running some simulations and when we get to ~500 nodes, within a few minutes I am finding a deaddrop address that has the exact distance to ~20 nodes. this is at distance 24, which I believe is about 1/256 of total nodes and with a K factor of 7 even without any special relaxing of distance requirements, the packets will automatically arrive at your IP
The larger the distance, the easier it is to find matches. At bigger distances, 10% or even more of the sample set are exact matched. The good thing is that when the total network size is small, we can just cache all the nodes so big distance wont matter.
I also got it so that each node creates a list of addresses to match against and when the network is bigger, each node will hav a slightly different list it will be optimizing against.
It looks like we can have a set of deaddrop addresses that each have exact distance match to 10 to 100 public privacy servers and also decent distances to a lot of other nodes. Then we can choose 64 of these deaddrop addresses to establish a super secure link.
Since the only one that actually knows the IP address is the person running the node, I think that short of it being compromised there is no practical way of correlating your IP address. keep in mind that packets are sent to 64 different deaddrop addresses that dont really exist, so I am not sure how anybody would setup a sybil attack or any other attack to link your IP address to your acct.
Now even if somehow this info leaked, just knowing your acct # and IP address is still not enough as you would be transacting with telepods which themselves have no acct linked to you. Since people had a hard time understanding the simpler form of Teleport, I fear that few will be able to understand the new deaddrop approach. Hopefully somebody will provide some feedback on its weaknesses, if it has any.
I feel this is a fundamental improvement in privacy. In all prior versions, there was at least a statistical linkage of your acct # with IP address. Now, all that is happening is that packets are being sent to dead addresses so there is nothing to correlate. Other than the distances to the other nodes, but with the mining of equidistant addresses, this only gives a statistical correlation, and that is a dynamically changing thing, especially with the randomized sending of packets to the set of deaddrop addresses.
This is a bit of unexpected extra work, but the qualitative increase in privacy is well worth it. A key thing to realize is that all of the SuperNET just gets this level of privacy for all comms
James