Infrastructure for Electronic Commerce

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:

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

How Did We Get Here?:

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

What is the Internet?:

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

The Internet - connections:

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

Internet features:

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

Kahn’s Internet Principles R. Kahn, Communications Principles for Operating Systems. Internal BBN memorandum, Jan. 1972. :

Kahn’s Internet Principles R. 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

The Internet - development:

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.

Federal Decisions that Shaped the Internet:

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

The Internet - Four Aspects Leiner, et al., “A Brief History of the Internet”, http://info.isoc.org/internet/history/brief.html :

The Internet - Four Aspects Leiner, 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

Internet Development Timeline:

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

Excerpts from Hobbes’ Internet Timeline by Robert H. Zakon http://www.info.isoc.org/guest/zakon/Internet/History/HIT.html:

Excerpts from Hobbes’ Internet Timeline by Robert H. Zakon http://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

Growth of the Internet:

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

How Internet Manages Change?:

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

Trends in Internet Applications:

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)

Needed in Electronic Commerce:

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

Authentication:

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

Privacy:

Privacy Locks Doors Perimeter security Castles Gail Grant

Slide 19:

M Y T H

Slide 20:

R E A L I T Y

Message Integrity:

Gail Grant Message Integrity Wax seals Tylenol seals Custom seals US Mail

Non-Repudiation:

Gail Grant Non-Repudiation Handshake Notary Public Signatures Contacts

Electronic cash policy issues:

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

Certification Authority Functions:

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

Who Will Be CA’s?:

Gail Grant 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

Who Sells CA Products and Services?:

July 1997 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. Gail Grant

Legal Issues:

Legal Issues Legislation Responsibilities Liability International Usage Certification Practice Statements

Business Issues for CAs:

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

Some Problems:

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

Untrusted Computer Systems (then) Malware Example: The Internet Worm Shut down 6,000 machines, Nov 1988:

Untrusted Computer Systems (then) Malware Example: The Internet Worm Shut 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 1986 Computer Fraud and Abuse Act; sentenced to 3 years probation, $10,000 fine, and 400 hours of community service 25300

Web-Based Computer Systems SURPRISE DISCLOSURES OF PERSONAL INFORMATION, AND PROGRAM LAUNCHES:

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

Who are “trustworthy” persons? :

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

LAW OF THE NET:

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?

Sovereignty Case study: Cryptography Policy :

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 18071

Issues in Cryptography Policy Privacy Issues:

Issues in Cryptography Policy Privacy Issues When should government have right to monitor telecommunications? What safeguards prevent abuse of information obtained with taps? Can a free society tolerate hidden data with no accountability?

Slide 36:

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

THE FOUR HORSEMEN OF THE APOCALYPSE (CYPHERPUNKS VERSION):

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

WHAT IF UNBREAKABLE ENCRYPTION LEADS TO THIS? How many times per year is acceptable?:

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

NAS/NRC CRYPTO POLICY REPORT HIGHLIGHTS:

NAS/NRC CRYPTO POLICY REPORT HIGHLIGHTS Commercial use : Should promote widespread commercial use of technologies that can prevent unauthorized access to electronic info Exportation : Should allow export of DES to provide an acceptable level of security Escrow : Premature (Key recovery = current proposal) Classified material : The debate on crypto policy should be open and does not require knowledge 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 19892

CURRENT ENCRYPTION LEGISLATION Highlights: Full Text at http://www.cdt.org/crypto/ :

CURRENT ENCRYPTION LEGISLATION Highlights: 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]) 19870

Building a Home Page to Sell Something:

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