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Technology Infrastructure for Electronic Commerce

Technology Infrastructure for Electronic Commerce. Olga Gelbart rosa@seas.gwu.edu THE GEORGE WASHINGTON UNIVERSITY based on Prof. Lance Hoffman’s Lecture on Network Infrastructure for Electronic Commerce. Snapshots of the Electronic Commerce World. Yesterday - EDI

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Technology Infrastructure for Electronic Commerce

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  1. Technology Infrastructure for Electronic Commerce Olga Gelbart rosa@seas.gwu.edu THE GEORGE WASHINGTON UNIVERSITY based on Prof. Lance Hoffman’s Lecture on Network Infrastructure for Electronic Commerce

  2. Snapshots of the Electronic Commerce World • Yesterday - EDI • Today - getting our toes wet, what this course is about • Tomorrow - Metadata, machine understandable information on the Web. • Catalog information • Intellectual property information • Endorsement Information • Privacy information • see www.w3c.org/pics and www.w3c.org/p3p

  3. How Did We Get Here? • Before the Internet • History of Commerce and Money • Elements of payment systems • The Start of the Internet • Predecessor Networks • Timeline of Significant Events • The Internet Today • What is the Internet? • How Does the Internet Work? • Differences from Original Net • Differences from Traditional World Out There • The Internet in the Future

  4. What is the Internet? • On October 24, 1995, the FNC unanimously passed a resolution defining the term Internet. This definition was developed in consultation with members of the internet and intellectual property rights communities. RESOLUTION:The Federal Networking Council (FNC) agrees that the following language reflects our definition of the term "Internet". "Internet" refers to the global information system that -- (i) is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons;(ii) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible protocols; and(iii) provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein. • http://www.fnc.gov/Internet_res.html

  5. The Internet - connections • Computers in the backbone connected by a (T3) data connection (45 megabits/second) • ISP hosts and other powerful computers connect using (T1,Broadband) lines • Leased lines (some businesses) • Modem dial-up connections • Cable modems • ADSL - Asymmetric Digital Subscriber Line

  6. Internet features • Originally ARPAnet • MIT, MITRE, SRI, BBN • Distributed communications even with many failure points • Dissimilar computers exchange info easily • Route around nonfunctioning parts • 4 sites: SRI, UCLA, UCSB, Univ of Utah • Hafner and Lyon, Where Wizards Stay Up Late, Simon & Schuster 1996

  7. Kahn’s Internet PrinciplesR. Kahn, Communications Principles for Operating Systems. Internal BBN memorandum, Jan. 1972. • Each network must stand on its own and no internal changes could be required to connect it to the Internet • If a transmission failed, try again • Simple black boxes (later called “gateways” and “routers” would connect the networks • No global control at operations level

  8. The Internet - development 1962 Licklider, J.C.R., Galactic Network memos Licklider - MIT to ARPA ARPANET and successors: open architecture networking 1970s: universities and other DoD contractors connect packets rather than circuits (note many of the names in the articles were graduate students then) 1975: 100 sites and e-mail is changing how people collaborate Late 1970s: New Packet Switching Protocol: Transfer Control Protocol/Internet Protocol (TCP/IP) 1980: MILNET takes over military traffic 1980s: NSFNet links together NSF researcgers, Internet protocols incorporated into (BSD) Unix, a widespread operating system Late 1980s: NSFNet absorbs original ARPANET (for a US university to get NSF funding for an Internet connection, that connection had to be made available to all qualified users on campus, regardless of discipline 1995: Commercial backbones replace NSFNet backbone Usenet BITNET Commercial Networks: AOL, Compuserve, etc.

  9. Federal Decisions that Shaped the Internet • Agencies shared cost of common infrastructure, e.g., trans-oceanic circuits • CSNET/NSF (Farber) and ARPA (Kahn) shared infrastructure without metering • Acceptable Use Policy - no commercialization. Privately funded augmentation for commercial uses (PSI, UUNET, etc.), thought about as early as 1988 KSG conferences sponsored by NSF • NSF defunded NSF backbone in 1995, redistributing funds to regional networks to buy from now-numerous, private, long-haul networks • NSFNet $200M from 1986-1995

  10. The Internet - Four AspectsLeiner, et al., “A Brief History of the Internet”, http://info.isoc.org/internet/history/brief.html • Technological Evolution • Packet Switching • Scale, Performance, Functionality • Operations and management of a global and complex infrastructure • Social Aspect - Internauts • Commercialization

  11. Internet Development Timeline From “A Brief History of the Internet” by B. Leiner, et al., http://info.isoc.org/internet/history/brief.html

  12. Excerpts fromHobbes’ Internet Timelineby Robert H. Zakonhttp://www.info.isoc.org/guest/zakon/Internet/History/HIT.html • 1957 Sputnik; US forms ARPA • 1962 P Baran, Rand, “On Distributed Communications Networks”, packet switched networks • 1967 Larry Roberts first design paper on ARPAnet • 1969 ARPANet commissioned. First RFC. • 1970 ALOHANet (radio) connected to ARPANet in 1972 • 1971 Ray Tomlinson E-mail, BBN • 1972 Telnet specification (RFC 318) • 1973 File transfer specification (RFC 454) • 1977 Mail specification (RFC 733) • 1979 USENet newsgroups. First MUD. • 1981 CSNet • 1982 DoD standardizes on TCP/IP • 1983 Name server developed at University of Wisconsin; users no longer need to remember exact path to other systems • 1983 Berkeley releases 4.2BSD including TCP/IP • 1984 DNS introduced. Now over 1,000 hosts • 1984 Moderated newsgroups on USENET • 1988 Internet worm affects 6,000 of the 60,000 Internet hosts • 1990 EFF founded by Mitch Kapor • 1991 WWW released by CERN (Tim Berners-Lee, developer) • 1991 PGP released by Phil Zimmerman • 1992 ISOC chartered • 1992 “Surfing the Internet” coined by Jean Armour Polly • 1993 US White House goes online • 1993 Internet Talk Radio • 1994 Can now order pizza from Pizza Hut online • 1994 First Virtual bank open for business • 1995 RealAudio • 1995 Netscape third largest ever NASDAQ IPO share value • 1995 Registration of domain names no longer free • 1996 Communications Decency Act passed, challenged in US • 1997 CDA overturned by Supreme Court

  13. Growth of the Internet From Hobbes’ Internet Timeline at http://info.isoc.org. ...

  14. How Internet Manages Change? • RFC process • W3C process • Now a proliferation of stakeholders • Debates over control of name space • Profits to be made and lost • Commercial vs. Other interests

  15. Trends in Internet Applications • Internet TV (Web TV + VIATV Videophone) • Voice over IP (VoIP) • Internet telephone • Internet dashboard (Alpine GPS, Windows CE in cars) • Wireless (WAP)

  16. Needed in Electronic Commerce • Authentication • Privacy • Message Integrity • Non-repudiation Adapted from Gail Grant

  17. Authentication • Proving identity • Passports • Driver’s licenses • Credit Cards • Doctors’ diplomas Gail Grant

  18. Privacy • Locks • Doors • Perimeter security • Castles Gail Grant

  19. M Y T H

  20. R E A L I T Y

  21. Message Integrity • Wax seals • Tylenol seals • Custom seals • US Mail Gail Grant

  22. Non-Repudiation • Handshake • Notary Public • Signatures • Contacts Gail Grant

  23. Electronic cash policy issues • anonymity • can lead to “perfect” crime • traceability (accountability) • security (no electronic muggings)

  24. Certification Authority Functions • Accept applications for certificates • Verify the identity of the person or organization applying for the certificate • Issue certificates • Revoke/Expire certificates • Provide status information about the certificates that it has issued • But what do the certificates mean? Adapted from Gail Grant

  25. Who Will Be CA’s? • Specialty firms (VeriSign) • Government agencies • Corporations (for employees) • Telecommunication companies • Banks • Internet Service Providers • Value-Added Networks (VAN’s) • Whom to trust? • Hierarchy vs web of trust Gail Grant

  26. Who Sells CA Products and Services? • Atalla Corporation • BBN Corporation • CertCo • Cylink Corporation • Entrust Technologies Inc. • GTE Corporation • IBM • Netscape Communications • VeriSign • Xcert Software Inc. July 1997 Gail Grant

  27. Legal Issues • Legislation • Responsibilities • Liability • International Usage • Certification Practice Statements

  28. Business Issues for CAs • Business Models • Risks • Costs • In-House vs Out-Sourcing • Operational Considerations • Liability

  29. Some Problems • Untrusted computer systems • Not all persons are trustable • Law not clear • Policy not clear • Sovereignty challenged: • Cryptography policy • Anonymity • Confidentiality

  30. 25300 Untrusted Computer Systems (then)Malware Example: The Internet WormShut down 6,000 machines, Nov 1988 • Tried three techniques in parallel to spread • Guess passwords • Exploit a bug in the finger program • Use a trapdoor in the sendmail program • Effects • serious degradation in performance of affected machines • affected machines had to be shut down or disconnected from the internet • Criminal justice • Perpetrator convicted January 1990 under 1986Computer Fraud and Abuse Act; sentenced to3 years probation, $10,000 fine, and 400 hours of community service

  31. Web-Based Computer Systems SURPRISE DISCLOSURES OF PERSONAL INFORMATION, AND PROGRAM LAUNCHES • Cookies • JAVA (Applet security issues) • Microsoft • Word macro viruses • ACTIVE-X • QUICKEN surprise bank transfer • Web-based viruses • Browser vulnerabilities (recent Netscape 4.x -- have to disable Java!) • A final surprise: monitoring tools (e.g., SATAN) also used by the enemy

  32. Who are “trustworthy” persons? • With “everyone” connected by networks, how do you know who to trust? • Trusted Third Parties • Certifying Authorities • Digital Signatures • Strong, Trustable Encryption • Distributed Architecture: Smart Cards

  33. LAW OF THE NET • Whose Law? Internet is not a monarchy, democracy, republic, or dictatorship; rules and formalities are nonexistent • Jurisdiction, treaties, harmonization of definitions • CDA Example, Tennessee • Enforcement • Elected officials and their designees? • Internet Service Providers? • Vigilantes? • Anti-spam page: http://www.dgl.com/docs/antispam.html • Agents Launched by Any of the Above? • Cancelbots • Netiquette?

  34. 18071 Sovereignty Case study: Cryptography Policy Government stalling, an impediment to progress, or cautious reasoning to avoid chaos? • Constitutional issues- Law Enforcement- National Security • Privacy issues • Export policies • Jurisdictional "turf" issues

  35. Issues in Cryptography PolicyPrivacy Issues When should government have right tomonitor telecommunications? What safeguards prevent abuse ofinformation obtained with taps? Can a free society toleratehidden data with no accountability?

  36. Clipper Chip Solution (Clipper I) (adapted from White House briefing) * provides successor for DES* provides law enforcement solution WARRANT 2 Key Escrow Holders 1 Law Enforcement Agency Court Commerce Dept., NISTTreasury Dept., Automated Systems Div Clipper Chip Encryption device

  37. THE FOUR HORSEMEN OF THE APOCALYPSE (CYPHERPUNKS VERSION) • nuclear terrorists • child pornographers • money launderers • drug dealers APPLICATION OF BLIND SIGNATURE TO A REAL CRIMEB. von Solms and D. Naccache, Computers and Security 11, 6 (1992)reprinted in Hoffman, L. (Ed.), Building in Big Brother, Springer-Verlag, 1995

  38. 19111 WHAT IF UNBREAKABLE ENCRYPTION LEADS TO THIS?How many times per year is acceptable?

  39. 19892 NAS/NRC CRYPTO POLICY REPORT HIGHLIGHTS Commercial use: Should promote widespreadcommercial use of technologies that canprevent unauthorized access to electronic info Exportation: Should allow export of DES toprovide an acceptable level of security Escrow: Premature (Key recovery = current proposal) Classified material: The debate on cryptopolicy should be open and does not requireknowledge of classified material Total preliminary report at http://www.nap.edu/nap/online/titleindex.html#c Cryptography's Role in Securing the Information Society, 1996,National Academy Press, 2101 Constitution Ave. NW, Box 285, Washington DC 20055, (800) 624-6242

  40. 19870 CURRENT ENCRYPTION LEGISLATIONHighlights: Full Text at http://www.cdt.org/crypto/ • SAFE (HR 695) Reps. Goodlatte (R-VA), Eshoo (D-CA) • Pro-CODE (S 377) • Sen. Leahy (D-VT), Burns (R-CO), Wyden (D-OR) • Audio and photo transcript and lots of information from 3/19/97 hearing at www.democracy.net/archive/03191997 • Commonalities between SAFE and Pro-CODE • Prohibit government from imposing mandatory key escrow • No export license required for public domain or • generally available encryption software • (Draft Clinton administration legislation [no warrant])

  41. Building a Home Page to Sell Something • Just Building a Home Page • Now Making It Sell Something • What to Sell?

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