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Records stored electronically can be changedwithout detection. Although this is quite different to the original concept ofassociating identities and keys, it turns out to be much more powerful. The most prominent e-commerce controversy is the easy availability of pornographyon the internet. With 30,000 taxjurisdictions, it is difficult for a vendor to know the tax rate on every item sold.

More important, nameand address need not be verified or even verifiable, so customers within the state canestablish false out-of-state accounts and easily evade taxes.

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Vendors know only her verifier account number andcitizenship, allowing her to purchase anonymously u. Security problems aside, many consumers cannot enjoy the e-commerce opportunities because they have no credit cards. First, as described in section 4, a list of serial numbers associated with the spent coins must be maintained and searched regularly.



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In other countries, this level of anonymity is unacceptable, because it prevents law enforcement agents from observing transactions that might be linked to crime or terrorism. Thisincludes the procedures for determining tax rates, collecting taxes, transferring funds to theappropriate government authority, and proving to an auditor that taxes were paid. 1, Revised 8th june 1999 page 2them for our purposes) to their verification key to remind us of this association. Because she has two verifier accounts, no one candetermine that she is both a software retailer and a u.

If a system cannot provide (at least) the same degree of auditability, it may not meet the demands of users to be protected from fraud[17], or the legal requirements of tax collectors [16,17]. If the important fields within record were signed by the recipient before it was signed by the sender, then neither party could undetectably alter a transaction record. Dividing responsibilities forthese functions among competing notaries and verifiers will capture enough information fortax auditors and law enforcement agents to pursue illegal activities without sacrificing theprivacy of the law-abiding. A digital passport would also be an example of a certificate where thedigital signatures, certificates & electronic commerceversion 1.


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