ID-based encryption, or identity-based encryption (IBE), is an important primitive of ID-based cryptography. As such it is a type of public-key encryption in which the public key of a user is some unique information about the identity of the user (e.g. a user's email address). This means that a sender who has access to the public parameters of the system can encrypt a message using e.g. the text-value of the receiver's name or email address as a key. The receiver obtains its decryption key from a central authority, which needs to be trusted as it generates secret keys for every user. ID-based encryption was proposed by Adi Shamir in 1984. He was however only able to give an instantiation of identity-based signatures. Identity-based encryption remained an open problem for many years. The pairing-based Boneh–Franklin scheme and Cocks's encryption scheme based on quadratic residues both solved the IBE problem in 2001. Identity-based systems allow any party to generate a public key from a known identity value such as an ASCII string. A trusted third party, called the Private Key Generator (PKG), generates the corresponding private keys. To operate, the PKG first publishes a master public key, and retains the corresponding master private key (referred to as master key). Given the master public key, any party can compute a public key corresponding to the identity by combining the master public key with the identity value. To obtain a corresponding private key, the party authorized to use the identity ID contacts the PKG, which uses the master private key to generate the private key for identity ID. As a result, parties may encrypt messages (or verify signatures) with no prior distribution of keys between individual participants. This is extremely useful in cases where pre-distribution of authenticated keys is inconvenient or infeasible due to technical restraints. However, to decrypt or sign messages, the authorized user must obtain the appropriate private key from the PKG.

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