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

[Daniel A. Nagy]

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