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  • The encrypted text can be stored in a readable file, or transmitted over unprotected channels.
  • To make sense of the cipher text, it must be decrypted back into clear text. This is done with some other algorithm that uses another secretpassword or number, called the decryption key.

All of this only works under three conditions:

  • The encryption function cannot easily be inverted (cannot get back to clear text unless you know the decryption key).
  • The encryption and decryption must be done in some safe place so the clear text cannot be stolen.
  • The keys must be protected. In most systems, can compute one key from the other (sometimes the encryption and decryption keys are identical), socannot afford to let either key leak out.

Public key encryption: new mechanism for encryption where knowing the encryption key does not help you to find decryption key, orvice versa.

  • User provides a single password, system uses it to generate two keys (use a one-way function, so cannot derive password from either key).
  • In these systems, keys are inverses of each other: each one could just as easily encrypt with decryption key and then use encryption key to recover clear text.
  • Each user keeps one key secret, publicizes the other. Cannot derive private key from public. Public keys are made available to everyone, in aphone book for example.

Safe mail:

  • Use public key of destination user to encrypt mail.
  • Anybody can encrypt mail for this user and be certain that only the user will be able to decipher it.

It is a nice scheme because the user only has to remember one key, and all senders can use the same key. However, how doesreceiver know for sure who it is getting mail from?

Digital signatures

Positive identification: can also use public keys to certify identity:

  • To certify your identity, use your private key to encrypt a text message, e.g. "I agree to pay Mary Wallace $100 per year for the duration oflife."
  • You can give the encrypted message to anybody, and they can certify that it came from you by seeing if it decrypts with your public key.Anything that decrypts into readable text with your public key must have come from you! This can be made legally binding as a form of electronic signature.

This is really even better than signatures: harder to forge, and can change if compromised. Note that this idea was developed by anundergraduate (Loren Kohnfelder) in 1978 as part of his undergraduate thesis (at MIT).

These two forms of encryption can be combined together. To identify sender in secure mail, encrypt first with your privatekey, then with receiver's public key. The encryption/decryption functions to send from B to A are:

Encryption appears to be a great way to thwart listeners. It does not help with Trojan Horses, though.

Old federal Data Encryption Standard (DES). Is not public-key based, but has been implemented efficiently and appears to berelatively safe.

New Advanced Encryption Standard (AES), called Ryndal.

General problem: how do we know that an encryption mechanism is safe? It is extremely hard to prove. This is a hot topic forresearch: theorists are trying to find provably hard problems, and use them for proving safety of encryption.

Summary of Protection: very hard, but is increasingly important as things like electronic funds transfer become more andmore prevalent.

Acknowledgment

We would like to thank Prof. Barton Miller for sharing as well as for his valued advice

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
Husseini Reply
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Jahara
Good morning
Jorge
hi
abubakar
hi
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hi
Mahesh
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
all of you please speak in English I can't understand you're language
Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
Kalombe
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, Operating systems. OpenStax CNX. Aug 13, 2009 Download for free at http://cnx.org/content/col10785/1.2
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