Bluetooth uses the SAFER+ algorithm for authentication and key generation. The E0 stream cipher is used for encrypting packets. This makes eavesdropping on Bluetooth-enabled devices more difficult.

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Pairing
Pairs of devices may establish a trusted relationship by learning (by user input) a shared secret known as a “passkey”. A device that wants to communicate only with a trusted device can cryptographically authenticate the identity of the other device. Trusted devices may also encrypt the data that they exchange over the air so that […]

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A Bluetooth device playing the role of the “master” can communicate with up to 7 devices playing the role of the “slave”. This network of “group of up to 8 devices” (1 master + 7 slaves) is called a piconet. A piconet is an ad-hoc computer network of devices using Bluetooth technology protocols to allow […]

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* Wireless control of and communication between a cell phone and a hands free headset or car kit. This is the most popular use.
* Wireless networking between PCs in a confined space and where little bandwidth is required.
* Wireless communications with PC input devices such as mouses and keyboards and output devices such as printers.
* […]

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