: the
>gateway is managed by the acquiring bank, but only the issuing bank has
>business relationships with the cardholder, and is in the position of
>putting in place authentication mechanisms. That's where 3D Secure may
>help.
>
>Cheers --
>
>Enzo
> 
>
>
>
>
>-
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Re: "Pirate Utopia," FEED, February 20, 2001

2001-09-24 Thread Ray Dillinger



On Mon, 24 Sep 2001, Nomen Nescio wrote:

>The Stegdetect paper proceeded to further analyze the 2+ images by
>looking for passwords that would produce meaningful messages from the
>hypothesized hidden content, via dictionary attack.  No valid passwords
>were found, and the authors concluded therefore that these were all
>false positives.  This does not seem to be a fully supported conclusion.

Actually, dictionary attacks reveal about sixty percent of passwords, 
so for every six passwords you find on a dictionary attack, you can 
infer ten actual stegotexts times the ratio between your analyzed and 
discovered (possibly-false) positives.  

While he has analyzed only two percent of his sample, that's a sufficient 
number that if even even a tenth of one percent of his positives were 
real he'd have discovered at least a few passwords. 

The paper is solid statistical methods; lack of any dictionary-yeilding 
passwords in that big a sample is very strong evidence that the sample 
is overwhelmingly made up of false positives.

Bear




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Re: SSSCA = Digital Rectal Thermometer Security Act ?

2001-09-10 Thread Ray Dillinger



On Mon, 10 Sep 2001, Ian BROWN wrote:

>Titles I and II of the draft are a truly bizarre mix. I provides the horrible 
>DMCA-on-crack that has mostly been discussed so far; but II is all 
>sweetness and light on encouraging the development of security systems and 
>training of personnel, including the appropriation of $135m annually by 2006 for 
>infosec R&D and training. Trying buy off certain industry and university sectors? 
>Somehow I think several magnitudes more pork would be required ;)


You can also read title II as creating a "guild" of people who are 
allowed to know this stuff or practice it.  I don't like that idea, 
myself.  I think that any time you have a class of people who are 
the only ones allowed to make a living on certain information, you 
wind up in a situation where there is an effective prohibition on 
anyone else *knowing* the information. And, let's face it, if knowing 
how to program becomes a guilded profession, we're going to lose about 
90% of our programming talent -- 'cause the really good ones are doing 
stuff a long time before they get actually trained.  If they're not 
allowed to mess with computers when they're fifteen and manic, and if 
they're not allowed to get over, around, and all through the system 
software the way they do, they'll never develop the interest and 
become CS majors and then the really good programmers they become 
now. 

Reading title I as outlawing general-purpose computers, title II 
appears to outlaw members of the general non-guilded public knowing 
how to program them.  

Bear




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Re: Outreach Volunteers Needed - Content Control is a Dead End

2001-08-31 Thread Ray Dillinger



On Wed, 29 Aug 2001, Dan Geer wrote:

>
>> Content control is a dead end.
>
>Folks,
>
>You only get an even number of {privacy, copyright} -- either the
>owner of information controls how it is used or he does not.  Either
>you embrace copyright-and-privacy, or you embrace neither.  
>
>It really is time to be careful what you ask for.


This is not how I see things being developed.  In fact, I'd say 
you only get an odd number of {privacy, copyright} -- either I 
control what happens on my machine, or someone else does.  
Right now, the copyright technologies we've been seeing are 
actively invasive of the information purchaser's privacy.

The whole "you can display it but you can't print even a little 
bit of it" thing that Adobe is doing, for example, is damned 
offensive: by what right do they take copyright to exclude fair 
use?  And while we're at it, let's look at the RIAA, the MPA, 
etc.  Does copyright allow them to control what software I can 
and cannot run in the so-called "Privacy" of my own home?  I 
don't think so. 

Shakespeare had a rich public domain to work with because there 
were no copyright laws in his era.  I'd say the world has been 
enriched by the fact.  So yes, even as a software author, writer 
of short stories, musician, and several other things, I'll 
cheerfully give up copyright in favor of privacy and think 
the world is a better place for it.  Copyright has gotten way 
too oppressive lately, it's time to enrich the public domain 
and allow creative people to do what they want with it.

Bear





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Re: Danish police: Not Safeguard Easy but passwords were weak

2001-08-13 Thread Ray Dillinger



On Thu, 9 Aug 2001, [iso-8859-1] Bo Elkjær wrote:

>It was reported in national media - including tv - that the police had
>succesfully _broken_ the encryption. This, it seems, is not the case. The
>police have managed to find the _passwords_ of the five encrypted computers.

And we're back to the easy chunk of cryptanalysis.  That 128-bit key 
doesn't do you a darn bit of good if it's derived from one of the two 
million most common words in your language.

In Finnish and/or German, I believe the working vocabulary isn't even 
that large; even in English, which has a huge vocabulary, two million 
words will include words that have been out of style for centuries.

There is no help for people who are not willing or able to store real 
entropy in their brains somehow. "Password: swordfish" just ain't gonna 
cut it when the rubber meets the road. 

And here is where we get to the cryptanalytic uses of those high-powered 
clusters some folk here have been admiring:  The fact is that the ability 
to chew through about two million words plus forty million variations 
as possible passwords, will get you a substantial number of decrypts no 
matter how good the system is.  No need for an exhaustive search of the 
huge keyspace until you've finished your exhaustive search of the 
relatively tiny vocabulary of the user's native language. 

Bear




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Re: moving Crypto?

2001-08-01 Thread Ray Dillinger



On Wed, 1 Aug 2001, Ben Laurie wrote:

>Richard Schroeppel wrote:
>> 
>> It's time to consider moving the annual Crypto conference out of
>> Santa Barbara.  The obvious places are Vancouver, Toronto, or
>> Mexico.  I know zilch about these places as conference venues.
>> Could someone knowledgable summarize the relative merits?
>
>How about London?
>
>Cheers,
>
>Ben.

The Domestic Terrorism Act of 2000 makes London as dangerous for 
crypto researchers as the DMCA makes the USA.  Remember, in 
England, you can be arrested for having "information useful to 
terrorists"

Bear




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Re: moving Crypto?

2001-08-01 Thread Ray Dillinger



On 31 Jul 2001, Derek Atkins wrote:

>Why do you say it's time to move the conference?  AFAIK, it's ALWAYS
>been in SB.  Too bad I can't make it this year :(
>
>-derek

It is time to move the conference because it is no longer safe for 
cryptography researchers to enter the USA. 

Bear





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A pattern emerges...

2001-07-29 Thread Ray Dillinger


Consider the DMCA (US law) as compared to the Terrorism Act of 2000 
(UK law).  Both make it effectively illegal for ordinary citizens 
to own, use, or distribute any software capable of performing 
decrypts by exploiting a weak cryptographic system. 

The US and UK, not coincidentally, are the two governments with the 
largest known investments in SIGINT -- the famous Echelon System. 

If people started using strong cryptographic systems, Echelon would 
be effectively useless.  Therefore it is in the best interests of 
these two governments to make weak cryptographic systems the norm 
insofar as they are able. 

This is possible by providing an additional layer of legal protection 
to users of weak cryptographic systems -- with software capable of 
exploiting such weaknesses effectively illegal to own or use, the 
developers of such products have drastically reduced incentive to 
develop strong cryptographic systems to replace them. 

The DMCA and the Terrorism Act appear to provide exactly such laws. 
What has been passed recently by the other signatories to the UKUSA 
agreement that created Echelon?

Bear





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pseudonymous decentralized marketplace

2001-07-12 Thread Ray Dillinger



I've been attempting to design a decentralized auction/
exchange system that permits pseudonymous participants.  

By 'decentralized', I mean that NO central server, or 
subset of individual servers, controls access to any 
resource the system cannot work without; that there 
is no single point of failure. 

A consequence of this is that every ability that exists 
in any node, must exist in every node.  So the whole 
problem of currency issue gets the slightly weird 
solution of "everybody has to be able to print their 
own money."  

The sticking point is that this basically means the 
system will be without any single universal "currency".
A lot of E-cash techniques are usable, but what you wind 
up trading is certificates that represent goods or 
services offered by individuals in the system -- Alice 
the Farmer might issue certificates for bushels of 
wheat, while Bob the Carpenter might issue a bunch of 
certificates that say "collect a thousand of these and 
I'll redeem them for a new 10x10 meter deck on your house" 
and Carol the moneychanger might promise to redeem hers 
for one US dollar each, just for the amusement value of 
"redeeming" something in a system where hard currencies 
are the norm with a fiat currency. So these would be  
effectively a sort of digital merchants scrip, reducing 
back down to barter.

Exchange rates between the currencies issued by different 
participants would fluctuate according to trust and 
commodity values, and I'm okay with that.  Given the 
nature of the trust/reputation thing, I'd expect only 
a very small percentage of the participants to *actually* 
issue their own currency, as they wouldn't get good 
acceptance/exchange values until widely known, but 
everybody would have the ability.

The problem I'm running into is that while all kinds of 
e-cash protocols exist that protect the anonymity of 
the buyer and a lot protect the anonymity of the seller, 
there are none that protect the anonymity of the currency 
issuer, which would be ideal in this circumstance.  With 
the techniques I know of, the issuer can have only "Nym" 
protection. 

The basic problem with anonymizing the issuers (beyond 
technique alone) would be how the scrip gets redeemed 
when you don't necessarily know whom the issuer is.

Can anybody recommend appropriate reading?



Bear




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Re: blocking chinese domains?

2001-07-02 Thread Ray Dillinger



On Mon, 2 Jul 2001, Helger Lipmaa wrote:

>to mirror interesting-to-them but sensible-in-content sites? My own
>collection of cryptographic pointers,
>http://.xxx.xx.xxx/x/crypto
   has been mirrored a while as
>http://.xx.xx.cn//xcrypto/

When people are doing what they can do to evade censorship in a 
repressive state, it is best not to draw attention to them.  
Often their continued existence is largely a matter of how well 
they can maintain a low profile.

Bear





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