Infinite OneTime Pad, is this product BS?
 From: Ohm <Ohm@xxxxx>
 Date: Mon, 04 Jan 2010 02:25:13 +0100
I was searching for real One Time Pad encryption software and I came
across this product called Infinite OneTime Pad (IOTP).
I have been reading their FAQ and it sounds like a load of BS, but
I wanted a confirmation from someone who understands how this stuff
works.
I will post some of their FAQ here so there is no need to visit
their website.

Infinite OneTime Pad (IOTP)
http://www.hiddentools.com/iotp/
Infinite OneTime Pad (IOTP) is super secure text encryption and decryption software. It implements the concept of the true OneTime Pad to produce a ciphertext that is unbreakable. This software solves the problem of key distribution and random key generation.
Instead of using a perfect random key, the key material is obtained from any file of your choice. An image file of size 300 KB (jpg) for example is more than enough for most messages. Infinite OneTime Pad uses series of different irreversible algorithms to transform the extracted key. The calculations cannot be reversed and the transformed key has high unpredictability similar to a perfect random key. The transformation depends on the secret code and the password used. Infinite number of keys can be generated from a single key file by using different passwords. This is why it is called Infinite OneTime Pad. It has the strength of the True OneTime Pad and yet, easier to use and implement.
FAQ
Main Features:
Unbreakable Encryption  Text encrypted with Infinite One Time Pad is invulnerable to cryptanalytic attacks.
Builtin Authentication System  You have the option to include origin data such as IP Address, Document Hash Code, Encryption Date, and more. The selected data will be encrypted automatically together with the text and will be used to verify the authenticity of the ciphertext.
Hexadecimal and Base64 Encoding  The cipher text format can be either hexadecimal or base64. These formats are printable and can be delivered via email.
There are 5 protections available. Those in red font are under your control.
Compression  The plain text is compressed in memory to eliminate regularities. This eliminates patterns in the frequency of the occurrence of a specific character in the text.
Secret Key File  You can use any file as a source of key material. The software extracts the nonredundant characters and applies irreversible algorithms to produce a unique key with high entropy that is equal in length with the compressed text.
Secret Code  You can create a new secret code so that the software will use this value every time you encrypt a text. The secret code is used to transform the input text and the key. Every single character of the secret code is used in the transformation. The number of transformations is equal to the length of the secret code.
Key Modification  You can insert words or characters to the key for additional protection.
Password  The password transforms the input text and the key. Every single character of the password is used in the transformation. The number of transformations is equal to the length of the password.
FAQ 2
Perfect randomness is often viewed as a stringent requirement to attain perfect secrecy. This is true in the case of OneTime Pad.
To attain Shannon Security, a key should be perfectly unpredictable random data. Perfect randomness is applicable to the True OneTime Pad simply because the key is directly applied with the plain text hence it is vulnerable to cryptanalytic attacks. If the key material is not truly random, the ciphertext could leak information and the message could be deduced eventually.
Perfect randomness cannot be attained using Pseudo Random Generators (PRNG's) or any algorithms. The output could appear random but the security only lies with the seed of the PRNG which could be subjected to exhaustive attacks. If a secret algorithm is used on software, a clever hacker could possibly analyze and derive the algorithm. Secure encryption software therefore must not rely on the secrecy of the methods or algorithms used.
Absolute randomness is not the only key to perfect secrecy. Belief to the contrary is a delusion.
Infinite OneTime Pad implements the use of any file as a source of key material. To generate a key with unpredictable data from a key file, the algorithm must be irreversible. Cryptanalysts must not be able to determine the original key even if both the algorithm and the transformed key are known. If this is met, even a simple text file could be used as a source of secure key material.
Infinite OneTime Pad works on both the key and the plain text to produce a ciphertext that cannot be analyzed. The plain text is compressed and transformed. The key is also transformed using series of different irreversible algorithms. The compression information is already lost and cannot be recovered from the ciphertext.
The attacker must provide the exact key or else it will fail to decompress. It is impossible for an attacker to reconstruct the exact key by any means. Ciphertext generated using Infinite OneTime Pad does not leak information hence; perfect randomness is not a stringent requirement. The key transformed using the irreversible algorithms has high unpredictability. Moreover, if password protection is used, the ciphertext cannot be broken by brute force. If the password is wrong, it will fail to decompress even if the key is correct.
(Further information at http://www.hiddentools.com/iotp/)
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