> From: David Lang [mailto:da...@lang.hm]
>  
> um, no. If the server is making use of your data (like using it to provide 
> you a
> service, basically anything more than passively storing data for you ala
> dropbox) they can do a lot more bad thins to yo than to delete your data.
> 
> Think about your bank, not dropbox.

I think we're agreed that even if the server actively processes your data for 
you, there's no advantage to authentication with password exposure. It would be 
better to instead use a zero knowledge proof of password.

And I think we're also agreed that client-side encryption is not always 
possible, because the server needs to actually process your data in order to 
serve you. (At least, not until homomorphic encryption matures a bit more). But 
some really big uses of the Internet are communications - email, txt messages, 
IM, file sharing, voice communications, video chat, etc. For these, the server 
itself and the admins working on the server don't need access, so client-side 
encryption is desirable.
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