A Look Back at the Wild West of Encryption: A Review of “The Business of Secrets”
Bruce Schneier’s review of a recent book detailing the history of Datotek, a Cold War-era encryption company, offers a captivating glimpse into a world of shadowy dealings, technological naiveté, and the surprisingly precarious foundations of secure interaction. It’s a story that highlights just how much has changed in the field of cryptography, and how little we truly knew back then.
The book recounts the experiences of John Kinch, Datotek’s founder, and reveals a startling lack of awareness regarding the competitive landscape. Kinch was reportedly unaware that his largest rival, Crypto AG, was secretly controlled by the CIA and West German intelligence. Imagine the advantage knowing that would have provided! But, as the review emphasizes, this information was simply unavailable at the time.
A World of Uncertainty
The narrative is filled with anecdotes that underscore the era’s uncertainty. Countries would request Datotek’s technology for “evaluation,” then vanish without a word. Was the encryption broken? Were they simply studying the competition? kinch and his team were left in the dark.
This lack of transparency extended to the security of Datotek’s own systems. The core encryption relied on relatively simple linear shift registers – a setup the National Security Agency (NSA) likely used as a training exercise. Yet, Datotek operated under the assumption of security through obscurity.
Trust,But Verify (Barely)
Kinch’s approach to demonstrating security feels almost comical by today’s standards. He’d simply connect two encryptors and allow people to listen to the scrambled voice transmission. One especially bizarre incident involved an Argentine sergeant with a “hearing defect” who could understand the encrypted audio. Datotek addressed the issue, but only offered the fix to Argentina, as no other customers reported problems. This highlights a key point: a profound lack of comprehensive testing and awareness.
Despite these vulnerabilities,Kinch believed his products were a notable enhancement over the electromechanical rotor machines previously in use. And, given that his main competitor was a CIA-backed operation, he was likely correct. Though, the review points out that we still lack a complete understanding of the cryptanalytic capabilities of other nations during that period.
A Unique Ancient Artifact
The book, according to Schneier, feels like a “you had to be there” account. It’s a product of its time, and somewhat tone-deaf in its lack of acknowledgement regarding the human rights records of some of Datotek’s clients. However, it remains a valuable historical document.
It offers a rare look at the world before commercial cryptography became commonplace, before academic research gained acceptance for classified data, and before the broader public understood the underlying mathematics of secure communication.
Key Takeaways:
* Secrecy isn’t security: Relying on the secrecy of algorithms is a flawed approach.
* Context matters: The Cold War environment shaped the advancement and deployment of encryption technology.
* We’ve come a long way: Modern cryptography is far more sophisticated and rigorously tested than the systems of the 1970s.
* Ethical considerations are crucial: The potential for misuse of encryption technology must be acknowledged.
This review serves as a reminder of the evolution of cryptography and the importance of continuous improvement in the face of ever-evolving threats. It’s a story of ingenuity, uncertainty, and the often-hidden forces that shape the world of secure communication.
Originally published on AFIO: https://www.afio.com/book-reviews/
Tags: business of security, cryptography, encryption, history of cryptography.
Posted on November 13, 2025 at 7:09 AM • 0 Comments
