Scenario
A SOAP web service provides an interface for retrieving documents and data. Security is paramount.
WS-Security is used and both the client and server encrypt and sign the entire SOAP envelope.
Questions
Should the private key used for signing be compiled into the application and stored on the device or should it provided by the server using a key exchange protocol (perhaps after authentication of the user)?
Should the private key for decryption be stored on the device or provided by the server?
Is it realistic to have a unique key for each file that is to be decrypted by the server (if uploading from client) or decrypted by the client (if downloading from server)?
Just a couple suggestions:
-You should consider symmetric keys embedded into anything outside your server as public due to reverse engineering (i.e. don't bother even encrypting if the key is out in the wild).
-You should use a per-session symmetric key generated by a secure RNG on the client, and transmitted to the server encrypted with the global asymmetric public key. Private keys have a shelf-life.
-You can use the session key for all files/streams transferred in that session, but you should use a unique nonce to salt the symmetric-key encryption for each file. Depending on the encryption mode, using the same key/nonce with more than one stream can leave you vulnerable to XOR'ing the two streams and recovering a mashed-together but unencrypted result.