RC4 is a pour nothing and variable-length cardinal algorithm. This algorithm encrypts one byte at a time ( or larger units at a clock time ).
A key input is pseudorandom piece generator that produces a pour 8-bit count that is unpredictable without cognition of input signal key, The output of the generator is called key-stream, is combined one byte at a time with the plaintext stream zero using X-OR operation.
Example:

RC4 Encryption 
10011000 ? 01010000 = 11001000    

RC4 Decryption 
11001000 ? 01010000 = 10011000

Key-Generation Algorithm –
A variable-length key from 1 to 256 bytes is used to initialize a 256-byte submit vector S, with elements S [ 0 ] to S [ 255 ]. For encoding and decoding, a byte thousand is generated from S by selecting one of the 255 entries in a systematic manner, then the entries in S are permuted again .

  1. Key-Scheduling Algorithm:
    Initialization: The entries of S are set equal to the values from 0 to 255 in ascending order, a temporary vector T, is created.
    If the length of the key k is 256 bytes, then k is assigned to T. Otherwise, for a key with length(k-len) bytes, the first k-len elements of T as copied from K, and then K is repeated as many times as necessary to fill T. The idea is illustrated as follow:



    for      i = 0 to 255 do S[i] = i; T[i] = K[i mod k - len];

    
    

    
    

    we use T to produce the initial substitution of S. Starting with S [ 0 ] to S [ 255 ], and for each S [ one ] algorithm trade it with another byte in S according to a schema dictated by T [ one ], but S will still contain values from 0 to 255 :


    j = 0 ; for      i = 0 to 255 do      {          j = (j + S[i] + T[i])mod 256 ;          Swap(S[i], S[j]);      }

    
    

    
    
  2. Pseudo random generation algorithm (Stream Generation):
    Once the vector S is initialized, the input key will not be used. In this step, for each S[i] algorithm swap it with another byte in S according to a scheme dictated by the current configuration of S. After reaching S[255] the process continues, starting from S[0] again



    i, j = 0 ; while ( true )      i = (i + 1 )mod 256 ; j = (j + S[i])mod 256 ; Swap(S[i], S[j]); t = (S[i] + S[j])mod 256 ; k = S[t];

    
    

    
    
  3. Encrypt using X-Or(): 55

News :
In September 2015, Microsoft announced the end of using RC4 in Microsoft boundary and internet internet explorer 11. This video gives a absolved model of RC4 algorithm

My Personal Notes

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