The Key Distribution Problem

The video discusses the key distribution problem, a fundamental issue in cryptography, highlighting the need for secure key establishment. It explains the importance of shared randomness, which is crucial for creating a secure communication channel. The video also explores two main solutions to the key distribution problem: public key cryptosystems, widely used in banking, and the emerging field of quantum cryptography.

Explain the significance of the one-time pad in the context of cryptography. Why is it considered a perfect cipher?

What role do public key cryptosystems play in modern banking and electronic transactions?