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Do YubiKeys decrypt GPG or SSH/SFTP data directly within themselves? If so, would that cause a bottleneck? Do YubiKeys have accelerated AES hardware that does most of the heavy lifting of decryption?

Also, YubiKeys aren't needed when encrypting to another person's key, correct?

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The YubiKey only does public key cryptography, not symmetric cryptography.

In each of those cases, the YubiKey is used to encrypt (or decrypt) a symmetric key, which is then used by a symmetric cipher such as AES. The YubiKey is not involved at all, after this key is made available. Symmetric cryptography is performed by the device (computer, phone, etc).

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