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The solution is called onion routing; the gist of it is that there are a number of anonymising servers; when Alice wants to send a message to Bob, she picks a random route through a number of the servers; she then repeatedly encrypts the message for each hop, and sends the encrypted message (which states only the first hop in the clear) to the first server. ...


Anonymity is indeed hard. How practical does it have to be? There's a trivial solution which is to broadcast everything. That way Carol can make correlations based on the time of messages but otherwise cannot know the destination of each message. The messages can be filtered by the recipient based on an encrypted destination identity that only they can ...


Yes, the above concept is broadly equivalent to onion routing and mix networks (although please refer to these links for a more accurate description).


No. What this means is that they concatenate all of this data and then SHA1-hash the concatenation. There's no xor-ing of digests or anything like that. The reason it's described this way is because many hashing APIs allow you to specify the data in a streaming fashion: you can specify the first few bytes of the message to be hashed, then you can specify ...

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