How does SSH protocol version 2 work?
Version 2 works similarly to Version 1. Each host has a host-specific DSA key used for identification. However, when the daemon starts, a server key is not generated. Forward security is provided through a Diffie-Hellman key agreement which results in a shared session key. The remainder of the session is encrypted using a symmetric cipher, Blowfish, 3DES or CAST128 in CBC mode or Arcfour. The client selects the encryption algorithm from those offered by the server. Additionally, session integrity is provided through a cryptographic message authentication code (hmac-sha1 or hmac-md5). Protocol version 2 provides a public key based user authentication method (DSA Authentication) and conventional password authentication.
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