This is the most confusing part of the whole thing.. How does it get started. unfortunately, as this is embroiled in non-disclosure and patent-pending, we're not going to know, but are forced to take the word of experts such as David Kahn that it works as advertised.
Has David Kahn made such a statement? Where can I read the context in which it was made? Kahn is a historian of cryptography, not a cryptographer. On the basis of the documents made avaliable to me it looks like the standard linear feedback sequence generator hack. It does not appear to be a one time pad system in anything but name.
Yes, I and a friend of mine were the only two people in the audience that were not Journalists. It does look rather intruguing, but so much negativism is flying about, that most people have dismissed it out of hand.
Often the best thing to do. I don't know who designed POTP nor what they created but if I use it and it fails I take the risk. Note that in the Mondex case if it fails Mondex take the hit. As a final point one the security of one time pads is only guaranteed as long as the pads are never reused in any sense whatsoever. The system is exceptionaly fragile, the slightest breach of secuirty can destroy it, consider the Venona decrypts for example. I'm thinking of writing a paper "How One Time Pads Fail" to discuss failures of "unbreakable systems". I have some new material on how to copy the Venona cracking method and also plan to analyse POTP and a few other alledged one time pad systems. If anyone knows of other alledged one time pad systems that weren't please email me and I'll include them. Phill