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

Daniel A. Nagy nagydani at epointsystem.org
Mon Oct 24 15:38:36 PDT 2005

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.


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