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Curve25519 was supposed to be mainly used for Diffie-Hellman key-exchange and it provides ~128bit security and should fulfill all standard security assumptions on elliptic curves (and even some more). Now to answer the question is: yes. ElGamal can be used securely with Curve25519, as ElGamal is simply a Diffie-Hellman key-exchange ($\delta= m*g^{\alpha ...

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