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Many elements of cryptography go by different names. There s symmetric-key crypto, which is also known as secret-key crypto. Asymmetric-key crypto also goes by the name of public-key crypto, and the terms message digest and hash (see 5) are often interchangeable. Now we come to an area of crypto-key recovery and key escrow in which two terms appear to describe the same thing but are actually significantly different. Key recovery and key escrow are not the same thing. Key recovery is a method that s implemented to restore keys that get lost. Key escrow is the practice of giving keys to a third party so that the third party can read sensitive material on demand. Key escrow is almost always used to describe a way for governments to obtain keys in order to collect evidence for investigations. Consider the analogy of your house key. With key recovery, if you lose your key, you hire a locksmith to create a new one. With key escrow, the day you buy the house, you surrender a copy of the key to the police so that they can enter your house when they want to, possibly without your knowledge. This book is not concerned with the political or practical implications of key escrow. It is our intention only to point out the difference between the two terms. The actual techniques used to implement key recovery and proposed key escrow plans are often the same. So for the rest of this chapter, we describe key recovery schemes.

Thus, ending inventory under the LIFO method would be valued at $2,430. The cost of good sold is determined by subtracting the value of the ending inventory from the total value of the inventory available for sale ($6,100 $2,430 = $3,670). A disadvantage of the LIFO method is that it does not represent the actual physical movement of goods in the business, as most businesses do not move out their most recent purchases. Yet rms favor this method because it does match the most recent costs against current revenue,

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The advantage of this system is that recovering the key is easy. The disadvantage is that Michelle has access to all the keys. It is possible for her to recover keys without anyone s knowledge. Another disadvantage is that Pao-Chi must depend on Michelle. What does he do when she is away on vacation What does the company do if she leaves for another job In that case, the company will have to get a new TTP, generate a new key recovery key pair, distribute the new public key, and have everyone create new digital envelopes with all their keys.

4

Some companies and individuals do not like the idea of one person having access to all keys In such situations, a better scheme is to break the key into parts and distribute them among several individuals Suppose those individuals are the company s TTPs Michelle and Alexander and Gwen, the VP of sales Now Pao-Chi s software comes preloaded with three public keys Each of his keys is broken into three parts, and three digital envelopes are created For example, Pao-Chi has a 128-bit symmetric key that he uses to encrypt the files on his hard drive; this key is separated into three blocks of five bytes, five bytes, and six bytes Michelle s public key protects five of the bytes, Alexander s protects another five, and Gwen s protects the last six Now if Pao-Chi needs to recover his key, all three trustees must gather to reconstruct the data.

The TQM approach has four characteristics:

The advantage here is that no one individual can recover keys secretly For keys to be recovered surreptitiously, all three trustees would have to agree to subvert the system, a scenario less likely to occur than if only one individual possessed the ability to recover keys The scheme as described here has a problem Because each trustee has a portion of the key, it would be possible for an individual to recover the known portion and then perform a brute force attack on the rest Gwen has the largest portion six bytes (48 bits) so her task would be equivalent to breaking an 80-bit key Such an attack is not likely, but it would be better if that avenue were closed One way around this problem is to create a 384-bit value and split that into three 128-bit components.

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