I need to see real growth in metrics like customer acquisition and trading volume before making a deeper commitment. From what I can tell, the news about EDXM will only be positive for Coinbase if it helps to expand the pie for the crypto industry as a whole. That's right -- they think these 10 stocks are even better buys. Independent nature of EDXM would also restrain the firm from the possibility of conflicts of interest. EDXM needed to prove its utility to stay relevant within the crypto space though. For now, I'm taking a wait-and-see backed crypto exchange with Coinbase. Meanwhile, the EDX exchange would work to accommodate both private and institutional investors.
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The extent to which C is altered by the input depends entirely on the transformation function f. In hash applications, resistance to collision or preimage attacks depends on C, and its size, the "capacity" c, is typically twice the desired resistance level. Duplex construction[ edit ] It is also possible to absorb and squeeze in an alternating fashion. This operation is called the duplex construction or duplexing. It can be the basis of a single pass authenticated encryption system.
The sponge construction can also be used to build practical cryptographic primitives. For example, Keccak is a cryptographic sponge with a bit state. The strength of Keccak derives from the intricate, multi-round permutation f that its authors developed.
The RC4 -redesign called Spritz refers to the sponge-construct to define the algorithm. For another example, a sponge function can be used to build authenticated encryption with associated data AEAD. Another analogue is a perpetual stew : a big stew that's regularly replenished with fresh ingredients. The outcome is never the same, since it depends on the ingredients added, on how many people eat from it, or the season and seasoning, and possibly other factors.
A sponge can be built into many things, among which a hash function: you use the sponge to absorb the input data, and then squeeze out just enough to form a hash. Or you can use it very neatly for Fiat-Shamir transforms, e. Or you can use a sponge as a stream cipher: absorb key material and squeeze out as much cipher stream as you need.
At that point, the physical analogy with a sponge is getting difficult: a sponge can only squeeze out as much as was absorbed, while a cryptographic sponge can continue to squeeze out as much as necessary, until the security possibly starts breaking down. Disclaimer: I've tried to have this answer to focus on intuition, which could impede on technical correctness.
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