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[[Dan Boneh]] and [[Matthew K. Franklin]] defined a set of four algorithms that form a complete IBE system:
* '''Setup''': This algorithm is run by the PKG one time for creating the whole IBE environment. The master key is kept secret and used to derive users' private keys, while the system parameters are made public. It accepts a [[security parameter]] <math>\textstyle k</math> (i.e. binary length of key material) and outputs:
# A set <math>\textstyle \mathcal{P}</math> of system parameters, including the
# a master key <math>\textstyle K_m</math>.
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