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Malleability is a physical property of matter, signifying its capability of deformation, especially by hammering or rolling. Malleability is an important issue in for example stamping and form pressing materials such as metals and plastics.
Malleable is a term used in the analyses of cryptographic algorithms:
Have a ciphertext C, and a plaintext P. C = E(P) meaning: C is the encrypted plaintext P.
With a malleable encryption algorithm it is possible to generate a C1 = f(C) so that P1 = f'(P) with arbitrary (but known) functions f and f'.