1. INTRODUCTION Does increased security provide comfort to paranoid people?

Or does security provide some very basic protections that we are naive to believe that we don't need? During this time when the Internet provides essential communication between tens of millions of people and is being increasingly used as a tool for commerce, security becomes a tremendously important issue to deal with. There are many aspects to security and many applications, ranging from secure commerce and payments to private communications and protecting passwords. One essential aspect for secure communications is that of cryptography, which is the focus of this chapter. But it is important to note that while cryptography is necessary for secure communications, it is not by itself sufficient. The reader is advised, then, that the topics covered in this chapter only describe the first of many steps necessary for better security in any number of situations. This paper has two major purposes. The first is to define some of the terms and concepts behind basic cryptographic methods, and to offer a way to compare the myriad cryptographic schemes in use today. The second is to provide some real examples of cryptography in use today. I would like to say at the outset that this paper is very focused on terms, concepts, and schemes in current use and is not a treatise of the whole field. No mention is made here about pre-computerized crypto schemes, the difference between a substitution and transposition cipher, cryptanalysis, or other history. Interested readers should check out some of the books in the bibliography below for this detailed and interesting! background information.

2. THE PURPOSE OF CRYPTOGRAPHY Cryptography is the science of writing in secret code and is an ancient art; the first documented use of cryptography in writing dates back to circa 1900 B.C. when an Egyptian scribe used non-standard hieroglyphs in an inscription. Some experts argue that cryptography appeared spontaneously sometime after writing was invented, with applications ranging from diplomatic missives to war-time battle plans. It is no surprise, then, that new forms of cryptography came soon after the widespread development of computer communications. In data and telecommunications, cryptography is necessary when communicating over any untrusted medium, which includes just about any network, particularly the Internet. Within the context of any application-to-application communication, there are some specific security requirements, including:

Authentication: The process of proving one's identity. (The primary forms of host-to-host authentication on the Internet today are name-based or address-based, both of which are notoriously weak.)

Privacy/confidentiality: Ensuring that no one can read the message except the intended receiver. Integrity: Assuring the receiver that the received message has not been altered in any way from the original. Non-repudiation: A mechanism to prove that the sender really sent this message.

Cryptography, then, not only protects data from theft or alteration, but can also be used for user authentication. There are, in general, three types of cryptographic schemes typically used to accomplish these goals: secret key (or symmetric) cryptography, public-key (or asymmetric) cryptography, and hash functions, each of which is described below. In all cases, the initial unencrypted data is referred to as plaintext. It is encrypted into ciphertext, which will in turn (usually) be decrypted into usable plaintext. In many of the descriptions below, two communicating parties will be referred to as Alice and Bob; this is the common nomenclature in the crypto field and literature to make it easier to identify the communicating parties. If there is a third or fourth party to the communication, they will be referred to as Carol and Dave. Mallory is a malicious party, Eve is an eavesdropper, and Trent is a trusted third party.

Types of Cryptography There are two main types of cryptography:

Secret key cryptography Public key cryptography

In cryptographic systems, the term key refers to a numerical value used by an algorithm to alter information, making that information secure and visible only to individuals who have the corresponding key to recover the information. Secret key cryptography is also known as symmetric key cryptography. With this type of cryptography, both the sender and the receiver know the same secret code, called the key. Messages are encrypted by the sender using the key and decrypted by the receiver using the same key. This method works well if you are communicating with only a limited number of people, but it becomes impractical to exchange secret keys with large numbers of people. In addition, there is also the problem of how you communicate the secret key securely. Public key cryptography, also called asymmetric encryption, uses a pair of keys for encryption and decryption. With public key cryptography, keys work in pairs of matched public and private keys.

The public key can be freely distributed without compromising the private key, which must be kept secret by its owner. Because these keys work only as a pair, encryption initiated with the public key can be decrypted only with the corresponding private key. The following example illustrates how public key cryptography works:

Ann wants to communicate secretly with Bill. Ann encrypts her message using Bills public key (which Bill made available to everyone) and Ann sends the scrambled message to Bill. When Bill receives the message, he uses his private key to unscramble the message so that he can read it. When Bill sends a reply to Ann, he scrambles the message using Anns public key. When Ann receives Bills reply, she uses her private key to unscramble his message.

The major advantage asymmetric encryption offers over symmetric key cryptography is that senders and receivers do not have to communicate keys up front. Provided the private key is kept secret, confidential communication is possible using the public keys.