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The laws of commerce, which were established in a marketplace where sellers andbuyers met face-to-face, cannot be expected to meet the needs of electronic commerce, therapidly expanding use of computer and communications technology in the commercialexchange of products, services, and information. Vendors must register with a government agency. Credit card companies often play the role of "trusted" third parties to transactions, and can keep more detailed records. Commercial competition wouldalso protect privacy because it allows customers to spread records of their transactions amongmultiple independent entities.

Accredited firms must also be financially secure and well-insured againsterror or bankruptcy.

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Let sign(s,x) be the digital signature function that uses the private key s, and verify(p,x) be its easy-to-calculate inverse that uses public key p, so verify(p,sign(s,x))=x. The payment system’s agent must record the serial numbers of all coins that have been spent. Furthermore, the future opportunity is to provide a platform that can move a client along the range from low- to high-function as client sophistication and needs evolve.



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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. A transaction record would consistof this description, plus the electronic signature and verifier account of each party. This time, she declares as publicinformation that she is a software retailer, so she can avoid certain sales taxes. For example, a registering customer provides his name and social security number as private information, and his nationality as public information.

There are a number of concerns here:· If an owner is careless with their signing key they might reveal its value to others;· their computer may not be very secure and their key might hence be stolen withouttheir knowledge even if they have been careful;· the computer might include software that will sign with the user's securely held key,but under direction from some other entity and without the user's knowledge;· the computer might be accessed physically by some person other than the intendeduser, after the user had enabled the signing key;· a user might sign something and then regret this later; they could then invalidate theirown signature by deliberately publishing their secret signing key. No one else, including the vendor, knows his private key. • 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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