Full-State Keyed Sponge (aka Donkey Sponge) is when a message is absorbed into the full state of the sponge.
Such an approach to MAC construction is considered secure. 1
However for an AEAD or a stream cipher, exposing the state obviously breaks it.
Would utilizing a XEX-like approach be able to secure such a scheme?
Let P be a permutation such as Keccak-p. Using P we construct a duplex object such as:
We modify it to no longer have a hidden state (second lane in the diagram above).
This would result in a broken cipher as the state leaks via Cx.
The proposed fix is to have
Cx = Px ⊕ STATE(x) ⊕ STATE(x-1)
Note that
STATE(x+1) = P(STATE(x) ⊕ Px)
Where
|Cx| = |Px| = |STATE(x)|
Would this work to secure the cipher? I have been unable to find any papers on the subject.
My attempt to analyze it yielded:
Cx = Px ⊕ STATE(x) ⊕ STATE(x-1)
Cx+1 = Px+1 ⊕ STATE(x+1) ⊕ STATE(x)
Meaning that an attacker could obtain:
STATE(x+1) ⊕ STATE(x-1)
Therefore, could obtain:
STATE(J) ⊕ STATE(J+n)
for any n > 0 where J is one step prior to the beginning of ciphertext extraction.
But I don't see how that can help leak the STATE at any point or lead to an attack on the cipher.