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Thismight be a credit card company. Market dynamics—which segments will demand commerce services now and in the future? Business modelwhat are the primary business drivers that are directing the host into the electronic-commerce hosting business? What business does the host want to be in? There are some general points about business models that apply regardless of the host's service model, including the following: Host's long-term electronic commerce strategy and position on future growth of its customer base—where do i want to be two, five, even ten years from now? Host's existing business relationship with segment—will this be a totally new offering to unfamiliar customers? Or, will this be a new offering to a captured base of customers? Business-to-business, business-to-consumer, or both—will the business customers be selling to other businesses or consumers? However, the host faces a key decision point in setting up a hosting environment for electronic commerce around a critical distinction in the marketplace.

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For example, the market for inexpensive digital products, such as individual magazine articles or digitized songs, has been slow to emerge in part because the cost of transferring a payment can exceed the cost of the product itself. In such cases the certifyingbody will normally be the professional body that regulates the profession or the activity inquestion. As anexample, we might only trust keys that we have obtained directly from people we knowand trust.



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· A system of voluntary accreditation for verifiers should be established. The first innovation of the system is to digitally sign all transaction records, and to integrate this signature into the payment system itself to create tamper-proof records. At first sight avoiding a requirement for the use of specified signature mechanisms mightappear to create market fragmentation. This last key isoften referred to as the root key and another way has to be found to ensure that it istrustworthy (this will be discussed later).

Digitalsignatures are hence being used to implement and extend an existing set of trustrelationships rather than to introduce something entirely new. Once arecord is processed, subsequent changes are detectable by an auditor, even if all parties tothe transaction and the notary cooperate in the falsification. In practice, however, this seems to be based on a misinterpretation of whatthese organisations provide since the trust relationships involved are only superficiallythree party ones. Many current laws and regulations require written records, written signatures, orwritten timestamps.

Government also keeps track of the verifier and notary accountsheld by each electronic vendor and any other parties subject to audit. All parties agree to delay recording a transaction. He can now purchase software without showing identification, including software with export control restrictions. Commercial competition wouldalso protect privacy because it allows customers to spread records of their transactions amongmultiple independent entities.

In particular the improvements that result in considering certificates as empowermentmechanisms for digital signatures provide for direct links between keys and permissionswithout the complications that are involved in links to names and identities.

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