One reason many people get confused is that to the left of the colon,
A nonce can be anything that guarantees the freshness of a message. It can be a random number, a counter, a random challenge received from a third party, or even a timestamp. There are subtle differences between them, such as in the level of resistance they offer to various kinds of replay attack, and the ways in which they increase system cost and complexity. In very low-cost systems, random numbers and counters predominate as it's cheaper to communicate in one direction only, and cheap devices usually don't have clocks.
Key management in such devices can be very simple. In a typical garage token product, each token's key is just its unique device number encrypted under a global master key
This is known as key diversification or key derivation. It's a common way of implementing access tokens, and is widely used in smartcards too. The goal is that someone who compromises a token by drilling into it and extracting the key cannot masquerade as any other token; all he can do is make a copy of one particular subscriber's token. In order to do a complete break of the system, and extract the master key that would enable him to pretend to be any of the system's users, an attacker has to compromise the central server at the garage (which might protect this key in a tamper-resistant smartcard or hardware security module).
But there is still room for error. A common failure mode is for the serial numbers – whether unique device numbers or protocol counters – not to be long enough, so that someone occasionally finds that their remote control works for another car in the car park as well. This can be masked by cryptography. Having 128-bit keys doesn't help if the key is derived by encrypting a 16-bit device number, or by taking a 16-bit key and repeating it eight times. In either case, there are only
Protocol vulnerabilities usually give rise to more, and simpler, attacks than cryptographic weaknesses do. An example comes from the world of prepayment utility meters. Over a million households in the UK, plus over 400 million in developing countries, have an electricity or gas meter that accepts encrypted tokens: the householder buys a magic number and types it into the meter, which then dispenses the purchased quantity of energy. One early meter that was widely used in South Africa checked only that the nonce was different from last time. So the customer could charge their meter indefinitely by buying two low-value power tickets and then feeding them in one after the other; given two valid codes
So the question of whether to use a random number or a counter is not as easy as it looks. If you use random numbers, the lock has to remember a lot of past codes. There's the valet attack, where someone with temporary access, such as a valet parking attendant, records some access codes and replays them later to steal your car. In addition, someone might rent a car, record enough unlock codes, and then go back later to the rental lot to steal it. Providing enough nonvolatile memory to remember thousands of old codes might add a few cents to the cost of your lock.
If you opt for counters, the problem is synchronization. The key might be used for more than one lock; it may also be activated repeatedly by accident (I once took an experimental token home where it was gnawed by my dogs). So you need a way to recover after the counter has been incremented hundreds or possibly even thousands of times. One common product uses a sixteen bit counter, and allows access when the deciphered counter value is the last valid code incremented by no more than sixteen. To cope with cases where the token has been used more than sixteen times elsewhere (or gnawed by a family pet), the lock will open on a second press provided that the counter value has been incremented between 17 and 32,767 times since a valid code was entered (the counter rolls over so that 0 is the successor of 65,535). This is fine in many applications, but a thief who can get six well-chosen access codes – say for values 0, 1, 20,000, 20,001, 40,000 and 40,001 – can break the system completely. In your application, would you be worried about that?
So designing even a simple token authentication mechanism is not as easy as it looks, and if you assume that your product will only attract low-grade adversaries, this assumption might fail over time. An example is accessory control. Many printer companies embed authentication mechanisms in printers to ensure that genuine toner cartridges are used. If a competitor's product is loaded instead, the printer may quietly downgrade from 1200 dpi to 300 dpi, or simply refuse to work at all. All sorts of other industries are getting in on the act, from scientific instruments to games consoles. The cryptographic mechanisms used to support this started off in the 1990s being fairly rudimentary, as vendors thought that any competitor who circumvented them on an industrial scale could be sued or even jailed under copyright law. But then a judge found that while a vendor had the right to hire the best cryptographer they could find to lock their customers in, a competitor also had the right to hire the best cryptanalyst they could find to set them free to buy accessories from elsewhere. This set off a serious arms race, which we'll discuss in section 24.6. Here I'll just remark that security isn't always a good thing. Security mechanisms are used to support many business models, where they're typically stopping the device's owner doing things she wants to rather than protecting her from the bad guys. The effect may be contrary to public policy; one example is cellphone locking, which results in hundreds of millions of handsets ending up in landfills each year, with toxic heavy metals as well as the embedded carbon cost.
4.3.1 Challenge and response
Since 1995, all cars sold in Europe were required to have a ‘cryptographically enabled immobiliser’ and by 2010, most cars had remote-controlled door unlocking too, though most also have a fallback metal key so you can still get into your car even if the key fob battery is flat. The engine immobiliser is harder to bypass using physical means and uses a two-pass challenge-response protocol to authorise engine start. As the car key is inserted into the steering lock, the engine controller sends a challenge consisting of a random
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