According to recent reports the compact encryption code used by Skype to protect its network has been uncovered by cryptography expert Sean O'Neil.

O'Neil on the contrary believes that the code has already been exploited by Skype spammers.

Skype's encryption code is supposedly hovers around a cipher called RC4,  that is employed by the VoIP service provider to offer security to its clients and  at the same maintain a distance from servers which might be attacked by hackers and spammers, as well as third parties who might create their own IM clients using Skype's network.

Sean O'Neil through a statement said, “Skype enjoyed selling the world security by obscurity. We must admit really good obscurity. I mean, really good obscurity. So good that almost no one has been able to reverse engineer it out of the numerous Skype binaries.”

Meanwhile the cryptographer has offered a link to C Library which is considered to be a clone of "obfuscated Skype RC4 key expansion algorithm" used by Skype to secure its network.