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This is not to say that identity information is unimportant in electronic commerce. Public-key encryptionoperations are executed transparently by software. Section 2 briefly addresses the state of payment systems today. When a user adds or removes money from a pay cash account, she usually reveals personal information.

Some transactions also require parties to present credentials. Verifiers can provide trustworthy credentials, and notaries caninsure that transaction records are complete and unaltered. The payment already includes a transaction record that has been digitally signed by the sender. The personreceiving and using this certificate might also want to know that the named keyholder hassole control over the corresponding private signing key, but in general we as issuer of theid certificate have no control over the protection and use of that private key and cantherefore make no such assertion.

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The security problem is even more challenging because a strategy that is effective in one country may be inappropriate or even illegal in another. This is a use ofa certificate for carrying a guarantee. Such a key may already be available in which case the signature can beverified immediately. Moreover, if a user has a paybook with n coins p(n,p) = {n, p, z}, it is easy to generate a paybook with less money, such as {n-1, p, g(z)} which has n-1 coins.



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Second, it must be possible to check credentials of other parties. For example, doesthat online pharmacy really have licensed pharmacists on staff?Fraud would be more difficult if a unique identifier were embedded in each computer. If a card is provided, theclient will be expected to sign the card but the company will not seek independentverification that this signature is truly that of the client in question. The insurer guarantees that even if a notary or verifier business fails, theinformation it holds will be maintained for a certain number of years.

If, however, the verification key is provided in the form of acertificate then the signature on the certificate must also be checked. This type of certificateis much subtler than might first be imagined and will be considered in more detail later. The transaction server also must manage the payment process, from communicating with the consumer to drafts with the financial institution. Thus, for users in nations where the policy favors anonymity, the technical challenge is to prevent the operator of the system from identifying both parties in any funds transfer.

In some applications, these parties need not be distinct – in the lastexample above the issuing party and the verifying party are the same (although this mightnot always be true in such uses). (Today, a minor can lie about age withoutdetection. Now is the time to devise policies that are both technically and economicallyappropriate for e-commerce - before today's practices are completely entrenched. It shouldeven be impossible to determine whether a particular person has engaged in anytransactions at all.

Second, it must be possible to check credentials of other parties. Australia prohibited australian websites from displaying material inappropriate for minors, thereby denying material to adultsas well. Conclusionsdigital signatures have potential uses in electronic commerce but attempts to applythem in ways that mirror written signatures are unlikely to be effective because thisanalogy is misleading.

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