The traffic is encrypted using AES-256. Many protocols, such as TLS, do not have strong post-quantum security in their handshakes. This new layer means that those handshakes are protected on the wire by AES, which is safe against post-quantum risks.
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If you're worried about someone collecting data today, and decrypting it later when Quantum Computing is practical, this is nice defense in depth.
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To avoid Post-Quantum problems itself, VPC Encryption uses symmetric keys that are shared between senders. They are frequently rotated and revoked to provide forward secrecy.
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To avoid having any sensitive system that knows all of the keys; there are two independent, very different, key distribution mechanisms. Each distributes "pre-key material" which is then only combined in our Nitro security system to derive the real key.
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The effect of that is that if one of the distribution systems were some how compromised, this would not disclose the actual encryption keys. Very nice pattern to have!
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VPC Encryption compliments VPC Inter-Region Peering, which we've been similarly encrypting (with similar key derivation) from the day it launched. Underneath, and in addition to, all of this is the Lever Link Encryption Project.
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The Lever Link Encryption Project has been a truly massive endeavor to strongly encrypt, for now and all time, every network link that is in any way out of AWS physical control.
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Physical control means inside a facility we own and operate; and sometimes it means secure ducting over short distances with cool lasers that can detect any interference.
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If a link is outside our premises, or crossing an ocean, we encrypt it. For encryption, we use AES-256 again, with MACsec or Optical Layer encryption, with some more clever key agreement schemes that we had to invent! But don't worry, they are reassuringly boring.
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Replying to @colmmacc
Some of us love boring cryptography. New key agreement protocols should be peer-reviewed, shouldn’t they? Moreover if I've understood well and it provides some form of PQ resistance (AES-256 can resist but you need to agree using some public key cryptography
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It's nothing exciting, just using shared symmetric PSKs as an additional layer. Those mechanisms are peer reviewed, but new in this context. Might be a good topic for @RealWorldCrypto!
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