in reply to Serial Generation and Validation

If you can GENERATE something, so can anybody else. Then there is no security. There are some truely random (apparently) events in the universe. Milliseconds between butterfly wing flaps, number of photons out of a lightbulb per second, rolls of the dice, and such. If you had ENOUGH truly random numbers, then just use an exclusive-or for your encryption. Nothing is more secure, or easier, or EXPENSIVE. You also have to transfer the key beforehand.