whitex
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It's an older approach than PUFs, but definitely newer, more robust than the technique you described (at least as I understood it). The problem with storing a secret hash or a symmetric key in the OTP is, as you described, that an attacker has physical access to the device which has the secret, meaning they can find a way to read it, and once they read it, they hacked the device and create their own malicious payloads. If the secret is the same across many devices, then it's a "break one, break all" scenario. With a public key approach, no secrets to break. The only way you can break it is if you manage to compromise the private key, which is very mathematically intense, and for a physical attack you'll need to break into a vault somewhere and steal the HSM. Also, latest elliptic curve crypto can be used to future-proof it.I’m going to check this out with our security expert. This sounds like an older approach , but let me check it out.
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