This document describes the first version of private networks (PN) featured in IPFS.
Only pre-shared key (PSK) functionality is available for the first implementation, as the Public Key Infrastructure approach is much more complex and requires more technical preparation.
It was implemented as an additional encryption layer before any IPFS traffic and is designed to leak the absolute minimum of information on its own. All traffic leaving the node inside a PN is encrypted, and there is no characteristic handshake.