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As Internet-based commerce becomes commonplace, it is important that we examine the systems used for these financial transactions. Underlying each system is a set of assumptions, particularly about trust and risk. To evaluate systems, and thus to determine one's own risks, requires an understanding of the dimensions of trust: security, privacy, and reliability.

In this book Jean Camp focuses on two major yet frequently overlooked issues in the design of Internet commerce systems--trust and risk. Trust and risk are closely linked. The level of risk can be determined by looking at who trusts whom in Internet commerce transactions. Who will pay, in terms of money and data, if trust is misplaced? When the inevitable early failures occur, who will be at risk? Who is "liable" when there is a trusted third party? Why is it necessary to trust this party? What exactly is this party trusted to do? To answer such questions requires an understanding of security, record-keeping, privacy, and reliability.

The author's goal is twofold: first, to provide information on trust and risk to businesses that are developing electronic commerce systems; and second, to help consumers understand the risks in using the Internet for purchases and show them how to protect themselves. Rather than propose a single model of an Internet commerce system, the author provides the information and insights needed by merchants and consumers as they develop the Internet for commerce.

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CONTENTS

Preface = ⅸ

Introduction = 1

1 The Internet = 5

 What Is the Internet? = 5

 What Are Its Origins? = 6

 Where Is the Internet? = 9

 Who Is on the Internet? = 14

 How Does the Internet Work? = 18

 Layers of Protocol and Stages of a Transaction = 30

 Commercial Transactions = 31

 Evaluating Information On-line = 36

 Pricing and Quality in Internet Commerce = 40

 Convergence and the Internet = 43

2 Money = 47

 Functions of Money = 47

 Digital Information Money = 51

 Money Vendors = 54

3 Basic Cryptography = 57

 Private Key Cryptography = 60

 Public Key Cryptography = 61

 Hash Functions = 63

4 Security Goals = 65

 Threats to Electronic Information Systems = 66

 Confidentiality = 68

 Availability = 70

 Scalability = 72

 Authentication = 73

 Integrity = 75

 Nonrepudiation = 76

5 Key Management Is Trust Management = 79

 Symmetric Key Management = 80

 Asymmetric Key Management = 83

 Digital Certificates = 83

 Key Length = 92

 Pseudonymity and Anonymity = 93

 Microdata Security = 95

6 Privacy Perspectives = 99

 Law Enforcement : Trust Us = 101

 The Business Community : Trust Me = 105

 System Designers : Ignore Me = 107

 Social Critics : Trust for the Common Good = 108

 Europeans : Limit Trust = 110

7 Privacy in Law, Privacy in Practice = 115

 State Law = 117

 Federal Law = 121

 Privacy and Information Technology = 130

8 Data Reporting : Trusting the Government = 145

 Required Information Reporting = 145

 Reporting Examples = 152

 Reconsidering Requirements = 157

 Cryptography Policy = 163

 Disclosure Summary = 166

9 Transactions = 169

 Reliability = 170

 Scalability = 174

 Divisibility = 175

 Interoperability = 176

 Open Systems, Standards, and Proteocols = 179

10 Examination of Internet Commerce Systems = 183

 Distincions among Commerce Systems = 184

 Analyses of Various Systems = 186

 Example Analyses = 190

 Credit Cards : A Notational System = 190

 Cash : A Token System = 199

 Summary = 204

11 Internet Currencies = 207

 Notational Currencies = 207

 First Virtual = 207

 Secure Sockets Layer = 215

 Secure Electronic Transaction = 220

 Token Currencies = 230

 Digicash = 232

 MicroMint = 237

 Millicent = 246

 Summary = 250

12 The Coming Collapse in Internet Commerce = 255

References = 263

Index = 275