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Efficient schemes for key predistribution and shared-key discovery play a vital role in security and efficiency of pairwise key establishment in sensor networks. In this paper, we propose a scheme for key predistribution using hash-chain and subsequent shared-key discovery. We show potential active attacks on sensor networks due to key predistribution which can have severer consequences as compared to attacks described in existing proposals. We also show that as compared to the existing schemes, our scheme is more resilient to these active attacks.