Re: [fc-discuss] Financial Cryptography Update: On Digital Cash-like Payment Systems

One intresting security measure protecting valuable digital assets (WM protects private keys this way) is "inflating" them before encryption. While it does not protect agains trojan applications, it does a surprisingly good job at reducing attacks following the key logging + file theft pattern. This security measure depends on two facts: storage being much cheaper than bandwidth and transmission of long files being detectable, allowing for detecting and thwarting an attack in progress. -- Daniel