Which attacks are possible concerning my security layer concept?

Question

Despite all the advices to use SSL/https/etc. I decided to implement my own security layer on top of http for my application... The concept works as follows:

Answer 1

I'm not a crypto or security expert by any means, but I do see one serious flaw:

There is no way the client can know that it is running the right crypto code. With SSL/TLS there is an agreed upon standard that both your browser vendor and the server software vendor have implemented. You do not need to tell the browser how SSL works, it comes built in, and you can trust that it works correctly and safely. But, in your case, the browser only learns about the correct protocol by receiving plain-text JavaScript from your server.

This means that you can never trust that the client is actually running the correct crypto code. Any man-in-the-middle could deliver JavaScript that behaves identically to the script you normally serve, except that it sends all the decrypted messages to the attacker's servers. And there's no way for the client to protect against this.

That's the biggest flaw, and I suspect it's a fatal flaw for your solution. I don't see a way around this. As long as your system relies on delivering your crypto code to the client, you'll always be susceptible to man-in-the-middle attacks. Unless, of course, you delivered that code over SSL :)