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How do you prevent other processes (or other apps on mobile) from connecting to the service?

A malicious game on my phone can't ssh to my server if I do normal authentication, but with this IP/WG authentication it can...

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You can configure ACLs. By default devices that aren’t tagged with an ACL tag are available to other devices authenticated by the same user. If you tag a device, you have to write explicit ACLs to permit access from other users/devices.

How does this solve the problem of a malicious process inside the whitelisted device.

That would of course be beyond the scope of the network layer itself.

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