12-16-2014
Source code gives them where the keys are stored, if they can get to code.
The point is not any of the above. Where do you store the key to decrypt the half-key?
This is a logical fallacy. It is called circular reasoning. I need a key to decrypt a key. I still have to store that secondary key somewhere, or the system will have to regenerate it. Regenerate means I can see it in the source. Storage means it is a sitting duck, unencrypted.
I agree that simply having the algorithm and knowing the block cipher is not a complete solution, but the logic behind this needs some work. Having the source also means shell code or another crack is now a possibility.
There is far more to security than passwords. We have a large number of fairly insecure old unpatchable windows servers. They have many known exploits. They are pretty safe.
Why? Because getting to them externally is really hard, you have to hack several external software and physical barriers to get at them. But they could be trashed by an internal employee easily. So we have to have trust somewhere. ROI.
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