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    Cryptography

    Your organization's network may consist of intranets,

    Internet sites, and extranets -all of which are potentially

    susceptible to access by unauthorized individuals who may

    maliciously view or alter your digital information assets.

    A well-planned Public Key Infrastructure (PKI) can help

    you to secure data and distribute and manage identification

    credentials across your organization.

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    Public key cryptography is an important technology for e-

    commerce, intranets, extranets, and Web-enabled

    applications. The two fundamental operations associated

    with public key cryptography include encryption and

    authentication.

    Windows Network uses public key cryptography in areas

    such as smart card logon, encryption File System (EFS), and

    Internet Protocol Security (IPSec).

    Public key cryptography provides privacy through data

    encryption, whether the data is in the form of e-mail

    messages, credit-card numbers sent over the Internet, ornetwork traffic. Because public keys can be posted freely,

    complete strangers can establish private communications

    over public networks merely by retrieving each other's

    public keys and encrypting the data.

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    Using Public Keys and Private Keys

    Public key encryption uses two keys that aremathematically related. A key is a random string-such as a

    number, ASCII value, word, or phrase-that is used in

    conjunction with an algorithm. For public key encryption,

    every user has a pair of mathematically related keys,including:

    A private key, which is kept confidential.

    A public key, which is freely given out to all potentialcorrespondents.

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    Encrypting and Decrypting Text

    The fundamental property of public key encryption is

    that the encryption and decryption keys are different

    Encryption with a public key is a one-way function.

    When you encrypt a document with a public key,plaintext turns into cipher text. A decryption key,

    which is related but not identical to the encryption key,

    is needed to turn the cipher text back into plaintext. If

    someone intercepts an encrypted message in

    transmission, the message is in cipher text and isunreadable.

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    Digital Signatures

    A digital signature is a means for the originator of a

    message, file, or other digitally encoded information to

    bind his or her identity to the information. The

    signature itself is a sequence of bits appended to a

    digital document. A digital signature ensures that:

    Only someone possessing the private key could have

    created the digital signature.

    Anyone with access to the corresponding public keycan verify the digital signature.

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    Digital envelope

    A type of security that uses two layers of encryption to protect a message. First,

    the message itself is encoded using symmetric encryption, and then the key todecode the message is encrypted using public-key encryption. This technique

    overcomes one of the problems of public-key encryption, which is that it is

    slower than symmetric encryption. Because only the key is protected with

    public-key encryption, there is very little overhead.

    Digital envelope means -

    (1) An encrypted message that uses both secret key and public key cryptography

    methods. A secret key is used to encrypt and decrypt the message, but the public

    key method is used to send the secret key to the other party.

    (2) A frame, or packet, of data that has been encrypted for transmission over anetwork.

    (3) A term occasionally used to describe inserting data into a packet or frame for

    transmission over a network. The envelope metaphor implies a container.

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    Hash Algorithms

    A digital signature uses an algorithm called a hash algorithm.

    Hash algorithms are designed to guarantee that if a singlebyte changes, processing the document generates a

    completely different hash. When a hash is encrypted by using

    a public key, any modification of the signed data invalidates

    the digital signature.

    A certification authority (CA) is responsible for providing

    and assigning the keys for encryption, decryption, and

    authentication. A CA distributes keys by issuing certificates,

    which contain the public key and a set of attributes. A CAcan issue certificates to a computer, a user account, or a

    service.

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    Certificates

    Certificates are signed documents that match public keys

    to other information, such as a name or an e-mail address.Certificates are signed by CAs that issues certificates. A

    CA's signature guarantees that the public key does indeed

    belong to the party that presents it.

    External and Internal CAsA CA can be an external issuing company, such as a large

    commercial CA that issues certificates to millions of users.

    Or a CA can be internal, such as department within a

    company that has installed its own server for issuing andverifying certificates. Each CA decides what attributes it

    includes in a certificate and what mechanism it uses to

    verify those attributes before issuing the certificate.

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    The process of rendering a message (or data)unusable to all but the intended recipients, whohave the ability to decrypt it. Cryptography is thescience of creating workable procedures for

    encrypting and decrypting messages. The goal isto ensure that a message intercepted by adistrusted user cannot be decrypted in a feasibleamount of time.

    It is the process of transforming plain text intounreadable form (called cipher text) usingmathematical process/algorithm.

    What is Encryption?

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    Method of Encryption and

    Transaction Security -

    Secret-Key Encryption / SymmetricEncryption

    Public-Key Encryption / AsymmetricEncryption

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    Comparing Secret-Key Encryption and Public-Key

    Encryption Methods

    Features Secret Key Public Key

    Number of

    Keys

    Single key Pair of keys

    Types of Keys Key is secret One key is private, and one key is

    public.

    Key

    Management

    Simple but

    difficult to manage

    Need digital certificates and trusted

    third parties

    RelativeSpeeds Very fastSlower than Secret Key

    Usage Used for bulk data

    encryption

    Used for less demanding applications

    such as encrypting small documents

    or to sign messages.

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    Encrypt with

    secret key

    Anne

    (Sender)

    Bob

    (Receiver)

    Secret-Key Encryption

    Inte

    rnet

    Plain Text

    Cipher Text

    Plain Text

    Cipher Text

    Decrypt with

    Same secret

    key

    Encryption Key = Decryption Key

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    Public Key and Private Key are mathematically related.

    A key is a random string such as a number, ASCII value, Word or Phrase that is used

    in conjunction with an algorithm. Cryptographic security depends on three broad parameters viz:

    - Secrecy of the Key

    - Key Length

    - Strength of the cipher

    Encrypt withSellers Public key

    Sender/

    Buyer

    Receiver /

    Seller

    Public-Key Encryption

    Internet

    Plain Text

    Cipher Text

    Plain Text

    Cipher Text

    Decrypt with SellersPrivate key

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    The process of creating a digital signature using a hash function

    Figure => Send Message with Encryption at Transmitting End.

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    The process of verifying a digital signature created with a hashfunction

    Figure => Receive Message with Decryption at Receiving End.

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    SenderS

    ide

    Receiv

    erSide

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    Key Length

    Key length is the third guarantor of cipher

    security. If the parties successfully protect keys

    and the cipher is strong, then it falls to key length

    to provide adequate security.

    In contemporary cryptography the key is a

    numerical value that is input to the cipher to cause

    it to encrypt the data in a unique way.

    For a strong cipher and a secure key, an opponent

    is forced to resort to trying all possible keys.

    If the key is long, it has many possible values, andthe miscreant is faced with the difficult task of

    trying large number of combinations.

    Thus, security is closely related to the length of

    the key. Key length is usually given in bits. A key

    of n bits has 2n possible values.

    Depending on the cipher, today's commercial

    computers are able to try roughly a few trillion

    keys per second or0.4583 * 1020keys per year.

    The table below lists the number of keys and theestimate time it takes to break a key for various

    key lengths using conventional computers and

    contemporary ciphers.

    Key length in bits Number of keys Time to break Keys

    24 0

    32 4.3 billion 2.9 millisecond

    40-DES 1.1 trillion 0.75 seconds

    56 - Current US export

    limit

    7.2 thousand trillion1.37hours

    64 1.8 million trillion 14.33 days

    128 - Advanced

    Encryption Standard

    (AES)

    3.4* 10 38

    [34 followed by 37

    zeros]

    7.2 million trillion

    years

    256

    1.1 * 1077

    [11 followed by 76

    zeros]

    2.4* 1057 years

    [24 followed by 56

    zeros]

    5121.3* 10 154

    [13 followed by 153

    zeros]

    2.8 * 10133 years

    [28 followed by 132

    zeros]

    Key size, number of keys and time to break:

    1024 1.8 * 10308 4 * 10285 years

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    Hacking (Key Breaking) Speed of a standard

    powerful computerDuration No. of Keys

    Generated / Recognize

    Per Second 14.5 * 1011

    Per Hour 52.32 * 1014

    Per Day 1.256 * 1017

    Per Year (11/24) * 1020

    = 0.4583 * 1020

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    Encryption Algorithm/Protocol

    Public-Key Algorithm:

    RSA (Rivest-Shamir-Adelman)

    Diffie-Hellman Algorithm

    PGP (Pretty Good Privacy)

    ECC (Elliptic Curve Cryptography)

    Private-Key Algorithm:

    DES (Data Encryption Standard) /

    3DES

    RC4

    IDEA (International Data

    Encryption Algorithm)

    Encryption Protocol:

    SSL (Secure Socket Layer) Developed by Netscape Communication Ltd.

    SET (Secure Electronic Transaction) Developed by Visa and Master Card

    Corp.

    ** Different Algorithm uses diff. length of Keys ranges 40 1024 / 2048. The

    longer the key string digits, the more time requires and the more difficult the

    encrypted data is to break. But the transaction speed will be slower.

    * 3DES is more secure than DES because it uses DES algorithm 3 times and

    follows an enc-dec-enc sequence with 3 different unrelated keys.

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    security for e-payments

    types of encryption systems

    symmetric (private key)

    same key used to encrypt and decrypt plain text

    shared by sender and receiver

    asymmetric (public key)

    different keys used public key to encrypt message

    private key to decrypt it

    public key encryption systems

    have needed long keys (512-1024 bits) to ensure security but long keys slow down encryption and decryption

    RSA algorithm most common PK encryption algorithm

    Rijndael algorithm uncrackable with 128-bit key

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    digital signatures and certificates

    digital signatures needed for authenticity and nonrepudiation

    analogous to handwritten signature

    based on public keys

    used to:

    authenticate the identity of the sender of a message or

    document ensure the original content of the electronic message or

    document is unchanged

    portable and can be time stamped

    not easily imitated or repudiated

    digital certificates identifying the holder of a public key (key-exchange)

    issued by a trusted certificate authority (CA)

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    public key encryption and digital signatures

    E Turban et al.,Electronic Commerce- a Managerial Perspective (Prentice Hall, 2nd ed, 2002), Ch. 14.