There are two different topics mixed up here.

1. Link-level security (secure connection to the node we intended to connect 
to).

2. Node-level security (aka; don't connect to a 'evil node').

The fist requires link-level encryption and authentication.

The second requires identity authentication.

You described the 'evil node' attack; that indeed needs an identity system to 
stop. However BIP151 doesn't intend to protect against connecting to evil 
Bitcoin Nodes.

It is important not to mixup link-level authentication and node-level 
authentication.

When your client picks random nodes to connect to, you are not considered whom 
in particular runs them. (Rather that you have a good random sample of the 
network).

If you manually add a friends node; at this point you wish to have node-level 
authentication.  However, this may (and probably should) happen out-of-band.


Sent from my iPhone

> On 29 Jun 2016, at 01:07, Eric Voskuil <e...@voskuil.org> wrote:
> 
> Hi Cameron, good to hear from you!
> 
>> On Jun 28, 2016, at 11:40 PM, Cameron Garnham <da2...@gmail.com> wrote:
>> 
>> Unauthenticated link level encryption is wonderful! MITM attacks are 
>> overrated; as they require an active attacker.
> 
> This is not really the case with Bitcoin. A MITM attack does not require that 
> the attacker find a way to inject traffic into the communication between 
> nodes. Peers will connect to the attacker directly, or accept connections 
> directly from it. Such attacks can be easier than even passive attacks.
> 
>> Stopping passive attacks is the low hanging fruit. This should be taken 
>> first.
>> 
>> Automated and secure peer authentication in a mesh network is a huge topic. 
>> One of the unsolved problems in computer science.
>> 
>> A simple 'who is that' by asking for the fingerprint of your peers from your 
>> other peers is a very simple way to get 'some' authentication.  Semi-trusted 
>> index nodes also is a low hanging fruit for authentication.
> 
> It is the implication of widespread authentication that is at issue. Clearly 
> there are ways to implement it using a secure side channels.
> 
>> However, let's first get unauthenticated encryption. Force the attackers to 
>> use active attacks. (That are thousands times more costly to couduct).
>> 
>> Sent from my iPhone
>> 
>>> On 29 Jun 2016, at 00:36, Gregory Maxwell via bitcoin-dev 
>>> <bitcoin-dev@lists.linuxfoundation.org> wrote:
>>> 
>>> On Tue, Jun 28, 2016 at 9:22 PM, Eric Voskuil via bitcoin-dev
>>> <bitcoin-dev@lists.linuxfoundation.org> wrote:
>>>> An "out of band key check" is not part of BIP151.
>>> 
>>> It has a session ID for this purpose.
>>> 
>>>> It requires a secure channel and is authentication. So BIP151 doesn't 
>>>> provide the tools to detect an attack, that requires authentication. A 
>>>> general requirement for authentication is the issue I have raised.
>>> 
>>> One might wonder how you ever use a Bitcoin address, or even why we
>>> might guess these emails from "you" aren't actually coming from the
>>> NSA.
>>> _______________________________________________
>>> bitcoin-dev mailing list
>>> bitcoin-dev@lists.linuxfoundation.org
>>> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
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