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The federal government shouldsupport voluntary accreditation of verifiers and notaries. For identity certificates there are subtle problems of what constitutes identity and how thiscan be established. In particular we have to be sure that thehardware and software does exactly and only what we expect of it, and that it has notbeen modified after such a determination has been made. • Privacy protection: To protect privacy and combat identity theft in e-commerce, consumers must be able to send funds without revealing any personal information2to the recipient, and receive funds without revealing information (other than an account number) to the sender.

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This is not always effective because theresulting record may not be trustworthy or available when needed. Consider a user with a paybook containing n coins, i. This trusted notary chip would apply its digital signature to the record being notarized and associated timestamp, thereby proving that the trusted entity saw the record in this form. ), The merchant's transaction-system location (whether on merchant premises or service provider environment), and the financial institution's location.



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The values of k and vk are placed on open display, perhaps on a web site. Finally, the paper is summarized in section 6. Second, the "timestamp information" field could include unpredictable and externally verifiable information, like the current temperature or current stock market values. Credentials couldinclude a buyer's identity or just a credit rating.

It is possible to "hash" the record so the notarycannot understand the record, which protects the privacy of all parties. It shouldeven be impossible to determine whether a particular person has engaged in anytransactions at all. There are many viable approaches to establishing a useful federal role. By ensuring that any algorithms used are subject to publication and openinternational review we can help to ensure that such weaknesses are identified andeliminated.

In practice, most trust relationships are made locally and the reason for this is evidentsince trust is a property of relationships between people and it is simply not sensible totrust someone who is completely unknown. For example, commercial vendors must show records tostockholders and tax auditors. All parties in the transaction agree not to record transaction t. Another important property of the pay cash system is that a payment of any amount can be made without sending multiple coins, and without requiring change.

The transaction server should also contain a component to process digital certificates from an organization using certificate-authority software or follow-on security technologies. X records false information t', but some parties record t.

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