Peer-to-peer secure, private, remote backup

How do you share diskspace for backups with your peers without increasing your vulnerability for break-ins and how do you host your peer's sensitive data without being able to access it yourself?

The short version: encrypted image-files on sshfs.

EDIT: 2012-08-14, the development of cryptmount has made sudo unecessary in this case. See free-secure-online-backup for info on how to use cryptmount.

The outline of the process:

Let's say user Lisa (with username 'lisa') at host foo is the client, bar is the server that hosts the backup. lisa has a login-account at bar.

$ sshfs -o allow_root bar: mnt/bar
$ sudo losetup -e /dev/loop0 mnt/bar/sensitive-backup.img
$ sudo mount /dev/loop0 mnt/backup

Lisa copies her files to mnt/backup and then unmount like this:

$ sudo umount mnt/backup
$ sudo losetup -d /dev/loop0
$ fusermount -u mnt/bar

This procedure is secured against all evil powers outside of Lisas computer, including root at foo and eves-dropper of the network connection between foo and bar. (As always, Lisa cannot secure her sensitive data against root at foo, she'd better be root at foo).

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