This is a based on the page Blobby the multi-factor encryption engine as retrieved 2020-06-30T14:24Z from the Tor URL in the question.
The claimed novelty for this encryption scheme (per that page and the question) is the combination of a nearly-arbitrary sized password and an arbitrary sized key. But there is no novelty there. A password-based key derivation function that hashes its inputs, followed by a standard cipher does that.
As rightly pointed in the question, the claims around $10^{41485806}$ makes it impossible that it is keys (see 3 below). That must be possible keystreams, and then that number is unsurprising.
On that page:
Standard ciphers are introduced, with unfortunate technical¹ and terminology² errors along the way.
It is argued AES-256 has insufficient keyspace, with math that turns against that claim if we care to actually perform the computations³.
Blobby boasts having 1041,485,806 unstated things compared to possible keys in other ciphers. That's incompatible with the size stated for the corresponding key material: <50 kiB total, which can encode at most 25650×1024 keys, less than 10123,302. Which is still more than enough.
the attached files are encrypted with 1041,485,806 and this demo is by no means blobby's higher end.
Still we get that Blobby is a symmetric cipher with a huge keyspace, and a key so large that it must be stored as a file (like GPG/OpenPGP asymmetric keys).
Most standard ciphers and many encryption tools have a key or a password. Blobby has both, which justifies «Multi Factor». That puts Blobby in the same category as encryption programs like TrueCrypt/VeraCrypt, BestCrypt, KeePass, and GPG/openPGP when asymmetric keys are password-protected.
Many standard ciphers and most encryption tools (with the exception of full disk encryption tools like TrueCrypt/VeraCrypt) do not attempt to hide the plaintext length, Blobby does, and seems to hide if there's activity in real time. The argumentation about that part is fine.
There is no description of the algorithms used, and that's claimed normal⁴. But that goes against the best established principle in >130 years of cryptographic academia: Kerckhoffs's (second) principle. And there is not a word about the critical stretching of the password.
An example of ciphertext is used as security argument, which is grossly inadequate for a falsifiable claim of security. That goes with the use of non-standard cryptographic terminology like «mutagen»⁵.
It's for sale on Tor:
If you wish to make an offer…
Conclusion: The principles in 5 and 6 have technical merit. The rest is characteristic of snake oil cryptography in the password-based category.
¹ Technical error:
Block (cipher): The clear text is broken into fixed size 'blocks' according to the chosen ciphers' spec, and each block is encrypted with the full strength of the key. Data leftover from the final operation is padded to ensure it meets the block size and then encrypted.
Yes.
Each cipher has it's own methods of mutating the key, to avoid any repeating patterns.
No. That's not how block ciphers are operated, and has not changed since 1975. It is used the same key for all blocks in a message, and often for multiple messages, per a block cipher mode (e.g. CTR). Under the assumption the the block cipher is secure, this demonstrably gives security under chosen plaintext attack.
² Terminology error:
One Touch Pad (OTP):
The acronym really stands for One Time Pad. The discussion made of it is fine.
³ Attempt to discredit AES-256 for insufficient key space:
The gentle art of breaking cryptographic keys, cracking step 3:…
So start at zero and increment by one, testing each number against the cipher before moving on. There are of course, a lot of numbers that would never be used in production. They can be excluded, but as AES256 rounds out at ~1.15*1077 it'll still take a while.
This «a while» is the mother of all euphemisms!
newer ARM servers can run 748 (threads…) each one able to make over a million guesses a second.
Make that a billion guesses per second, because that's only a few times more than what's routinely achieved for AES by a single thread.
Consider that the largest BOTNET, discovered to date, had slaved over 1.5 million machines.
I'll make it 10 million machines each with 748 threads running at a billion keys per second for a century, because imagination is cheap (if not electricity). We get 107×748×109×86400×365.25×100 keys enumerated. That is n = 2.4×1028. Probability to have hit the right key, if it was chosen secretly and at random, is n/2256, that is ≈2×10-49. Less than throwing a fair coin and getting 161 consecutive heads.
All that and we haven't even mentioned, the now commercially available Quantum computers. Which love parallel processing and make the botnet look like a row boat.
They are not ready for prime time, and so far have not performed anything useful for cryptanalysis. On that standpoint, their are beaten by pencil and back of an envelope. But in the wildest dreams (if not pipes) there's hope QC can replace the 256 by 256/2 = 128. Probability that the key is found becomes, ultra-conservatively, less than throwing a fair coin and getting 33 consecutive heads.
Still feeling safe with AES?
Safe from brute force key search for AES-256, positively. There's safety in the numbers.
Since there is an open crypto community (1975), there has been quite a consensus on the necessary key size for symmetric cryptography (like Blobby is) to resist brute force attack (the only kind considered on the web page). The 56-bit DES key was clearly not enough, that was immediately apparent. It is now declassified it was that low to allow brute force attack. The frontier for minimum reasonable (absent stretching) long was 80-bit, now is 96-bit or 112-bit, with 128-bit the standard for commercial crypto. There's consensus 256-bit is fine including against quantum computers, and 512-bit overkill. Anything more is pointless, can be counterproductive, and is indicative of not understanding where the real difficulties are: cryptanalysis other than brute force, key leak, side channels.
⁴ Quoting a Q&A:
Are there other mutagens⁵ in use? Of course, but it's not likely we'll detail them here, now is it?
⁵ Perhaps «mutagen» is standard terminology in the crypto Tor world after all: it's also in the question, posted thru Tor like the article and the two answers by user Blobbly.