WILL THIS BE THE YEAR OF PUBLIC KEY SECURITY? 
PAST AND PRESENT JOIN TO SUGGEST WHAT'S NEXT 

YOU CAN'T THROW a rock nowadays without hitting some
pundit who has his or her own practiced rant about the
necessity of security in sustaining the bull run of
e-commerce. Oftentimes, that rock also hits outspoken
members of the security community who have their own
visions on how to build a universal paradigm for
network security. 

At least we agree on the components: The elegant 
simplicity of public key cryptography will form the 
core mechanism for delivering confidentiality, 
authentication, integrity, and nonrepudiation, 
whatever the outcome of this high-stakes sweepstakes. 
Now that much of the legal hassle that helped inhibit 
widespread adoption of public key technologies has 
largely evaporated, will the best model for using 
public key crypto finally emerge? In this column, we 
examine commentary from the past and present in an 
effort to predict the future of secure e-commerce. 

Back in the distant past (circa 1997), Bradford Biddle 
published 10 questions about the necessity and nature 
of impending PKI (public key infrastructure) 
legislation (see http://www.acusd.edu/~biddle): Can
PKI scale to the level of liability inherent in all
signed transactions? What is the real import of a
Certificate Practices Statement (CPS)? (See 
http://www.thawte.com/cps/contents.html for an example 
of a CPS.) Can an electronic entity have the same 
effect as a written notice? Do we really want a 
central, monolithic, government Certificate Authority?

Many of his questions have been answered by time and 
the market, but some have not. Mr. Biddle, at least, 
seems to have stumbled on the magic number of problems 
with PKI, as we see next.Respected cryptographer Bruce 
Schneier and Intel's Carl Ellison recently weighed in 
with the theory that PKI is a figment of security 
vendor imaginations: Because PKI vendors have a profit 
motive in pushing PKI, it really doesn't 
do anything useful. (For their views, see 
http://www.counterpane.com/pki-risks.html .) We'll leave 
finding the flaw in this argument to the reader. Of 
course, Schneier and Ellison raise the obvious point 
among their 10 risks: A certificate does not 
adequately bind a public key to a flesh-and-blood 
human being. A corollary of this argument is that the 
vast majority of humans are too stupid to understand 
the implications of a private key. But what do we have 
today? I sign credit card receipts with handwriting 
that could be imitated by any 12-year-old who reads my 
credit card number from the carbon in the wastebasket. 

So are the PKI vendors evil simply because they want to 
ensure that I authorized my signature? I don't think 
so. The real problem here is that the stool upon which 
our economy rests has three legs: who, what, and when. 
These are the components of a contract -- called a 
transaction in today's time-warped dot-com lingo. PKI 
vendors have actually offered a much better solution 
to one of the legs (namely "who") than what we 
currently have. Unfortunately, they say nothing about 
"what" and "when." These are the real problems 
Schneier and Ellison are complaining about. If I lost 
my private key, when did I lose it? Can I deny every 
transaction I have ever made? Can the content of some 
transactions be verified by other means to repudiate 
falsified receipts? Schneier wrote a book on 
cryptography; he should know the answers to these 
questions are readily available using well-known
techniques. 

The real problem not being addressed by anyone is 
ultimate trust. Whom do you trust? What is trusted in 
your e-commerce or IT environment? Can you think of 
anything that is truly rock solid and as predictable 
as the tides? Proponents of biometrics say they have 
an answer; perhaps that answer is too good. We also 
want a degree of anonymity in our online transactions. 
And biometrics are not impossible to spoof. 
Furthermore, can you trust only one entity, or will 
you require cross-certification by many? E-commerce 
goes on with the PKI that exists today, and may very 
well survive the millennium this way, despite all the 
questions and risks. What do you think? Send messages 
(signed or not) to [EMAIL PROTECTED] 

Stuart McClure is president and CTO and Joel Scambray
is a managing principal at Foundstone
(http://www.foundstone.com). 

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