Method and system for deriving an encryption key using joint randomness not shared by others

The present invention relates to a method and system for deriving an encryption key using JRNSO (joint randomness not shared by others). Communicating entities are also generate JRNSO bits from a channel impulse response (CIR) estimate, JRNSO bits are used in the generation of encryption keys. The authentication type can be either pre-shared key system can be IEEE 802.1x. In the IEEE 802.1x system, a master key, PMK (pairwise master key) or (pairwise transient key) PTK may be generated using the JRNSO bits. Encryption keys may be generated by using a Diffie-Hellman key derivation algorithm.