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When an intermediate or the final node (intended recepient) wants to send an error message they create an error packet which contains the (1) error message; (2) padding to conceal length and (3) HMAC that authenticates the packet using key um. This erring node then generates a key ammag that is used to generate a pseudo-random stream which in turn is applied ...


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As far as I understand (but I did not double check the code) the answer is yes. The error messages in the onion seem to be encrypted in a way so that only the origanal sender of the onion can decrypt it. Since the error also had to be padded to keep the error onion of constant length the key derivation scheme for sending onions is kind of reused. In that ...


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