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Signal stores media in internal storage rather than demanding access to external storage and sharing it with other apps by default. WhatsApp, etc. are explicitly designed to share received media with other apps by default. They go out of their way to store it in shared storage.
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There's a lot more to an app having good privacy characteristics than using end-to-end encryption. WhatsApp using the Signal encryption protocol doesn't mean that it offers comparable privacy and security when it comes to other things like not sharing your media with other apps.
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They're explicitly choosing to share the media with other apps. To disallow other apps from reading it, they would simply need to use the standard storage inside the app sandbox. They're requesting the external storage permission and going out of their way to make it shared data.
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It can mitigate a file access vulnerability in the app or the OS, which is why Signal encrypts the database with the hardware-backed keystore. It doesn't protect the data against an exploit of the app or the OS if it's not limited to file access though.
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There's an API to bind the hardware-backed key to the screen being unlocked, and it's simply a boolean they could set, but they currently require access to the database even when the device is locked. An app-specific encryption passphrase would be similar and takes that further.
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I agree, but I think most app developers won't be interested in this. It's a hard sell even for the Signal developers. They could definitely implement it and they're part of the way there since the database is encrypted with the hardware-backed keystore on Android already.
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