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6Records must be generated for each transaction. Not only do the laws vary from nation to nation, but in the us, policies have changed to address new security concerns in the wake of the september 11, 2001 attacks. The payment system facilitates the transfers, and makes it impossible for users to counterfeit coins, but the payment system never knows who owns a digital coin until an owner wants to redeem that electronic coin for real cash. In order for this to happen, the electronic-commerce system must recreate or utilize existing data and business processes.

It should also be illegalfor customers to provide inaccurate information to a verifier.

Second, because they are not a party to any contract governing its use, they have no wayof knowing whether this places any constraints on its operation or provides forcompensation if things go wrong. Auditors5must depend entirely on transaction records. Thissystem includes verifiers and notaries. It is possible to "hash" the record so the notarycannot understand the record, which protects the privacy of all parties.



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Moreover,since we don’t know them, they can claim to be anyone they please and we will be nonethe wiser (unless they are unlucky and choose someone we know). The most prominent e-commerce controversy is the easy availability of pornographyon the internet. This is the responsibility of the notary. This time, she declares as publicinformation that she is a software retailer, so she can avoid certain sales taxes.

In most current identity certificates, a key will be linked to a personor an object by using a name – a string of characters – and this involves many pitfalls. This type of certificateis much subtler than might first be imagined and will be considered in more detail later. Easy-to-use web site–construction tools help nontechnical businesses create web sites and catalog pages. A party that is subject to audits then notarizes its copy in a manner that allows subsequent audits.

Third party digital signature certification authoritiessome governments are advocating the concept of licensed ‘third party digital signaturecertification authorities’ – certification authorities (ca) for short – as essential enablersfor electronic commerce. Its function is no more or less than providing a virtual store. Finally, the customer informs the auditor of all of its verifier accounts, and respective relationships with notaries. For example, a ‘point of sale’ terminal may incorporate mastersignature verification keys for the credit card companies whose cards it recognises.

· When an information product is purchased via electronic commerce, the official location of thebuyer should be based on static characteristics of the buyer, like the buyer's tax home.

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