IKE Protocol
 IPsec implements a VPN  solution using an encryption process that involves the periodic changing of  encryption keys. IPsec uses the IKE protocol to authenticate a peer computer and  to generate encryption keys. IKE negotiates a security association (SA), which  is an agreement between two peers engaging in an IPsec exchange, and consists of  all the required parameters necessary to establish successful communication.
IPsec implements a VPN  solution using an encryption process that involves the periodic changing of  encryption keys. IPsec uses the IKE protocol to authenticate a peer computer and  to generate encryption keys. IKE negotiates a security association (SA), which  is an agreement between two peers engaging in an IPsec exchange, and consists of  all the required parameters necessary to establish successful communication.
 IPsec uses the IKE protocol to provide these  functions:
IPsec uses the IKE protocol to provide these  functions:
-   Negotiation of SA characteristics Negotiation of SA characteristics
-   Automatic key generation Automatic key generation
-   Automatic key refresh Automatic key refresh
-   Manageable manual configuration Manageable manual configuration
 To establish a secure communication channel between two  peers, the IKE protocol uses the following three modes of operation:
To establish a secure communication channel between two  peers, the IKE protocol uses the following three modes of operation:
-   Main mode: In main mode, an IKE session  begins with one computer (the initiator) sending a proposal or proposals to  another computer (the responder). The proposal sent by the initiator defines  what encryption and authentication protocols are acceptable, how long keys  should remain active, and whether Perfect Forward Secrecy (PFS) should be  enforced. There are three exchanges typical of the main mode: Main mode: In main mode, an IKE session  begins with one computer (the initiator) sending a proposal or proposals to  another computer (the responder). The proposal sent by the initiator defines  what encryption and authentication protocols are acceptable, how long keys  should remain active, and whether Perfect Forward Secrecy (PFS) should be  enforced. There are three exchanges typical of the main mode:-   The first exchange between the initiator and the  responder establishes the basic security policy. The responder chooses a  proposal best suited to the security situation and then sends that proposal to  the initiator. The first exchange between the initiator and the  responder establishes the basic security policy. The responder chooses a  proposal best suited to the security situation and then sends that proposal to  the initiator.
-   The next exchange passes DH public keys between the two  users. DH key exchange is a cryptographic protocol that allows two parties that  have no prior knowledge of each other to establish a shared-secret key over an  unsecure communications channel. All further negotiation is encrypted within the  IKE SA. The next exchange passes DH public keys between the two  users. DH key exchange is a cryptographic protocol that allows two parties that  have no prior knowledge of each other to establish a shared-secret key over an  unsecure communications channel. All further negotiation is encrypted within the  IKE SA.
-   The third exchange authenticates an Internet Security  Association and Key Management Protocol (ISAKMP) session. Once the IKE SA is  established, IPsec quick mode negotiation begins. The third exchange authenticates an Internet Security  Association and Key Management Protocol (ISAKMP) session. Once the IKE SA is  established, IPsec quick mode negotiation begins.
 
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-   Aggressive mode: Aggressive mode  compresses the IKE SA negotiation phases described thus far into three packets.  In aggressive mode, the initiator passes all data that is required for the SA.  The responder sends the proposal, key material, and ID and authenticates the  session in the next packet. The initiator replies by authenticating the session.  Negotiation is quicker, and the initiator and responder IDs pass in  plaintext. Aggressive mode: Aggressive mode  compresses the IKE SA negotiation phases described thus far into three packets.  In aggressive mode, the initiator passes all data that is required for the SA.  The responder sends the proposal, key material, and ID and authenticates the  session in the next packet. The initiator replies by authenticating the session.  Negotiation is quicker, and the initiator and responder IDs pass in  plaintext.
-   Quick mode: Quick mode IPsec  negotiation takes place after successful IKE SA negotiation. Quick mode is  similar to aggressive mode IKE negotiation, except that negotiation is protected  within an IKE SA. Quick mode negotiates the SA for the data encryption and  manages the key exchange for that IPsec SA. Quick mode: Quick mode IPsec  negotiation takes place after successful IKE SA negotiation. Quick mode is  similar to aggressive mode IKE negotiation, except that negotiation is protected  within an IKE SA. Quick mode negotiates the SA for the data encryption and  manages the key exchange for that IPsec SA.
 To establish a secure  communication channel between two peers, the IKE protocol executes the following  phases:
To establish a secure  communication channel between two peers, the IKE protocol executes the following  phases:
-   IKE Phase 1: In IKE Phase 1, two IPsec  peers perform the initial negotiation of SAs. In this phase, the SA negotiations  are bidirectional; data may be sent and received using the same encryption key.  In IKE Phase 1, the transform sets, hash methods, and other parameters are  determined. Optionally, IKE Phase 1 can include authentication, in which each  peer in the SA negotiation is able to verify the identity of the other. Even if  the SA negotiation data stream between the two IPsec peers is compromised, there  is little chance that the encryption keys could be guessed and thus the traffic  decrypted. IKE Phase 1: In IKE Phase 1, two IPsec  peers perform the initial negotiation of SAs. In this phase, the SA negotiations  are bidirectional; data may be sent and received using the same encryption key.  In IKE Phase 1, the transform sets, hash methods, and other parameters are  determined. Optionally, IKE Phase 1 can include authentication, in which each  peer in the SA negotiation is able to verify the identity of the other. Even if  the SA negotiation data stream between the two IPsec peers is compromised, there  is little chance that the encryption keys could be guessed and thus the traffic  decrypted.
-   IKE Phase 2: In IKE Phase 2, SAs are  negotiated by the IKE process ISAKMP on behalf of other services, such as IPsec,  that need encryption key material for operation. Quick mode negotiates the IKE  Phase 2 SAs. In this phase, the SAs that IPsec uses are unidirectional;  therefore, a separate key exchange is required for each data flow. IKE Phase 2: In IKE Phase 2, SAs are  negotiated by the IKE process ISAKMP on behalf of other services, such as IPsec,  that need encryption key material for operation. Quick mode negotiates the IKE  Phase 2 SAs. In this phase, the SAs that IPsec uses are unidirectional;  therefore, a separate key exchange is required for each data flow.Note  Other, optional parameters are sometimes negotiated  between IKE Phase 1 and IKE Phase 2, such as level of DH, encryption algorithms,  and methods of authentication. Other, optional parameters are sometimes negotiated  between IKE Phase 1 and IKE Phase 2, such as level of DH, encryption algorithms,  and methods of authentication.
 IKE Phase 1
IKE Phase 1
  The basic purpose of IKE Phase 1, shown in Figure 5-15, is to  negotiate IKE policy sets, authenticate the peers, and set up a secure channel  between the peers. IKE Phase 1 occurs in two modes: main mode and aggressive  mode.
The basic purpose of IKE Phase 1, shown in Figure 5-15, is to  negotiate IKE policy sets, authenticate the peers, and set up a secure channel  between the peers. IKE Phase 1 occurs in two modes: main mode and aggressive  mode.
 Main mode has three two-way exchanges between the initiator and  receiver:
Main mode has three two-way exchanges between the initiator and  receiver:
-   First exchange: Peers negotiate and  agree on the algorithms and hashes that will be used to secure the IKE  communications. First exchange: Peers negotiate and  agree on the algorithms and hashes that will be used to secure the IKE  communications.
-   Second exchange: DH  generates public and private values. The peers exchange their public values, and  the result is a shared secret. The shared-secret key is used to generate all the  other encryption and authentication keys. Second exchange: DH  generates public and private values. The peers exchange their public values, and  the result is a shared secret. The shared-secret key is used to generate all the  other encryption and authentication keys.
-   Third exchange: The identity of the  other side is verified. The main outcome of main mode is a secure communications  path for subsequent exchanges between the peers. Third exchange: The identity of the  other side is verified. The main outcome of main mode is a secure communications  path for subsequent exchanges between the peers.
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 IKE Phase 1: Example
IKE Phase 1: Example
  When you are trying to make a secure connection between Host A  and B through the Internet, a secure path (a tunnel) is established between  Router A and Router B. Through the tunnel, the encryption, authentication, and  other protocols are negotiated.
When you are trying to make a secure connection between Host A  and B through the Internet, a secure path (a tunnel) is established between  Router A and Router B. Through the tunnel, the encryption, authentication, and  other protocols are negotiated.
First Exchange: IKE Policy Is Negotiated
 Rather than negotiate each protocol individually, the  protocols are grouped into sets, called IKE policy sets. IKE policy sets are  exchanged during the IKE main mode, first exchange phase. If a policy match is  found between peers, main mode continues. If no match is found, the tunnel is  torn down.
Rather than negotiate each protocol individually, the  protocols are grouped into sets, called IKE policy sets. IKE policy sets are  exchanged during the IKE main mode, first exchange phase. If a policy match is  found between peers, main mode continues. If no match is found, the tunnel is  torn down.
 In Figure 5-16, Router A  sends IKE policy sets 10 and 20 to Router B. Router B compares its set, policy  set 15, with those received from Router A. In this instance, there is a policy  match. Policy set 10 of Router A matches the policy set 15 of Router B.
In Figure 5-16, Router A  sends IKE policy sets 10 and 20 to Router B. Router B compares its set, policy  set 15, with those received from Router A. In this instance, there is a policy  match. Policy set 10 of Router A matches the policy set 15 of Router B.
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 In a point-to-point  application, each end may need only a single IKE policy set to be defined.  However, in a hub-and-spoke environment, the central site may require multiple  IKE policy sets to satisfy all the remote peers.
In a point-to-point  application, each end may need only a single IKE policy set to be defined.  However, in a hub-and-spoke environment, the central site may require multiple  IKE policy sets to satisfy all the remote peers.
Second Exchange: DH Key Exchange
 When the IKE policy is agreed on, including the size of  the prime number to be used for DH, the two peers run the DH key exchange  protocol, as shown in Figure 5-17. The result of  DH will be the creation of a shared secret that is needed by the various  encryption and hashing algorithms upon which IKE and IPsec will ultimately  agree.
When the IKE policy is agreed on, including the size of  the prime number to be used for DH, the two peers run the DH key exchange  protocol, as shown in Figure 5-17. The result of  DH will be the creation of a shared secret that is needed by the various  encryption and hashing algorithms upon which IKE and IPsec will ultimately  agree.
 Several levels of DH key exchanges are available in  Cisco IOS Software:
Several levels of DH key exchanges are available in  Cisco IOS Software:
-   DH Group 1: A key exchange that uses a  768-bit prime number. This group is the usual choice when the encryption  algorithm is DES. DH Group 1: A key exchange that uses a  768-bit prime number. This group is the usual choice when the encryption  algorithm is DES.
-   DH Group 2: A key exchange that uses a  1024-bit prime number. This group is the usual choice when using 3DES for  encryption. DH Group 2: A key exchange that uses a  1024-bit prime number. This group is the usual choice when using 3DES for  encryption.
-   DH Group 5: A key exchange that uses a  1536-bit prime number. DH 5 should be used with AES. DH Group 5: A key exchange that uses a  1536-bit prime number. DH 5 should be used with AES.
-   DH Group 7 (elliptic curve cryptography  [ECC]): A key exchange that generates IPsec keys when the elliptic curve  field is 163 bits. This group was designed to be used with low-powered hosts  such as PDAs. DH Group 7 (elliptic curve cryptography  [ECC]): A key exchange that generates IPsec keys when the elliptic curve  field is 163 bits. This group was designed to be used with low-powered hosts  such as PDAs.
Third Exchange: Authenticate Peer Identity
 When you are conducting business over the Internet, it  is necessary to know who is at the other end of the tunnel. The device on the  other end of the VPN tunnel must be authenticated before the communications path  is considered secure. The last exchange of IKE Phase 1 authenticates the remote  peer, as illustrated in Figure 5-18.
When you are conducting business over the Internet, it  is necessary to know who is at the other end of the tunnel. The device on the  other end of the VPN tunnel must be authenticated before the communications path  is considered secure. The last exchange of IKE Phase 1 authenticates the remote  peer, as illustrated in Figure 5-18.
 There are three data origin  authentication methods:
There are three data origin  authentication methods:
-   PSKs: PSKs are a secret key value that  is entered into each peer manually and is used to authenticate the peer. PSKs: PSKs are a secret key value that  is entered into each peer manually and is used to authenticate the peer.
-   RSA signatures: RSA signatures are the  exchange of digital certificates that is used to authenticate the peers. RSA signatures: RSA signatures are the  exchange of digital certificates that is used to authenticate the peers.
-   RSA encrypted nonces: Nonces are random  numbers that are generated by each peer and are encrypted and then exchanged  between peers. The two nonces are used during the peer-authentication  process. RSA encrypted nonces: Nonces are random  numbers that are generated by each peer and are encrypted and then exchanged  between peers. The two nonces are used during the peer-authentication  process.
 IKE Phase 2
IKE Phase 2
  The purpose of IKE Phase 2 is to negotiate the IPsec security  parameters, as shown in Figure 5-19, that will be  used to secure the IPsec tunnel. IKE Phase 2 performs the following  functions:
The purpose of IKE Phase 2 is to negotiate the IPsec security  parameters, as shown in Figure 5-19, that will be  used to secure the IPsec tunnel. IKE Phase 2 performs the following  functions:
-   Negotiates IPsec security parameters, known as IPsec transform  sets Negotiates IPsec security parameters, known as IPsec transform  sets
-   Establishes IPsec SAs Establishes IPsec SAs
-   Periodically renegotiates IPsec SAs to ensure security Periodically renegotiates IPsec SAs to ensure security
-   Optionally performs an additional DH exchange Optionally performs an additional DH exchange
 IKE Phase 2 has one mode, called quick mode. Quick mode occurs  after IKE has established the secure tunnel in Phase 1. It negotiates a shared  IPsec transform, derives shared-secret keying material that the IPsec security  algorithms will use, and establishes IPsec SAs. Quick mode also exchanges nonces that are used to  generate new shared-secret key material and prevent replay attacks from  generating false SAs.
IKE Phase 2 has one mode, called quick mode. Quick mode occurs  after IKE has established the secure tunnel in Phase 1. It negotiates a shared  IPsec transform, derives shared-secret keying material that the IPsec security  algorithms will use, and establishes IPsec SAs. Quick mode also exchanges nonces that are used to  generate new shared-secret key material and prevent replay attacks from  generating false SAs.
 Quick mode also renegotiates a new IPsec SA when the IPsec SA  lifetime expires. Basically, quick mode refreshes the keying material that  creates the shared-secret key based on the keying material derived from the DH  exchange in Phase 1.
Quick mode also renegotiates a new IPsec SA when the IPsec SA  lifetime expires. Basically, quick mode refreshes the keying material that  creates the shared-secret key based on the keying material derived from the DH  exchange in Phase 1.
 Earlier, the text mentioned Perfect Forward Secrecy (PFS). The  basic principle of PFS is that new keys (shared secrets) cannot be derived from  older keys. The idea is that if keys are compromised, previous and subsequent  keys are secured because they were generated from scratch and not derived.  Therefore, PFS exists when a DH exchange is done at each rekeying interval,  which is preferable, but might not be necessary, instead of deriving the new  keys from the previous keys.
Earlier, the text mentioned Perfect Forward Secrecy (PFS). The  basic principle of PFS is that new keys (shared secrets) cannot be derived from  older keys. The idea is that if keys are compromised, previous and subsequent  keys are secured because they were generated from scratch and not derived.  Therefore, PFS exists when a DH exchange is done at each rekeying interval,  which is preferable, but might not be necessary, instead of deriving the new  keys from the previous keys. 
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