My then-colleague Seth Schoen - EFF's staff technologist, the most technically sophisticated person to have been briefed on the technology without signing an NDA - made several pointed critiques of Palladium:
https://web.archive.org/web/20020802145913/http://vitanuova.loyalty.org/2002-07-05.html
And suggested a hypothetical way to make sure it only served computer users, and not corporations or governments who wanted to control them:
https://www.linuxjournal.com/article/7055
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But his most salient concern was this: "what if malware gets into the trusted computing chip?"
The point of trusted computing was to create a nub of certainty, a benevolent God whose answers to your questions could always be trusted. The output from a trusted computing element would be ground truth, axiomatic, trusted without question. By having a reliable external observer of your computer and its processes, you could always tell whether you were in the Matrix or in the world.
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