NIST Opens Competition for a New Hash Algorithm
Invisible Pink Unicorn writes "The National Institute of Standards and Technology has opened a public competition for the development of a new cryptographic hash algorithm, which will be called Secure Hash Algorithm-3 (SHA-3), and will augment the current algorithms specified in the Federal Information Processing Standard (FIPS) 180-2. This is in response to serious attacks reported in recent years against cryptographic hash algorithms, including SHA-1, and because SHA-1 and the SHA-2 family share a similar design. Submissions are being accepted through October 2008, and the competition timeline indicates that a winner will be announced in 2012."
Encryption implies that you can reconstruct the original string from the encoded. Methods like md5, sha1, etc are one way algorithms that cannot be reversed* in a realistic amount of time.
* - Rainbow tables
Wah Sig!
The NSA has an actual track record here, and their motives have proven good so far. However, they claim that (due to lack of funding and too much competition from financial firms for math PhDs) they aren't so far ahead any more.
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It is worth emphasizing that the NSA has said that AES 128/192/256 can be used to protect information up to the secret level, and that top secret information can be secured with AES 192 or 256. That's a pretty strong statement coming from the NSA, which if acting rationally they would not want to leave weaknesses in something that is used to secure information that would be, by definition, "very damaging to the US and its interests if released."
Now, it is possible that such statements are just for show, but it takes a belief that they are playing an incredulously deep game that they would make those statements as a denial and deception practice.
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Maybe you should chase the etymology one level deeper. If the original data cannot be recovered then it is not "hidden" but "destroyed". You may not believe that the term encryption means a two-way process with an available decryption function - but that is the definition that the crypto community uses, and so it's good enough for me.
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Modern encryption *does* protect you from malicious altering of information. I encourage you to read up on Message Authentication Code (and all it's sundry relatives, UMAC, HMAC, CMAC). By changing just one character in an encrypted block, you have just caused the MAC to show a mismatch and invalidate the integrity and authenticity of the data. Unless they have the key used for encryption (which would raise the question of why they simply substituted characters in an encrypted field), they are shit out of luck trying to fool anyone. Yes, the cipher block is useless, but no one will be "tricked" by the changed grade, either.
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And there's evidence that the NSA understood quite a bit more about cryptography back in the DES days based on a change they made ot it that hardened it against an as of yet unknown kind of attack.
However being a bit ahead in terms of creating a system is real different form being far enough ahead to break systems. To mistrust the NSA on AES means you figure that they know enough to know how to break it, and that they figure the knowledge is so far advanced that no one else will figure it out. One of the NSA's jobs is actually "To achieve information assurance for information infrastructures critical to U.S. national security interests." They are tasked with things like making sure that US financial systems aren't broken in to, hence things like DES/AES. As such if they knowingly allowed a breakable cryptosystem to become the standard and it was in fact broken, they'd have failed in that and have shit to answer for.
So while I certainly believe they are the best in the business, and while I'd not be surprised to discover they know things that public does not, it would imply a staggering advance in cryptography for them to be able to break AES and figure that the public can't. In fact, it would probably imply something along the Tom Clancy lines of a computer that could break ANY machine based cypher and as such no matter what crypto you used short of a one time pad, you'd be screwed.
I just don't find it reasonable to believe that. I find it more reasonable to believe that since good crypto is out there anyhow, and since their job is to protect US interests, that they did an honest analysis of AES and found it to be highly secure, just as everyone else did.