Intel's encryption in Eaglelake or should we trust hardware encryption?

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The following link has a presentation about the upcoming 'technology'
in the Intel chipset Eaglelake. First of all, this sounds really
interesting in terms of performance. It basically talks about
embedding hardware encryption within the hard disk controller on the
north bridge.

http://inteldeveloperforum.com.edgesuite.net/fall_2007/d2/SCIS003/f.htm

I apologize for posting this link. It will only play in Internet
Explorer browsers and -- even worse -- for me, only after installing
Windows Media Player 10. Feel free to flame Intel therefore.

You can safely focus on minute 24. The rest of the presentation is
about management stuff and hyping some 3rd party vendor's product
(not interesting at all).

However, it got me thinking whether I trust these solution. I
inherently feel more secure when using software I wrote and compiled
myself than using hardware. But what's the difference when the
bitstream that tumbles out at both ends -- AES hardware and AES
software -- are identical?

I found for me that the argument that makes me uneasy is that hardware
encryption is so much more specialized in use than a general purpose
CPU. The intentions are so much more clear when using the API. The key
when loaded into the chipset really stands out and capturing it is so
much more easy; capturing can mean by sniffing the bus (which is
technically almost impossible for attackers with limited budget, also
the system has to be online, and you have to type in key material
while the attack is in progress). 

What I'm more worried about is intentionally backdoored crypto
hardware. Are we really so naive to believe that -- given the series
of illegal (no search warrants, no respective law) cooperations of
large business entities with the NSA[1] -- these guys will allow it to
happen that Intel starts (significant market share) to deploy
industrial strength encryption technology worldwide? Even if I'm not
that paranoid that answer wholehearted "No" to this question, I'm still
suspicious.

The same task for backdooring CPUs is almost impossible. It is
inherently hard to semantically decipher the stream of instructions by
static/syntactic analysis. Tell apart the set of instruction that sets
up an AES key from the instructions that does context switching,
device management or displays the toolbar of your email client can't
be done, hence no backdooring is possible, here. As said, for special
purpose hardware it's all different. The API is clearly sketched out
and tampering with the crypto chip itself would be the way to go if
you are a large intelligence agency and your business consists of
mass monitoring.

I hope the community can produce good counter arguments to my
reasoning above. I hope so because, otherwise I should start to push
for performance of dm-crypt even without hardware assistance.
--
Fruhwirth Clemens - http://clemens.endorphin.org 

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