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Typical scenario is to run the raw shared secret through a key derivation function to generate keys for any symmetric primitives they will use.


Not always, it depends on the particular encryption scheme. Strictly speaking, the proofs only say that breaking indistinguishability is equivalent to breaking the hardness assumption they are based on. There are some cryptosystems, like Rabin's, where the security of the key is equivalent to the security of the ciphertexts, i.e. factoring <=> key ...

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