>
> You have two (or more) computers connected to each other. I'm assuming
> they are also connected to the Internet somehow (you didn't mention). If
> you trust every other computer (and users) in your internal network
> *and* you trust your protection from the Internet, then you don't need
> SSH. Physical distance doesn't matter.


I connect to Internet using mobile broadband when needed. Both PCs are
connected via a LAN cable and these are the only computers in the
internal network. The traffic is not routed through the Internet.

So in a net shell SSH is only needed if the transport layer is
susceptible to eavesdropping.
I might still use SSH for compression.

I should have been more clear in my OP, I was inquiring about the
security implications of using xauth more than routhing traffic over
an untrusted network without encryption.
-- 
Kind regards,
Yudi


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