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This is a academical discussion. Storing signal contacts encrypted with a password + sgx has no practical security impact. Users are reading this discussion and switching to wire or telegram. Where this data and all your messages on telegram is stored in PLAINTEXT on serverss
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Also this discussion ignores reality. If you ever used an other big messenger all your contacts have been uploaded in plaintext. If a person who has your phone number used e.g WhatsApp your contact was uploaded in plaintext. If you sync your contacts: also uploaded in plaintext
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Signal is the ONLY Messenger / App that uses contact information where the information is encrypted + you have control over the password used for encryption, so this data can be stored for it to be uncrackable by bruteforce.
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They also encourage a weak PIN due to using SGX and they exaggerate the security it provides. Providing an opt-out doesn't resolve the problems. Under the hood, the opt-out just generates a high entropy random PIN which you could already do. They treated this as only a PR issue.
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SGX does not provide strong security properties. It's not even an actual secure element. The attestation they depend on is based on a root of trust. Thread: twitter.com/DanielMicay/st Every Intel CPU with SGX has a key that can be leaked and used to fake attestations for any CPU.
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Secure elements are a nice way to supplement baseline privacy/security. The design should work without it. Changing your design due to having a secure element is problematic. Encouraging a weak PIN when you would have otherwise wanted a strong passphrase is a problem.
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Does not mean attestation is a bad or weak security feature, but attestation based on a root of trust like this is definitely a weak security feature that's a good fit for anti-cheat, DRM, etc. but not important security features that are relied upon rather than supplemental.
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If they generated a passphrase on behalf of users, they wouldn't have a use for SGX. They use SGX because they know users will choose weak PINs that are easily brute forced. In fact, they encourage users to do it with the UI and mislead people into thinking SGX makes that okay.
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