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e-Commerce & Digital
Signatures
Presentation by:
Naveen Jakhar, ITS
Topics to be Covered in this Presentation:
2
 What is Digital Signature ?
 How does digital signature work?
 Advantages and Shortcomings of Digital Signatures
 What is e-Commerce
 How does e-commerce work?
Advantages and Disadvantages of e-commerce
Introduction to Digital Signatures:
3
 Digital Signature is a type of asymmetric cryptography used to simulate
the security properties of a signature in digital form, rather than written
form
 Digital signature schemes normally give two algorithms, one for signing
which involves the user's secret or private key, and one for verifying
signatures which involves the user's public key
 The output of the signature process is called the "digital signature.“
Introduction to Digital Signatures:
4
 Digital Signature is an electronic signature that can be used to
authenticate the identity of the sender of a message or the signer of a
document, and possibly to ensure that the original content of the
message or document that has been sent is unchanged
Digital signatures are easily transportable, cannot be imitated by
someone else, and can be automatically time-stamped. The ability to
ensure that the original signed message arrived means that the sender
cannot easily repudiate it later
How Digital Signature works?
5
 The use of digital signatures usually involves two processes, one
performed by the signer and the other by the receiver of the digital
signature:
Digital signature creation uses a hash result derived from and unique to
both the signed message and a given private key. For the hash result to be
secure, there must be only a negligible possibility that the same digital
signature could be created by the combination of any other message or
private key
How Digital Signature works?
6
 Digital signature verification is the process of checking the digital
signature by reference to the original message and a given public key,
thereby determining whether the digital signature was created for that
same message using the private key that corresponds to the referenced
public key
Illustration using an example:
7
Assume you were going to send the draft of a contract to your lawyer in another
town. You want to give your lawyer the assurance that it was unchanged from
what you sent and that it is really from you
1.You copy-and-paste the contract (it's a short one!) into an e-mail note
2.Using special software, you obtain a message hash (mathematical summary) of
the contract.
3.You then use a private key that you have previously obtained from a public-
private key authority to encrypt the hash
4.The encrypted hash becomes your digital signature of the message. (Note that it
will be different each time you send a message)
Illustration using an example:
8
At the other end, your lawyer receives the message.
1.To make sure it's intact and from you, your lawyer makes a hash of the
received message
2.Your lawyer then uses your public key to decrypt the message hash or
summary
3.If the hashes match, the received message is valid
Advantages of Digital Signatures:
10
Authentication : Digital signatures can be used to authenticate the
source of messages. When ownership of a digital signature secret
key is bound to a specific user, a valid signature shows that the
message was sent by that user
Integrity : if a message is digitally signed, any change in the
message will invalidate the signature. Furthermore, there is no
efficient way to modify a message and its signature to produce a
new message with a valid signature, because this is still considered
to be computationally infeasible by most cryptographic hash
functions
Shortcomings of Digital Signatures:
11
Non-repudiation:
In a cryptographic context, the word repudiation refers to the act of
disclaiming responsibility for a message. A message's recipient may insist
the sender attach a signature in order to make later repudiation more
difficult, since the recipient can show the signed message to a third party
(eg, a court) to reinforce a claim as to its signatories and integrity.
However, loss of control over a user's private key will mean that all digital
signatures using that key, and so ostensibly 'from' that user, are suspect.
Nonetheless, a user cannot repudiate a signed message without
repudiating their signature key
e-Commerce:
12
 e-Commerce is the trading or facilitation of trading in products or
services using computer networks, such as the Internet
 e-Commerce stands for Electronic Commerce
 1979: Michael Aldrich demonstrates the first online
shopping system
 Modern electronic commerce typically uses the World Wide Web
for at least one part of the transaction's life cycle
e-Commerce:
13

Why e-Commerce?
14
 Low Entry Cost
 Reduces Transaction Costs
 Access to Global Market
 Secure Market Share
Why e-Commerce?
15
 Low Entry Cost
 Reduces Transaction Costs
 Access to Global Market
 Secure Market Share
Why e-Commerce?
16
 Low Entry Cost
 Reduces Transaction Costs
 Access to Global Market
 Secure Market Share
Why e-Commerce?
17
 Low Entry Cost
 Reduces Transaction Costs
 Access to Global Market
 Secure Market Share
Different Models of e-commerce
• Business to Business
• Business to Consumer
• Consumer to Business
• Consumer to Consumer
18
Benefits of e-Commerce?
19
 No Checkout queues
 Reduced prices
 You can shop anywhere in the world
 Easy access 24*7
 Wide selection to cater for all consumers
Disadvantages of e-Commerce?
20
 Not everyone is connected to internet
 No Physical inspection of the products
 Possibility of online transactions fraud
Government Initiatives
• Better broadband connectivity for tier 2 and tier 3 cities
• Ministry of urban development has proposed a smart national common
mobility card for travelling as well as retail purposes
• Expected introduction of GST- enable easier movement of goods across
the country
• Introduction of cashless transactions
21
References:
22
 http://www.slideshare.net/rohitbhatta/introduction-to-digital-
signatures
https://www.google.co.in/webhp?sourceid=chrome-
instant&ion=1&espv=2&ie=UTF-8#q=ppt%20on%20digital%20signature
https://en.wikipedia.org/wiki/Digital_signature
https://en.wikipedia.org/wiki/E-commerce
http://www.businessnewsdaily.com/4872-what-is-e-commerce.html
23

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Digital signatures and e-Commerce

  • 2. Topics to be Covered in this Presentation: 2  What is Digital Signature ?  How does digital signature work?  Advantages and Shortcomings of Digital Signatures  What is e-Commerce  How does e-commerce work? Advantages and Disadvantages of e-commerce
  • 3. Introduction to Digital Signatures: 3  Digital Signature is a type of asymmetric cryptography used to simulate the security properties of a signature in digital form, rather than written form  Digital signature schemes normally give two algorithms, one for signing which involves the user's secret or private key, and one for verifying signatures which involves the user's public key  The output of the signature process is called the "digital signature.“
  • 4. Introduction to Digital Signatures: 4  Digital Signature is an electronic signature that can be used to authenticate the identity of the sender of a message or the signer of a document, and possibly to ensure that the original content of the message or document that has been sent is unchanged Digital signatures are easily transportable, cannot be imitated by someone else, and can be automatically time-stamped. The ability to ensure that the original signed message arrived means that the sender cannot easily repudiate it later
  • 5. How Digital Signature works? 5  The use of digital signatures usually involves two processes, one performed by the signer and the other by the receiver of the digital signature: Digital signature creation uses a hash result derived from and unique to both the signed message and a given private key. For the hash result to be secure, there must be only a negligible possibility that the same digital signature could be created by the combination of any other message or private key
  • 6. How Digital Signature works? 6  Digital signature verification is the process of checking the digital signature by reference to the original message and a given public key, thereby determining whether the digital signature was created for that same message using the private key that corresponds to the referenced public key
  • 7. Illustration using an example: 7 Assume you were going to send the draft of a contract to your lawyer in another town. You want to give your lawyer the assurance that it was unchanged from what you sent and that it is really from you 1.You copy-and-paste the contract (it's a short one!) into an e-mail note 2.Using special software, you obtain a message hash (mathematical summary) of the contract. 3.You then use a private key that you have previously obtained from a public- private key authority to encrypt the hash 4.The encrypted hash becomes your digital signature of the message. (Note that it will be different each time you send a message)
  • 8. Illustration using an example: 8 At the other end, your lawyer receives the message. 1.To make sure it's intact and from you, your lawyer makes a hash of the received message 2.Your lawyer then uses your public key to decrypt the message hash or summary 3.If the hashes match, the received message is valid
  • 9.
  • 10. Advantages of Digital Signatures: 10 Authentication : Digital signatures can be used to authenticate the source of messages. When ownership of a digital signature secret key is bound to a specific user, a valid signature shows that the message was sent by that user Integrity : if a message is digitally signed, any change in the message will invalidate the signature. Furthermore, there is no efficient way to modify a message and its signature to produce a new message with a valid signature, because this is still considered to be computationally infeasible by most cryptographic hash functions
  • 11. Shortcomings of Digital Signatures: 11 Non-repudiation: In a cryptographic context, the word repudiation refers to the act of disclaiming responsibility for a message. A message's recipient may insist the sender attach a signature in order to make later repudiation more difficult, since the recipient can show the signed message to a third party (eg, a court) to reinforce a claim as to its signatories and integrity. However, loss of control over a user's private key will mean that all digital signatures using that key, and so ostensibly 'from' that user, are suspect. Nonetheless, a user cannot repudiate a signed message without repudiating their signature key
  • 12. e-Commerce: 12  e-Commerce is the trading or facilitation of trading in products or services using computer networks, such as the Internet  e-Commerce stands for Electronic Commerce  1979: Michael Aldrich demonstrates the first online shopping system  Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle
  • 14. Why e-Commerce? 14  Low Entry Cost  Reduces Transaction Costs  Access to Global Market  Secure Market Share
  • 15. Why e-Commerce? 15  Low Entry Cost  Reduces Transaction Costs  Access to Global Market  Secure Market Share
  • 16. Why e-Commerce? 16  Low Entry Cost  Reduces Transaction Costs  Access to Global Market  Secure Market Share
  • 17. Why e-Commerce? 17  Low Entry Cost  Reduces Transaction Costs  Access to Global Market  Secure Market Share
  • 18. Different Models of e-commerce • Business to Business • Business to Consumer • Consumer to Business • Consumer to Consumer 18
  • 19. Benefits of e-Commerce? 19  No Checkout queues  Reduced prices  You can shop anywhere in the world  Easy access 24*7  Wide selection to cater for all consumers
  • 20. Disadvantages of e-Commerce? 20  Not everyone is connected to internet  No Physical inspection of the products  Possibility of online transactions fraud
  • 21. Government Initiatives • Better broadband connectivity for tier 2 and tier 3 cities • Ministry of urban development has proposed a smart national common mobility card for travelling as well as retail purposes • Expected introduction of GST- enable easier movement of goods across the country • Introduction of cashless transactions 21
  • 23. 23