On 6/15/2012 2:14 PM, KZK wrote:

Eve cuts the wire between Alice and Bob (AB line) and insert her own
node that connects to Alice (AE line) and Bob (BE Line) individually.
Alice can't tell the difference between the AB line or the AE Line
and sets her resisters. Eve sets her resisters connected on the AE
line to random and deciphers the sequence that Alice used. Eve then
Uses that sequence on the BE Line. Bob can't tell the difference
between the AB line and the BE line, sets his resisters randomly and
decodes the message. (Eve can even send Bob a False message).

David Hobby Fri, 15 Jun 2012 06:31:29 -0700:

I believe that Alice and Bob are doing the resistor thing for each
bit simultaneously, and sharing their measurements over a separate
open channel.

And so Eve man-in-the-middles the second connection too. So all of Alice and Bob's communications are with eve, so that (Eve and Alice) And (Eve and Bob) are doing the resistor thing for each bit simultaneously (but not Alice and Bob, they have no connection with each other), and (Eve and Alice) And (Eve and Bob) are sharing their measurements over the separate lines (but not Alice and Bob, they have no connection with each other). Bob still can't tell the difference between Eve and Alice and Alice can't tell the difference between Eve and Bob.
...
Doesn't matter, so long as Eve is between all communications channels.

Between ALL communications channels, even the public ones?  That's asking
rather a lot of Eve. I think there are a lot of people who would use a cryptographic system that required an additional open channel, confident that they could somehow route around Eve most of the time. (Alice and Bob could be just posting their versions of the public information on their respective websites, and checking that
they agreed.)

But yes, it's a minor flaw that was not mentioned in the press release.

            ---David

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