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3

To answer your first question, the incrementation is required in order to prevent spoofing of that message. An attacker could send back the same encrypted nonce claiming to be Bob. However, if Bob incriments the nonce and sends it back encrypted, Alice would know for sure that Bob has received the nonce and has incremented it. Now, Alice encrypting the ...

6

My only idea is that B authenticates himself to A, because if A later decrypts it, A will see whether B was able to decrypt it. But why would you need to increment the nonce? Correct, that's the idea. If B didn't need to increment the nonce and just encrypted the same value, the message sent back would be the same that A sent, so an attacker would be ...

1

If you reuse a nonce, you lose confidentiality for the messages with that nonce. Messages with other nonces retain their confidentiality. However, the attacker can also attack the MAC part (Poly1305) and generate a third and more messages with the same nonce. See: Why is Poly1305 popular given its 'sudden death' properties? So unless you have a way ...

4

The only limitation that you really have to consider is that of nonce collisions. With 128-bit random nonces, you would expect collisions after about $2^{64}$ nonces due to the birthday bound. Even if you stored all 30 fields of all 50 million rows thousands of times (you need a new nonce if a field is rewritten), you would still have a chance smaller than ...

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