TSHTF writes "Just weeks after Skype unveiled a public API for the service, a group of cryptographers led by Sean O'Neill have successfully reverse engineered the encryption used by the Skype protocol. Source code is available under a non-commercial license which details Skype's implementation of the RC4 cipher." The linked article cautions, however, that "initial analysis suggests that O'Neill's publication does not mean that Skype's encryption can be considered 'cracked'. Further study will be needed to determine whether key expansion and initialisation vector generation are secure."
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