Before it becomes illegal to distribute and use strong encryption (as has already happened to some extent in the United States), we want to make strong encryption a fact of life that can't be taken away.
Why should we care? Encryption is used to 'hide' secret communications. However, it also has an important role in verification of identity. The PIN number on your bank card identifies you to the banking machine. Once the code is entered along with the card, your money comes out of the machine and your account. The machine assumes it's you when it gets the PIN number. Whether it was you or not, the money comes out of your account. You can trust me when I say that the bank will not be putting the money back into your account, even if you insist it was not you who removed the funds.
However it is used, you have a strong vested personal interest in how encryption is done and the rules which govern it. As your identity moves deeper into cyberspace, you have a right and a responsibility to make sure that only you have control over your private information.
We discuss encryption in more detail in the appendices, but it is important to cover a few basics here. Let's say you need to communicate (electronically, let's say) with your bank manager. You wish him to send a large amount of money to a relative who is in a jam in a foreign country. You need a method whereby he knows for sure that the message is from you and not someone else. There are situations where you wish transfers of funds to take place and you would like them to happen without delay. There are also lots of people out there who will take advantage of any weakness in the system. Until now, the banks have kept one step ahead of criminals But this is an electronic arms race, and the criminals are catching up. One reason in particular that industry is falling behind is that certain individuals who enjoy the luxury of monitoring our communications would like to continue to do so. To this end, they have worked very hard to see that strong encryption is available to them, but not to you.
If you are reading this manual, you likely are ahead of us here. We don't want to preach to the converted. There are reasons that people would like to keep their electronic information a secret and reason why others would like to prevent them from doing so. One way of preventing you from using strong encryption is confusing you by presenting a thousand weak methods and thus reducing the chance that you will pick a strong method, even if it's available. Another method of preventing you from using strong encryption is by fooling governments into legislating against it. Astonishingly, this movement is so far along that they have actually succeeded to some degree. A final method that has always been used is to 'crack' the strong encryption, thus making it useless, but not revealing that it has been cracked, thus rendering it worse than useless. Think about this for a second: You are sending a message that was protected by strong encryption. If the encryption has been broken, the formerly strong encryption acts as a flag that says 'hey - look at me, I'm important - better read me!'. If you are going to use encryption even once for an important message, you are much better off to always use encryption, even for the most trivial message. This radically increases the burden of the attacker who is trying to get that one important message. He now has to open and read everything.
There are any number of systems available to encrypt information. What makes us different? Well, before we get to that, let's look at what encryption is, what makes it strong (good) and what makes it weak (bad):
Encryption is the process of rendering a plain message into a secret message. The plain message can be read by anyone, the secret message can only be read by someone who knows the secret. Here's a secret message: