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To: Gregory Maxwell <greg@xiph.org>
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Cc: Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
Subject: Re: [bitcoin-dev] Satoshilabs secret shared private key scheme
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I think you're under-appreciating how useful the "plausible deniability". S=
omeone I know was (solo) traveling to the United States when a border agent=
 asked her to unlocked her phone; thumbed through her apps, ended up findin=
g tinder and went through all her recent conversations to make sure she was=
n't involved in any "pay for sex things".

In the same light, I travel frequently and constantly have my trezor on me.=
 If I am asked to unlock it, I will have no problems doing so (as refusal w=
ill no doubt lead to deportation) and showing my personal wallet (which sad=
ly hasn't had much use since fees became ridiculous).

And by doing so, I won't be revealing the half a dozen other accounts I kee=
p. Which is the other big of such "plausible deniability" schemes, they mak=
e it trivial to create multiple wallets that are all firewalled away from e=
ach other.

I will hypothesize that if one of my wallets was for something like buying =
stuff on dark markets there's simply no way anyone is going to ever know wa=
y you're going to be to tell short of some movie-plot level police effort.=
=20



=E2=80=8B-Ryan

=E2=80=8B

>-------- Original Message --------
>Subject: Re: [bitcoin-dev] Satoshilabs secret shared private key scheme
>Local Time: January 8, 2018 5:47 PM
>UTC Time: January 8, 2018 11:47 PM
>From: bitcoin-dev@lists.linuxfoundation.org
>To: Pavol Rusnak <stick@satoshilabs.com>
>Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
>
>On Mon, Jan 8, 2018 at 12:39 PM, Pavol Rusnak stick@satoshilabs.com wrote:
>>On 08/01/18 05:22, Gregory Maxwell wrote:
>>>>https://github.com/satoshilabs/slips/blob/master/slip-0039.md
>>>>Hey Gregory!
>>Thanks for looking into the scheme. I appreciate your time!
>>>This specification forces the key being used through a one way
>>> function, -- so you cannot take a pre-existing key and encode it with
>>> this scheme.
>>>Originally, we used a bi-directional function to be able to encode and
>> decode the key in both directions using the passphrase. We stretched the
>> passphrase using KDF and then applied AES or other symmetric cipher
>>We found the following (theoretical) problem:
>>If an attacker has knowledge of few words from the beginning of shares,
>> they are able to reconstruct the beginning of the master secret and if
>> the size of the reconstruced master secret is bigger then the cipher
>> blocksize (for block ciphers; for stream ciphers 1 bit is enough), then
>> they can reconstruct the beginning of the seed.
>>Can you find a scheme which does not have this problem? Or you think
>> this problem is not worth solving?
>>
> You can use a large block cipher. E.g. CMC cipher mode.
>
> Though I am doubtful that this is a very relevant concern: What
> consequence is it if someone with partial access to more than a
> threshold of the shares can recover part of the seed?  This doesn't
> seem like a very interesting threat.   A large block mode would be
> more complete, but this isn't something that would keep me up at night
> in the slightest.
>
> Perhaps I'm missing something, -- but the only real attack I see here
> is that a enduser mistakenly shows the first or couple words of all
> their shares on national television or what not... but doing so would
> not really harm their security unless they showed almost all of them,
> and in that case an attacker could simply search the remaining couple
> words.
>
> Also, if we are going to assume that users will leak parts, the
> mnemonic encoding ends up being pretty bad... since just leaking a
> letter or two of each word would quite likely give the whole thing
> away.
>
> In any case, to whatever extent partial leaks are a concern, using a
> large block cipher would be the obvious approach.
>
>>Yes. We want this to be possible to be computed on TREZOR-like devices
>> on boot, similarly how we compute BIP39 on boot right now.
>>
> Under this constraint it might be arguably to just eliminate the KDF.
> I think it provides false security and makes the implementation much
> more complicated.
>
> Have you considered using blind host-delegated KDFs, where the KDF
> runs on the user's computer instead of the hardware wallet, but the
> computer doesn't learn anything about they keys?
>
>>Again, this is by design and it is main point why plausible deniability
>> is achieved both in BIP39 and SLIP39. If we used a different
>> construction we'd loose plausible deniability.
>>
> I don't believe you can justify this design decision with any kind of
> rigorous threat model.
>
> The probability that a user loses funds because they have at some
> point recovered with the wrong key and don't know it would almost
> certainly dwarf the probability that the user face some kind of
> movie-plot threat where someone is attempting to forcibly extract a
> key and yet somehow has no information about the user's actual
> wallet-- through, for example, leaked data on the users computers, the
> users past payments to online accounts, or through a compromise or
> lawful order to satoshilab's web service which the users send private
> information to-- which would allow them to determine the key they were
> given was not correct.
>
> But even there, given the weak level of false input rejection that you
> have used (16 bits), it would be fairly straight forward to grind out
> an alternative passphrase that also passed the test.  Might that not
> make for a better compromise?
>
> Another thing to consider is that the main advantage of SSS over
> ordinary computational secret sharing is that it's possible to
> generate alternative shares to an sub-threshold set of primary shares
> that decodes to arbitrarily selected alternative data-- but it seems
> the proposal makes no use of this fact.
>
>>>It
>>> is again, unversioned-- so it kinda of seems like it is intentionally
>>> constructed in a way that will prevent interoperable use, since the
>>> lack of versioning was a primary complaint from other perspective
>>> users.  Of course, it fine if you want to make a trezor only thing,
>>> but why bother BIPing something that was not intended for
>>> interoperability?  Even for a single vendor spec the lack of
>>> versioning seems to make things harder to support new key-related
>>> features such as segwit.
>>>This is argument I keep having all the time.
>>Suppose we'd introduce a version to encode PBKDF2 rounds or even
>> different KDFs. We'll end up with different SLIP39 mnemonics, but they
>> will not be compatible among implementations (because TREZOR can only up
>> to 100.000 rounds of PBKDF2 and does not support Argon2 at all, while
>> other desktop implementation would rather use memory-hard Argon2).
>>My gut feeling is that this would lead to WORSE interoperability, not
>> better. Look at BIP32 for example. There are lots of wallet that claim
>> they are BIP32 compatible, but in reality they use different paths, so
>> they are not compatible. BIP32 is a good standard, but in reality
>> "BIP32-compatible" does not mean anything, whereas when you say the
>> wallet is "BIP44-compatible" you can be sure the migration path works.
>>
> The end result is no better-- I think.  If you compromise
> functionality or security (e.g. pretextual KDF) because your product
> doesn't yet support -- say, aggregate signatures-- or won't ever
> support a strong KDF; then other software will just not be
> interoperable.  In cases were you won't ever support it, that doesn't
> matter-- but presumably you would later support new signature styles
> and the loss of interoperability would potentially be gratitious.
>
> That said, I'm generally skeptical of key interoperability to begin
> with. Wallets can't share keys unless their functionality is
> identical, half-interoperability can lead to funds loss. Identical
> functionality would mean constraining to the least common denominator.
>
> But even if we exclude cross vendor interoperability entirely,
> wouldn't you want your next version of your firmware to be able to
> support new and old key styles (e.g. aggregate signatures vs plain
> segwit) without having to define a whole new encoding?
>
>>Originally, we wanted to use 16-bit of CRC32 for checksum, but after the
>> discussion with Daan Sprenkels we were suggested to change this for
>> cryptographically strong function. The argument was that CRC32 contains
>> less entropy and mixing high-entropy data (secret) with low-entropy data
>> (checksum) is not a good idea.
>>
> That sounds like a kind of hand-wave and cargo cult argument-- pleas
> be more specific, because that just sounds like amateur block cipher
> design.
>
> There isn't any difference in "entropy" in either of these cases.
>
> As an aside, using "n bits of a longer CRC" usually results in a low
> quality code for error detection similar to using a cryptographic
> hash.
>
>>Also, there is an argument between a checksum and ECC. We discussed that
>> ECC might not be a good idea, because it helps the attacker to compute
>> missing information, while we only want to check for integrity. Also the
>>
> Not meaningfully more than the truncated cryptographic hash.
>
> The best possible code of that length would allow you to list decode
> to around two errors with a lot of computation.
> With the cryptographic hash the attacker need only check the 2^28
> two-error candidates to do exactly the same thing.
>
> So the attacker there is no real difference-- he can brute force
> search to the same radius as correction would allow, but for the
> honest users and software the probability of undetected error is
> greater.  Similarly, while 2^28 operations is nothing to an attacker,
> if user software wants to use the correction for error hinting,
> running a hash 2^28 times would lead to a somewhat unfriendly user
> experience so non-attack tools would be pretty unlikely to implement
> it.
>
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