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Date: Sat, 13 Jan 2018 03:44:03 +0000
From: nullius <nullius@nym.zone>
To: Damian Williamson <willtech@live.com.au>,
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Subject: Re: [bitcoin-dev] Plausible Deniability (Re: Satoshilabs secret
 shared private key scheme)
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Preface:  As a longstanding policy, whenever I buy a new hard disk or=20
decommission an old one, I immediately `dd` it from start to end with a=20
pseudorandom byte stream.  The result is indistinguishable from my disk=20
encryption setup, which leaves no apparent on-disk headers.  I don=E2=80=99=
t do=20
this for =E2=80=9Cplausibility=E2=80=9D reasons, but rather, 0. to assure t=
hat=20
immediately upon use, any sectors written with disk encryption cannot be=20
distinguished from unwritten sectors, and 1. to make things overall more=20
fun for potential cryptanalysts.  I do realize the small problem that I=20
can=E2=80=99t affirmatively prove any particular disk in my possession to *=
not*=20
contain decryptable data; and many of them don=E2=80=99t!

(I think that next, I may start writing my disks with headers for LUKS,=20
which I do not use...)

Whereupon, I challenge plausible deniability designers to `dd` a 6TB=20
disk with pseudorandom bytes, then try walking it across the U.S. border=20
until it gets searched.  What could possibly go wrong?  Should you be=20
ordered to decrypt it, the disk *could* be *plausibly* filled with=20
pseudorandom bytes; and you would not be committing the crime of lying=20
to an officer, when you truly state that in fact, it *is* filled with=20
pseudorandom bytes.

Please, I want to see this =E2=80=9Cplausible deniability=E2=80=9D theory i=
n action. =20
You owe it to your users to test the theory empirically, in=20
circumstances in which users have here reported applying it.

Now, in reply:

On 2018-01-13 at 02:11:08 +0000, Damian Williamson=20
<willtech@live.com.au> wrote:
>The same problems exist for users of whole disk encrypted operating=20
>systems. Once the device (or, the initial password authentication) is=20
>found, the adversary knows that there is something to see.

Or PGP.  Or in a broader sense, Tor.  Or in the physical world, a=20
high-security safe bolted to your floor.  Security systems attract=20
attention.  Smart people develop appropriate threat models, keep their=20
security systems confidential where it is practical to do so (don=E2=80=99t=
 brag=20
about your high-security safe), and work to increase the popularity of=20
network security systems (PGP, HTTPS, Tor...) to reduce how much they=20
stand out.

In the context of this discussion, it does help that Bitcoin is becoming=20
popular.  It would help much more if Trezors and similar devices were as=20
commonplace as iGadgets.  But when considering the potential threats to=20
any specific individual, the only =E2=80=9Cplausibility=E2=80=9D shield is =
to not seem=20
like someone who is likely to have *much*.  Of course, this is not a=20
problem specific to Bitcoin.  Depending on the threat, the same danger=20
applies to owning a substantial amount of gold, cash, or even money in a=20
bank.

>The objective of plausible deniability is to present some acceptable=20
>(plausible) alternative while keeping the actual hidden (denied).
>
>If the adversary does not believe you, you do indeed risk everything.

And therein lies the trick.  Unsophisticated adversaries such as common=20
criminals may be fooled, or may not care if they can quickly grab=20
*something* of value and run away.  But if your threat model may=20
potentially include any adversaries possessed of both brains and=20
patience, =E2=80=9Cplausible deniability=E2=80=9D solves nothing.  Such an =
adversary=20
will not likely be satisfied with the standard of =E2=80=9Cplausibility=E2=
=80=9D.  More=20
likely, the prevailing standard will be:  =E2=80=9CI wasn=E2=80=99t born ye=
sterday, and=20
I *know* that you are hiding something.=E2=80=9D

>[snip extended prior quotations]

--=20
nullius@nym.zone | PGP ECC: 0xC2E91CD74A4C57A105F6C21B5A00591B2F307E0C
Bitcoin: bc1qcash96s5jqppzsp8hy8swkggf7f6agex98an7h | (Segwit nested:
3NULL3ZCUXr7RDLxXeLPDMZDZYxuaYkCnG)  (PGP RSA: 0x36EBB4AB699A10EE)
=E2=80=9C=E2=80=98If you=E2=80=99re not doing anything wrong, you have noth=
ing to hide.=E2=80=99
No!  Because I do nothing wrong, I have nothing to show.=E2=80=9D =E2=80=94=
 nullius

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