CIPHERTEXT
The RSA Newsletter
Volume 1, No. 1, Fall 1993

A publication of RSA Data Security, Inc. Copyright _ 1993 RSA Data Security, 
Inc. All rights reserved. For reprints, call your RSA representative.




IN THIS ISSUE:

Clipper Controversy Continues 	Page 1

1994 RSA Data Security Conference	Page 1

Apple Ships System 7 Pro	Page 2

Internet PEM Arrives	Page 2

RSA Opens Certificate Services Center	Page 3

New Wireless Security Standards	Page 4

Arkhon Extends Kerberos With RSA	Page 4

Hilgraeve Licenses RSA for 
Best-Selling Asynch Package	Page 5

RSA Licensee Spotlight:  Datamedia	Page 5

Difficulty of Factoring	Page 6

Factoring Challenge Update	Page 6

RSA Laboratories Report	Page 6

PKCS Update	Page 7

Clipper: One Scientist's Perspective	Page 7

The SmartCard That Needs No Reader	Page 9

1994 RSA Conference Registration Form	Page 11






THE CLIPPER CONTROVERSY CONTINUES

The government's involvement in cryptography standards and public policy have 
again provoked strong reactions in the crypto community with the announcement 
of the Clipper Chip, an encryption scheme with an acknowledged, built-in 
system for government law-enforcement and intelligence agency monitoring. We 
present here a relatively technical overview of the proposal.  Dr. Martin 
Hellman offers his personal opinions later in this Newsletter.  -Ed.

Clipper is an encryption chip developed and sponsored by the U.S. government 
as part of the Capstone project. Announced by the White House in April, 1993 
Clipper was designed to balance the competing concerns of federal law-
enforcement agencies with those of private citizens and industry. The law-
enforcement agencies wish to have access to the communications of suspected 
criminals, for example by wire-tapping; these needs are threatened by secure 
cryptography. Industry and individual citizens, however, want secure 
communications, and look to cryptography to provide it.

Clipper technology attempts to balance these needs by using escrowed keys. The 
idea is that communications would be encrypted with a secure algorithm, but 
the keys would be kept by one or more third parties (the "escrow agencies"), 
and made available to law-enforcement agencies when authorized by a court-
issued warrant. Thus, for example, personal communications would be impervious 
to recreational eavesdroppers, and commercial communications would be 
impervious to industrial espionage, and yet the FBI could listen in on 
suspected terrorists or gangsters. In the case of Clipper, each key is split 
into two parts, each of which is stored at one of two escrow agencies; both 
parts must be known in order to recover the key.

Clipper has been proposed as a U.S. government standard; it would then be used 
by anyone doing business with the federal government as well as for 
communications within the government. For anyone else, use of Clipper is 
strictly voluntary. AT&T has announced a secure telephone that uses the 
Clipper chip. 

The Clipper chip contains an encryption algorithm called Skipjack, whose 
details are classified. Each chip also contains a unique 80-bit unit key U, 
which is escrowed in two parts at two escrow agencies. Also present is a 
serial number and an 80-bit "family key" F; the latter is common to all 
Clipper chips. The chip is manufactured so that it cannot be reversed 
engineered; this means that the Skipjack algorithm and the keys cannot be read 
off the chip.

When two devices wish to communicate, they first agree on an 80-bit "session 
key" K. The method by which they choose this key is left up to the 
implementer's discretion; a public-key method such as RSA or Diffie-Hellman 
seems a likely choice. The message is encrypted with the key K and sent; note 
that the key K is not escrowed. In addition to the encrypted message, another 
piece of data, called the law-enforcement block, is created and sent. It 
includes the session key K encrypted with the unit key U, then concatenated 
with the serial number of the sender and an authentication string, and then, 
finally, all encrypted with the family key. The receiver decrypts the law-
enforcement block, checks the authentication string, and decrypts the message 
with the key K. 

Now suppose a law-enforcement agency wishes to tap the line. It uses the 
family key to decrypt the law-enforcement block; the agency now knows the 
serial number and has an encrypted version of the session key. It presents an 
authorization warrant to the two escrow agencies along with the serial number. 
The escrow agencies give the two parts of the unit key to the law-enforcement 
agency, which then decrypts to obtain the session key K. Now the agency can 
use K to decrypt the actual message.

It has not yet been decided which organizations will serve as the escrow 
agencies, that is, keep the Clipper chip keys. No law-enforcement agency will 
be an escrow agency, and it is possible that at least one of the escrow 
agencies will be an organization outside the government.

It is essential that the escrow agencies keep the key databases extremely 
secure, since unauthorized access to both escrow databases could allow 
unauthorized eavesdropping on private communications. In fact, the escrow 
agencies are likely to be one of the major targets for anyone trying to 
compromise the Clipper system; the Clipper chip factory is another likely 
target.

The encryption algorithm contained in the Clipper chip is known as Skipjack 
and was designed by the NSA. It uses an 80-bit key to encrypt 64-bit blocks of 
data; the same key is used for the decryption. Skipjack can be used in the 
same modes as DES and may be more secure than DES, since it uses 80-bit keys 
and scrambles the data for 32 steps, or 'rounds'; by contrast, DES uses 56-bit 
keys and scrambles the data for only 16 rounds.

The details of Skipjack are classified, although the government has invited a 
small group of independent cryptographers to examine the algorithm. The 
decision not to make the details of the algorithm publicly available has been 
widely criticized. Many people are suspicious that Skipjack is not secure, 
either due to oversight by its designers, or by the deliberate introduction of 
a secret trapdoor. Another consequence of Skipjack's classified status is that 
it cannot be implemented in software, but only in hardware by government-
authorized chip manufacturers.

Controversy has arisen in many areas: first, there is controversy about the 
whole idea of forced escrow of keys. Those in favor of escrowed keys see it as 
a way to provide secure communications for the public at large while allowing 
law-enforcement agencies to monitor the communications of suspected criminals. 
Those opposed to escrowed keys see it as an unnecessary and ineffective 
intrusion of the government into the private lives of citizens. They argue 
that escrowed keys infringe their rights of privacy and free speech. It will 
take a lot of time and much public discussion for society to reach a consensus 
on what role, if any, escrowed keys should have.

The second area of controversy concerns various objections to the specific 
Clipper proposal, that is, objections to this particular implementation of 
escrowed keys, as opposed to the idea of escrowed keys in general. Common 
objections include: the Skipjack algorithm is not public and may not be 
secure; the key escrow agencies will be vulnerable to attack; there are not 
enough key escrow agencies; the keys on the Clipper chips are not generated in 
a sufficiently secure fashion; there will not be sufficient competition among 
implementers, resulting in expensive and slow chips; software implementations 
are not possible; and the key size is fixed and cannot be increased if 
necessary.

Silvio Micali has recently proposed an alternative system that also attempts 
to balance the privacy concerns of law-abiding citizens with the investigative 
concerns of law-enforcement agencies. Called fair public-key cryptography, it 
is roughly similar to the Clipper chip proposal but users can choose their own 
keys, which they register with the escrow agencies. Also, the system does not 
require secure hardware, and can be implemented completely in software. 

- Paul Fahn




APPLE SHIPS RSA DIGITAL SIGNATURES IN LONG-AWAITED SYSTEM 7 PRO

On October 4th, Apple Computer introduced millions of new users to the RSA 
Digital Signature. The products are called PowerTalk and PowerShare, and they 
are part of System 7 Pro, a revolutionary new version of the Macintosh's 
advanced operating system.

Evolving personal communications needs, coupled with organizational trends, 
have fueled demand for a whole new class of applications, which Apple calls 
collaborative applications, which enable individuals to communicate and work 
together with each other more effectively. To establish the foundation for 
such applications, Apple extended its System 7 operating system with a tightly 
integrated set of capabilities called PowerTalk and PowerShare.

PowerTalk and PowerShare consist of five components, tightly integrated with 
the operating system itself: Messaging, Electronic Mail, Directories, Privacy 
and Authentication, and Digital Signatures. Every user will have access to RSA 
Digital Signature technology for messaging authentication and RSA's lightning 
fast RC4 symmetric stream cipher for server-to-server link encryption. 
Furthermore, every application developer has access to these services as well, 
and third party Mac products using PowerTalk's RSA capabilities are available 
now from Shana Corporation, and many others are coming soon.

PowerTalk is compliant with the Public Key Cryptography Standards (PKCS), 
which Apple helped develop, and users will receive a voucher for a free 
unaffiliated "residential" digital certificate, good for use with any secure 
PKCS or Internet PEM-compliant application (see Certificate Services article, 
next page).

For more information on System 7 Pro or PowerTalk and its RSA security 
implementation, contact Pierre LeClercq at Apple Computer at 408/974-3179.

- Kurt Stammberger




INTERNET PRIVACY ENHANCED MAIL ARRIVES

Several commercial and "freeware" versions of Internet Privacy-Enhanced Mail 
are available right now.  Here are just a few that you can use to start 
sending encrypted, authenticated mail over the Internet.

TechMail
Written at MIT, TechMail provides an easy-to-use electronic mail reading 
program for Macintosh and (soon) Windows platforms. TechMail includes a full 
implementation of the Internet PEM RFC's, using RSA's TIPEM toolkit as its 
security "engine." TechMail is a client of the Internet "Post Office Protocol" 
(or just POP). With POP, E-mail is not directly delivered to a person's PC or 
Macintosh but instead is delivered to a POP server. This is important when 
people wish to turn off (or take home with them!) their systems at the end of 
the day - their mail will be accepted and held at the "Post Office" until they 
request it. Today, TechMail for the Mac (both SLIP and non-SLIP) is available 
on the Internet via anonymous FTP from net.dist.mit.edu (in pub/TechMail). 
Although only the Macintosh versions of TechMail are available today, work is 
progressing on the Microsoft Windows version which should be available 
shortly.

TIS/PEM and T-Mail
TIS/PEM is a non-commercial freeware implementation of Internet PEM that was 
developed by Trusted Information Systems under contract with ARPA and 
agreement with RSADSI, and is available in source code for academic research 
or exploratory use by corporations and individuals on the Internet. TIS/PEM 
was designed by TIS to be easily integrated into any UNIX-based E-mail message 
handling package. Currently, TIS/PEM operates on a majority of the UNIX 
systems used on the Internet, and has also been integrated with the widely 
used Rand MH Mail User Agent software, which is fully compatible with SMTP-
based MTA's (such as Sendmail and MMDF). T-Mail, or "Trusted Mail" is TIS's 
commercial, supported version of the TIS/PEM product, and is available on 
multiple platforms. For more information on T-Mail or TIS/PEM, please send 
requests via E-mail to tispem-support@tis.com, or call Frederick Avolio at TIS 
at (301) 854-6889.

TIPEM 1.1
TIPEM version 1.1 is the latest release of RSA's Toolkit for Interoperable 
Privacy-Enhanced Messaging. The upgrade includes several new modules which 
allow developers to create applications that comply to the Internet Privacy-
Enhanced Mail (PEM) standards, as well as the commercial Public Key 
Cryptography Standards (PKCS) established by vendors including Lotus, Apple, 
Novell and Microsoft. The toolkit, which has been used for major 
communications security development projects such as Apple's PowerTalk, allows 
software developers to easily add RSA public key encryption and authentication 
features to any mail, mail-enabled or messaging-based application. TIPEM is 
available direct from RSA Data Security, Inc. 

RIPEM
RIPEM is another "freeware" public key encryption program designed for 
Internet PEM. RIPEM version 1.1 implements a subset of Internet Privacy-
Enhanced Mail (PEM), as described in Internet RFC's 1421-1424.  RIPEM 
implements a number of mechanisms to manage public keys. RIPEM can obtain 
public keys from user-managed files, from Internet key servers, and via the 
Internet "finger" protocol. The Internet host ripem.msu.edu acts as a RIPEM 
key server for users who choose to register their keys. RIPEM is for the 
Macintosh, MS-DOS, Windows NT, OS/2, and all major versions of UNIX. RIPEM is 
available via anonymous FTP to rsa.com, and via non-anonymous FTP to 
ripem.msu.edu.




RSA CERTIFICATE SERVICES CENTER OPENS FOR BUSINESS

Last month, the RSA Certificate Services Center (CSC) officially opened for 
business. Right now, today, you can obtain real certificates with your name, 
public key, and organizational affiliation safely embedded in a 
cryptographically tamper-proof digital document. These RSA digital 
certificates are your "digital I.D.", needed for use with Apple PowerTalk, 
Internet Privacy-Enhanced Mail, or any X.509 certificate-based secured 
application. The Certificate Services Center is designed to provide one-stop 
shopping for everyone's needs, whether you just need one certificate for 
yourself Ð or the ability to issue millions for your employees.

Getting a Certificate 
There are two primary types of certificates that are supported by the RSA 
Certificate Services Center: affiliated and unaffiliated. The first type of 
certificate has an organizational affiliation; e.g., "John Doe, Engineering, 
Apple Computer, Inc." The second type of certificate has none: just "John 
Doe". Of course, any given person may have multiple certificates.

There are three ways to get a certificate:
1. You can issue your own affiliated certificates, using RSA's Certificate 
Issuing System (CIS). When you purchase RSA's Certificate Issuing System 
(CIS), you establish your company or organization as a Certification 
Authority. You can issue your own certificates for your employees and 
affiliates in the RSA Commercial Hierarchy.

2. The CSC can issue affiliated certificates for you, using a CIS housed at 
the Certificate Services Center ("Co-Issuer Relationship"). Alternately, your 
company or organization can "rent space" on a CIS housed at RSA's Certificate 
Services Center. Your organization's RSA private keys are stored inside the 
CIS and managed by CSC personnel. CSC personnel process requests from your 
organization and issue digital certificates on your behalf.

3. You can purchase individual unaffiliated certificates directly from the 
CSC. You can generate a request form for a certificate, known as a 
Certificate-Signing Request using RSA-licensee packages like Apple's PowerTalk 
or RSA's own TIPEM developer's toolkit. Once that form is notarized, you send 
it to the CSC for fulfillment, and the CSC sends back your certificate on 
diskette or via E-mail.

Revoking a Certificate
Just like a credit card, occasionally a certificate needs to be "hot listed" 
or revoked. This situation may arise if the integrity of the certificate is 
jeopardized in any way, for example:
o	the owner's RSA Private Key is stolen or compromised;
o	the certificate owner changes her name (gets married);
o	the owner of an affiliated certificate loses affiliation (i.e. graduates 
from a University or is fired from a job)

The CSC manages and disseminates Certificate Revocation Lists (CRLs) for the 
entire hierarchy, and revokes certificates on the behalf of its Co-issuer and 
Unaffiliated customers.

Verifying a Certificate
There will be occasions when you want an up-to-the-second check on the 
validity status of a certificate. The RSA Certificate Services Center offers 
several different ways to accomplish this:

Telephone Ð the CSC maintains an automated voice response unit that gives the 
current status of any certificate in the entire Hierarchy, simply by keying in 
the certificate and issuer serial numbers on your touch-tone phone. 
Internet Ð the CSC maintains an automated certificate status E-mail responder.
Modem Ð you can dial directly into the CSC host and gain certificate status 
information from the RSA Commercial Hierarchy BBS.

For more information contact George Parsons, CSC Manager, at 415/595-8782. 




RSA ENTERS WIRELESS ARENA IN NEW CDPD STANDARDS

A group of major cellular carriers recently announced release 1.0 of the 
Cellular Digital Packet Data specification, an open standard designed to 
enable customers to send computer data over existing cellular networks. The 
release of the specification is a milestone for the communications and 
computer industries, enabling the introduction of a variety of new products 
and applications to serve business and consumer users who need access to 
information anytime, anywhere. 

But what makes the CDPD standards particularly significant is that they are 
the first cellular specifications to include built-in encryption and 
authentication, using two technologies in the BSAFE toolkit from RSA Data 
Security, Inc.: the Diffie-Hellman Key Agreement public key algorithm and the 
RC4 Symmetric Stream Cipher. The specification will aid applications such as 
secure wireless electronic mail messages, database queries or credit card 
authorization.

Network manufacturers with CDPD projects under development include AT&T 
Network Systems, Motorola, Hughes Network Systems, Cascade Communications 
Corporation and Steinbrecher, Inc. Software companies such as EDS, Alcatel 
TITN, Retix and Cellular Data, Inc. are already developing platforms that will 
drive the CDPD engine. A number of hardware companies have also announced 
plans to introduce CDPD-based products, including Apple, IBM, Eo and 
Cincinnati Microwave, Inc. Virtually the entire cellular carrier industry is 
behind the CDPD effort, with funding provided by carriers such as McCaw, 
NYNEX, PacTel, Ameritech and many others.

The CDPD 1.0 specification provides network and customer equipment 
manufacturers the parameters for building to this nationwide approach that 
sends packets of data in previously "wasted" or unused bandwidths, such as in 
the pauses between words in a cellular telephone conversation. The spec 
includes details of the CDPD architecture, airlink, external network 
interfaces, network support services, network applications services, network 
management, radio resource management, radio media access control and, of 
course, encryption and authentication. Those interested in obtaining a copy of 
the CDPD specification can contact Tom Solazzo, CDPD Project Coordinator at 
714/545-9400 ext. 235.

RSA is offering low-cost, standardized BSAFE licensing terms for all CDPD 
implementors. Contact Paul Gordon at RSA at 415/595-8782 for more information.




ARKHON TECHNOLOGIES BUILDING RSA-EXTENDED KERBEROS NETWORK SECURITY SYSTEM

Arkhon Technologies. Inc., located in Cerritos, California, has recently 
joined the RSA family. Arkhon's new enterprise management product requires the 
distribution and maintenance of private keys throughout a large network, which 
is divided into a number of Kerberos V domains, and incorporates multiple 
vendors and protocols. The Arkhon solution to these security requirements, 
which is being built with RSA's TIPEM toolkit, provides secure key management 
for any number of distributed Kerberos V servers supporting both logical and 
physical domains.

There are three distinct levels of enterprise management in Arkhon's product:

l.	the management of the physical network and the distributed 
communications environment itself;
2.	the remote administration and automation of the control functions for 
distributed nodes of the network;
3.	the remote administration and automation of the control functions for 
sub-systems and application software running on the distributed 
platforms.

Arkhon has joined together with the pre-eminent system software vendors in the 
industry, including companies such as RSA, Oracle and OCSG. Sometimes called a 
"virtual corporation", such partnerships allow a group of specialized 
companies to combine their expertise synergistically to create products with 
complex functionality in a more timely fashion than traditional software 
producers.

Arkhon's architecture allows the modular incorporation of any required system 
or application software, providing to the user a single programming interface 
and a consistent look and feel. Additionally, Arkhon offers consolidated 
support, training, on-line documentation, and tutorial software for its full 
product line. Arkhon and its partners constitute the only virtual corporation 
with complex solutions to the problems of enterprise management. Contact 
Arkhon at 310/809-0760.

- Stan Tomsic, Arkhon Technologies




RSA LICENSEE UPDATE

You can find RSA technology in more products from more vendors than ever 
before! Here is a partial list of products available now or coming soon:

Security in the OS
o	Novell NetWare 4.0
o	Apple System 7 Pro PowerTalk (AOCE)
o	Microsoft Windows NT 

Secure E-mail
o	Enterprise Solutions X.400 Mail 
o	Trusted Information Systems T-Mail
o	Datamedia SecurExchange

Secure Telephone & Fax
o	Motorola Commercial STU's
o	AT&T 3600, 4100
o	Secure Communications, Inc. (ICTI)

Secure Workgroup 
o	Lotus Notes
o	Microsoft Windows for Workgroups

Secure Electronic Forms
o	WordPerfect InForms
o	Delrina PerForm PRO
o	BLOC F3 Forms Automation

Link and Node Encryption
o	Semaphore Communications NEU's
o	Racal Datacom Datacryptors
o	Cylink Link Encryptors
o	Newbridge Networks TAP System
o	IBM 4755 and 4753
o	Northern Telecom X.25 PDSO

Secure Remote Access
o	Hilgraeve HyperACCESS/5
o	ANS CO+RE InterLock
o	Hughes NetLock TCP/IP
o	Fischer International RSA/3270




HILGRAEVE LICENSES RSA FOR BEST-SELLING ASYNCH PACKAGE

Hilgraeve, Inc. is about to release the very first mass-market asynchronous 
communications package with RSA encryption capabilities built right in. And 
the current release of that software, HyperACCESS/5, is already a market 
leader.

HyperACCESS/5 is Hilgraeve's top-of-the-line communications software for DOS, 
OS/2 and Windows. It is Hilgraeve's flagship product, providing asynchronous 
communications and remote workstation control via modem, ISDN telephone 
deskset, networked or RS232 connections. HyperACCESS/5 has received PC 
Magazine's Editors' Choice Award three out of the last five years for its 
quality, performance and ease of use.

Now, using RSA's BSAFE cryptographer's toolkit, point-to-point encryption will 
be integrated as a standard feature in future versions of the HyperACCESS/5 
product.

Founded in 1987, Hilgraeve is a privately-held company, a pioneer developer 
and patent holder in the field of high performance communications software.

For more information on HyperACCESS/5, contact Matt Gray at Hilgraeve at 
313/243-0576.




RSA LICENSEE SPOTLIGHT: DATAMEDIA'S SECUREXCHANGE

Datamedia Corporation, based in Nashua, New Hampshire, joined the RSA family 
last May with the goal of creating a piece of software that could be used to 
bring RSA's state-of-the-art security and authentication features to any E-
mail system. They have since achieved that goal: the product is called 
SECURExchange, and it can be used to secure virtually any existing DOS, 
Windows or Macintosh E-mail system.

In analyzing the market potential for this new product, Datamedia realized 
that while electronic mail networks have become critical parts of the 
communication infrastructure in most organizations, most commercial E-mail 
systems have little or no capability to protect sensitive information 
transmitted over networks. And the E-mail packages that do claim "encryption" 
features typically use unproven, cryptographically weak homegrown scrambling 
schemes.

In its market survey, Datamedia discovered that many organizations that were 
aware of the risks inherent in unsecured E-mail transmission of sensitive 
documents placed tight restrictions on what could and could not be sent via E-
mail, thereby devaluing the company's substantial investment in the 
technology, and forcing the organization back to expensive, inefficient 
transport mechanisms, such as next day air or sealed interoffice mail for 
sensitive documents.

Datamedia is helping companies gain back the E-mail advantages of speed, 
convenience and cost savings for any document. Datamedia's product is designed 
to help organizations realize the full potential of their E-mail investment, 
by allowing transmission of even the most confidential or tamper-sensitive 
information over existing unsecured E-mail systems.

SECURExhange is an add-in software application that upgrades your existing E-
mail infrastructure with privacy, authentication and positive identification 
features. To accomplish this, SECURExchange uses:

RSA Digital Envelopes 
Files transmitted using SECURExchange can be placed in a secured electronic 
"envelope" that can only be opened by the addressee. The envelope consists of 
one or more files which are encrypted using the RSA Public Key Cryptosystem 
and DES.

RSA Digital Signatures
Files digitally signed by SECURExchange cannot be tampered with without the 
recipient's knowledge, and the recipient can furthermore be absolutely assured 
of the identity of the signer in any given message.

RSA Digital Certificates 
SECURExchange uses industry standard X.509/PKCS Digital Certificates to prove 
identity and RSA Public Key ownership over a network. Certificates, combined 
with SECURExchange's compliance to the Public Key Cryptography Standards 
(PKCS) mean that users can securely communicate worldwide with users of a 
growing family of secured applications, including Internet Privacy-Enhanced 
Mail, Apple PowerTalk and BLOC F3 Forms Automation.

SECURExchange has been fully tested with many existing electronic mail 
systems, including cc:Mail, Microsoft Mail, DaVinci Mail, Beyond Mail, 
Internet, Compuserve, MCI Mail, AT&T EasyLink and many, many more. For more 
information on SECURExchange, call Datamedia at 603/886-1570.




DR. RON RIVEST ON THE DIFFICULTY OF FACTORING

(Since the difficulty of "cracking" the RSA algorithm has long been believed 
to be roughly equivalent to the difficulty of factoring a given RSA modulus, 
we have decided to reprint one of Ron Rivest's classic papers on the 
difficulty of the factoring problem.  -Ed.)

Abstract
Here are the results of some simple estimations I have done on the projected 
difficulty of factoring various sizes of numbers for the next 25 years.

The basic question is:

"In the year YYYY, what size number will I be able to factor for an investment 
of $DDDD?"

To be specific, I've looked at

YYYY= 1990, 1995, 2000, 2005, 2010, 2015
and
$DDDD = $25K, $25M, and $25G

(that is, $25,000, $25,000,000, and $25,000,000,000). The three levels might 
correspond to "individual", "corporate", and "national" levels of attack. All 
calculations are done in 1990 dollars.

Each of these estimates is also done in an "high," "average," and "low" point 
of view. (That is, the high estimates are for the greatest number of digits 
possible, while the low estimates are for the least number possible.)

The estimates are done in terms of MIP-years, a computational unit of power 
analogous to a "kilowatt-hour" of electricity. Specifically, a MIP-year is the 
computational power of a one-MIP machine running for one year. A MIP (more 
correctly, a MIPS) is a "million-instruction per second" machine. Today's 
workstations run in the 1 to 10 MIPS range, and 100 MIPS machines are under 
development. One MIP-year corresponds to 3.15x1013 operations.

Factoring algorithms
To factor a number n with current technology using the best known algorithms, 
we need a number of operations roughly equal to

L(n) = exp (_ ln n ln ln n)	(1)

(Using, say, the quadratic sieve algorithm.) We use this formula for our "low" 
estimates, since this is currently achievable. For our "average" estimate, we 
use the formula

A(n) = min (L(n), exp (2.08 (ln n)l/3 (ln ln n)2/3))	(2)

This presupposes that the number field sieve (NFS) can be generalized to 
handle ordinary (cryptographic) numbers, as conjectured in the 1990 ACM STOC 
article. Finally, for the high estimates, we use the formula

H(n) = exp (1.526 (ln n)l/3 (ln ln n)2/3)	(3)

which is the number of operations that NFS now uses for rarefied numbers. 
(Achieving this formula would be quite a breakthrough.)

Costs of computation
I estimate that today a MIP-year costs about $10, as follows. You can buy 
(parts for) a 10-MIP machine for about $500. With a lifetime of five years, 
you get 50 MIP-years out of the machine.

As for rates of technological progress, for the "low" estimate I assume that 
technology only advances at 20%/year. For the "average" estimate I assume that 
technology advances at 33%/year, and for the "high" estimate I assume 
45%/year. These are measured in terms of the drop in the cost of a MIP-year in 
constant 1990 dollars. Thus, under the high estimate, $10 will buy 1.45 MIP-
years in 1991 and 2.10 MIP-years in 1992, etc.

At this rate, we can estimate the number of MIP-years that can be bought for 
$1 as follows:

Year	Low	Average	High
1990	0.100	0.100	0.100
1995	0.249	0.416	0.641
2000	0.619	1.732	4.109
2005	1.540	7.207	26.340
2010	3.833	30.000	168.800
2015	9,540	124.800	1082.000
2020	23.74	519.500	6935.000

Combining this with our "low" ($25K), "average" ($25M), and "high" ($25G) 
estimates for dollars available, we arrive at the following chart for the 
number of MIP-years affordable. (Here T is the abbreviation for "tera," i.e. 
1012.)

Year	Low	Average	High
1990	2.5K	2.5M	2.5G
1995	6K	10M	16G
2000	15K	43M	103G
2005	38K	180M	658G
2010	96K	750M	4.2T
2015	239K	3.1G	27T
2020	549K	13G	173T

That is, in the year 2020, a determined opponent with $25G might be able to 
afford 173 tera MIP-years to attack a number.

Results
We now give the number of operations required to factor numbers of various 
sizes under our low, average, and high estimates (formulas (1), (2), and (3)). 
These are given in MIP-years.

Digits	Low	Average	High
100	74	74	0.1
150	1M	1M	38
200	4G	4G	4K
250	6T	2T	261K
300	5 x 1015	3 x 1014	10M
350	2 x 1018	2 x 1016	252M
400	9 x 1020	1018	5G
450	2 x 1023	6 x 1019	81G
500	4 x 1025	2 x 1021	1T

Combining the above charts with some additional calculation, we end up with 
our low, average, and high estimates for the size of a number (in digits) that 
an attacker would be able to factor at various points in time.

Year	Low	Average	High
1990	117	155	388
1995	122	163	421
2000	127	172	455
2005	132	181	490
2010	137	190	528
2015	142	199	567
2020	147	204	607

Conclusions
If one wishes to devise a "standard" based on a 25-year lifetime for an 
average attack, then a recommendation of 200 decimal digits (665 bits) seems 
justified. A "super-master" key over the same lifetime might well be chosen to 
be three times that length (600 decimal digits, or 1994 bits).

- Dr. Ron Rivest




RSA FACTORING CHALLENGE UPDATE

The RSA Factoring Challenge, sponsored by RSA, is essentially a list of very 
long numbers posted on the RSA host on the Internet (rsa.com). The Challenge 
serves two purposes: it provides a testing platform for new factoring 
algorithms, and it also provides data which RSA (and others) use to measure 
the advance of factoring technology. RSA then turns around and uses these data 
to recommend key sizes for various customer projects, based on the customer's 
security needs.

The numbers in the factoring challenge are of two types; so-called partition 
numbers, which can act as a good general assessment of factoring algorithms, 
and RSA challenge numbers which are numbers of the type that would typically 
be used as RSA moduli, because they are assumed to be particularly difficult 
to factor.

There are cash prizes for the most successful factorers, although the rules by 
which the money is distributed ensure that factoring a smaller partition 
number that has remained unfactored for a relatively long time is rewarded 
more than the factoring of a larger partition number. Factoring any RSA 
challenge number is a considerable achievement in itself, and is rewarded 
accordingly. Prizes vary anywhere from the tens to the thousands of dollars, 
and unrewarded prize money rolls over in a "kitty" from month to month, much 
like a State Lottery.

Since its inception in March 1991, over a thousand partition numbers have been 
factored, providing a complex picture of the success of different algorithms 
for numbers of varying sizes. By contrast, only three RSA challenge numbers, 
of lengths 100, 110 and 120 decimal digits have been factored. "RSA-110," 
consisting of 110 decimal digits, required an estimated 75 mips-years of 
computer time, while "RSA-120," which was successfully factored only last 
June, consumed over 800 mips-years of computation.

From these data it is clear that even a small increase in the length of 
typical RSA moduli requires the use of considerable additional computing 
effort. A typical RSA modulus (some 512 bits long, consisting of 155 decimal 
digits) can be expected to lie well out of reach of current techniques for the 
foreseeable future.

Information and rules for the factoring challenge can be obtained by E-mail 
from challenge@rsa.com. A thorough review of the data accumulated over the 
past two years has recently been completed, and will soon be available as an 
RSA Laboratories technical report.

- Dr. Matthew Robshaw




RSA LABORATORIES REPORT

Over recent months, RSA Laboratories has become increasingly busy. As well as 
the customary work of technical support and independent consulting, we 
continue to maintain our close awareness of recent work in the cryptographic 
community, particularly new results from recent IACR meetings such as 
Eurocrypt '93. We are releasing an increasing number of RSA Laboratories 
technical reports and we anticipate the imminent publication of the newly 
updated version of  "Frequently Asked Questions". 

New projects have included an analysis of the vast quantity of data received 
as a result of the RSA Factoring Challenge. The challenge was established over 
two years ago with the aim of  assessing the limits in factoring ability. A 
full analysis of this data is now being concluded and the full report will be 
available soon.

A particularly exciting development has recently become a major research 
priority at the Labs. Research at RSA Laboratories has revealed a 
cryptographic technology that could provide a solution to some of the more 
pressing problems associated with the distribution of data by CD-ROM. Patent 
applications have been filed, and the project code-named "Arcade".

Recently we were pleased to host our first annual RSA Laboratories Seminar 
Series. Diverse sessions provided not only a full review of many of today's 
issues, but also news and assessment of the very latest advances within the 
cryptographic community. We are pleased to report that there was considerable 
interest in this new venture, with scientists and developers from many of our 
major licensees attending. Currently, of course, we are quite busy planning 
technical sessions for January's upcoming 1994 RSA Data Security Conference Ð 
we hope to see you there!

- Dr. Matthew Robshaw




PUBLIC KEY CRYPTOGRAPHY STANDARDS UPDATE

RSA Laboratories just sent out for comments the first set of revisions to the 
Public-Key Cryptography Standards. Major improvements include the following:

o	PKCS #7, the cryptographic message standard, now supports certificate-
revocation lists (CRLs), "certificates-only" messages, and messages 
encrypted with only secret-key algorithms

o	PKCS #10, a new standard for certification requests, is added. The 
standard gives compact formats for requesting key certification services 
such as those offered by RSA Data Security and other certification 
authorities.

Editorial improvements include updates to the references and the addition of a 
revision history. PKCS #1 now gives a comparison of MD2, MD4, MD5; the 
overview addresses compatibility between PKCS and new work, including NIST's 
proposed Digital Signature Standard, ISO/IEC 9796, and ANSI X9.30 and .31; and 
the examples reflect new naming conventions.

The proposed revisions, pending approval by the PKCS participants, should be 
released in September. Suggestions for further improvements are welcome.

Since its publication in June 1991, PKCS has become a part of several 
standards and products, including Privacy-Enhanced Mail, the NIST/OSI 
Implementors' Workshop, BLOC F3 Forms Automation, Apple's PowerTalk, Shana 
Informed, Fischer International's Workflow 2000, and RSA's TIPEM and BSAFE. 
More is just around the corner.

- Dr. Burton S. Kaliski




THE CLIPPER CHIP: ONE SCIENTIST'S PERSPECTIVE

Dr. Martin Hellman is one of the co-inventors of Public Key technology, a 
Distinguished Associate of RSA Laboratories, and is currently a professor of 
Electrical Engineering at Stanford University. -Ed.

The CLIPPER and CAPSTONE initiatives have hit the crypto community like an 
asteroid impacting Earth. Some dinosaurs are likely to become extinct (DES and 
the lack of a public key standard). But the impact is so great that 
cryptographic evolution itself might seem threatened: What good is 
cryptography if someone else can access your key without your knowledge or 
permission? Here I offer some thoughts on how to maximize the probability of 
evolution continuing, and perhaps even benefiting from this unexpected impact. 
(The first I heard of it was in the New York Times!)

Looking back to my fight with NIST and NSA over DES in the 1975-80 time frame, 
I see that fighting them did not work very well. I got a lot of good press, 
but not one additional bit of key size (my main goal). NSA has immense power 
to determine what gets manufactured and what does not. As evidence that DES 
was not an anomaly, AT&T has already decided to shift its 3600 encrypted 
telephone from DES to CLIPPER. This time, I would like to get more of what I 
want on the technical side, even though compromise does not make as many 
headlines.

Based on my experience with DES, the algorithm and key size are probably 
frozen in concrete, but the administrative procedures governing key escrow, 
and possibly even the secrecy of the SKIPJACK encryption algorithm used by 
both CLIPPER and CAPSTONE, might still be influenced. Thus, while I would like 
to see the key size increased from 80 bits (why limit it if keys are 
escrowed?), and I would prefer triply-encrypted DES to SKIPJACK, that is not 
where I am putting my main effort. Rather, my main hope is on the following 
three administrative changes.

1.	More than one court order should be required for a key to be divulged. 
	While most judges will not succumb to governmental hysteria over 
"communist threats" or whatever replaces them, some will think like 
Richard Nixon, John Mitchell, or J. Edgar Hoover. If multiple court 
orders would slow the process down too much, an after-the-fact GAO-type 
audit might suffice, with overly zealous judges removed from future 
decisions.

2.	If even one of the judges involved in the process believes that the 
wiretap request is an illegal abuse of power, as in Watergate or J. 
Edgar Hoover' s excesses, penalties should be levied on the requesting 
of official. At a minimum, the intended target of the wiretap should be 
officially notified, and I would prefer the official be barred from 
making any future requests.

3.	I would like government officials, from the President on down, to be 
subject to the same key escrow requirements as the rest of us. This 
would help insure the safety of the escrow system (they would have a 
major incentive to make sure it was working!), and would help prevent 
illegal activities on the part of the government- everything from Iran-
Contra-type abuses through illegal wiretapping.

Interested readers can obtain the full text of my comments to NIST, on which 
this article is based, by anonymous ftp over Internet on isl.stanford.edu in 
the file /pubs/hellman/nist clipper.txt.

- Dr. Martin Hellman




SMARTDISK - THE SMARTCARD THAT NEEDS NO READER

How would you like to get your hands on a single pocket-sized device that 
could: identify users to the system, store their passwords and crypto-keys and 
protect access to PCs and data? What if that device plugged straight into the 
front of most computers without the need for any additional hardware 
connector, cables or readers? And suppose that it could also provide a trusted 
time source and generate random numbers Ð would you want one? Well, now you 
can.

It is a SmartDisk; it is shaped like a regular 3.5" floppy and fits into a 
standard disk-drive but it contains no magnetic media. The SmartDisk is a 
solid state electronic device containing a microprocessor, memory, real-time 
clock and special magnetic interface circuitry that allows it to interface 
directly with floppy disk-drive heads. It has its own embedded operating 
system firmware Ð SDOS Ð which provides all the functions necessary to support 
a wide range of computer and data security applications.

The SmartDisk is effectively a high performance smartcard which doesn't need a 
reader. However, in addition to the normal smartcard functions such as 
password verification and secure data storage, the SmartDisk can also provide 
hardware "boot protection" for PC access control applications. This is 
achieved by a unique function within SDOS which, on insertion of the SmartDisk 
into a disk drive, will output special bootstrap software for direct execution 
in the PC at power-up (or re-boot) before the PC disk operating system (DOS) 
is loaded. This special bootstrap is fully programmable by the SmartDisk 
systems integrator and can be used to gain complete control over the PC 
environment without the need to install special hardware on the PC's internal 
bus.

The first application available for the SmartDisk is SafeBoot, a complete PC 
access control package which is virtually unhackable. Unlike most software-
only security systems, SafeBoot stores its encryption algorithm and key on the 
SmartDisk rather than on the PC's hard disk, where they can be relatively 
easily found using low level software tools such as Norton Utilities.

Various other applications  are currently under construction by SmartDiskette 
Security Corporation (supplier of the SmartDisk) and third party vendors. A 
full range of "SmartDisk Application Integration Tools" is also available 
including a 'C' language dynamic linkable library (DLL) for Windows 
applications. For further information contact Gene Wagner or Jon Kaplan at 
Fischer International at 813/643-1500.

- Paul Barrett, SmartDiskette




UPCOMING RSA TRADESHOW APPEARANCES

National Computer Security Expo
Anaheim Hilton & Towers
November 8 Ð 9, 1993

1994 RSA Data Security Conference 
Hotel Sofitel, Redwood Shores, CA
January 12 Ð 14, 1994

Networks Expo
John B. Hynes Veterans Memorial Convention Center, Boston
February 15 Ð 17, 1994

Electronic Mail Association
Anaheim Hilton & Towers
April 18 Ð 21, 1994

Networld/Interop Spring
Las Vegas Convention Center
May 4 Ð 6, 1994

Networld/Interop Fall
Atlanta, Georgia World Congress Center
September 12 Ð 14, 1994




REGISTER NOW FOR THIRD ANNUAL RSA DATA SECURITY CONFERENCE

What's happening?
RSA Data Security is pleased to announce our third annual Data Security 
Conference, to be held at the Hotel Sofitel in Redwood Shores, California. The 
conference is set for Wednesday through Friday, January 12-14 1994.

Who should attend?
Cryptographers, software developers, product line managers, security analysts, 
product marketing professionals, mathematicians, secure product buyers, 
consultants... anyone that has an interest in cryptography and the products 
that use it.

What will be covered?
You'll see presentations and products from RSA's major licensees, including 
Apple, Microsoft, Novell, Lotus and many others... Panel discussions from 
experts from government and industry... Tutorials going all the way from the 
basics to the cutting edge of crypto theory and application. A detailed 
conference & tutorial schedule will be available November 1st. 

How do I register?
Fill out the registration form and fax it back to RSA. Space is extremely 
limited: we can only admit the first 400 people that register, so sign up now! 
There will be no registration at the door. $245 admits you to the conference 
and all tutorials and includes the full hardcopy conference proceedings, a 
cocktail reception, and breakfast and lunch all three days.

Conference Dates:
January 12-14, 1994.

Registration Deadline:
Friday, December 17, 1993.
No onsite registration.

Tutorial Selection Deadline:
Friday, December 17, 1993.

Registration Fee: $245 per person
(CA residents add applicable sales tax)

Registration fee includes breakfast and lunch all three days, admission to the 
conference and all tutorials, a hardcopy of the full conference proceedings, 
cocktail reception, and conference souvenir. Tutorial selection forms will be 
sent to conference registrees starting November 1st. Cancellations are subject 
to a $50 administrative fee.

Travel Information
Hotel Sofitel 
Guaranteed rate $103 per night
(415) 598-9000
The Hotel Sofitel offers a complimentary airport shuttle.


