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Using a stream cipher for mass generation of "random" bytes is a fairly good solution, however the risk is loosing Forward Secrecy at some point. The trick then is re-keying the cipher often enough, and having a good source of random data with which to rekey your cipher. See Fortuna.


Some brief thoughts: Shared secret Generation: $$s=E_a(B)=E_b(A)$$ The shared secret is generated by encrypting the other users public key with your private key. This is effectively an ECDH step, which is very reasonable, and one of the key aims of C25519$^{[1]}$. Key Generation: $$s_0=\mathrm{SHA256}(s); s_i=\mathrm{SHA256}(s_{i-1})$$ First, using the ...

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