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    <p>Charlie is on the right track, but I want to emphasize some other points. (My comments were written based on an earlier, shorter version of Charlie's answer.) IBE is more a key-management scheme than an approach to encryption, and its approach to key management sweeps the important issues under the rug. Trying to use identity as the foundation is fraught with problems, because no one has a really good solution to verifying identity in electronic applications, whether on the net or in the physical world. Without a good solution to identity, these IBE schemes fall on their face once you stress the identities they rely on.</p> <p>Most of the IBE systems I've seen any technical detail about really devolve to "trust the provider", which doesn't scale and doesn't provide real security when you really care about it. The provider endeavors to to establish identity over the network, and then acts as a trusted third party, holding the encryption keys for everyone. Relying on a trusted third party has many known weaknesses. </p> <p>Modern cryptography is all about searching for ways to not have to rely on the third party. Web of trust is one approach, the main drawback is that it leaves key management to the end users and key management is expensive. Relying on certificate issuers is another approach, but there it's clear that the issuers are the trusted third parties. A few years ago, one of the major issues that all the browsers trusted went bust and was bought out of bankruptcy by a player who wasn't obviously trustworthy, making it clear that the weakness in that scheme is at the root of the certificate chains.</p>
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    1. POIdentity-Based Encryption and Open Source
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    1. CO"Trying to use identity as the foundation is fraught with problems, because no one has a really good solution to verifying identity in electronic applications": Word. +1
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    2. COSadly, SO seems to have made several decisions to optimize to a real quick short answer, even when it requires a long answer. The solution (suggested BY SO) is to save a short answer and then edit.
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