Secure Payment Networks PDF Lecture Notes 2024

Secure Payment Networks - Networks for Monetary Transactions - 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 1  Contents Lecture 2024 Introduction Structure of Financi...

Secure Payment Networks - Networks for Monetary Transactions - 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 1  Contents Lecture 2024 Introduction Structure of Financial Institutes Architecture of payment schemes and stakeholders for Monetory Transaction Solutions Secure Authentication methods – Multi Factor Authentication – Biometrics – Encryption/PKI/Digital Signature Networks attacks Examples for payment applications Securing protocols for transactions Secure Server and Cloud Solutions Distributed Ledger Technology - Solutions for Financial Transactions Crypto currency vs. regulated Financial Transactions Standardisation and Certification 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 2 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 3 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 4  Central Bank Money vs. Bank Money CBDC Connected Central Bank Banknote Sovereignity Banknote International Sourcing 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 5 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 6 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 7 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 8 Example Architecture Source: O Reilly 9 Example Architecture Source: https://hazelcast.com/use-cases/payment-processing 10 Example Architecture Source: https://hazelcast.com/use-cases/payment-processing Confidential! 11 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 12 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 13 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 14 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 15 Secure Payment Networks Authentication 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 1  Contents Lecture 2024 Introduction, Organization of the lecture Structure of Banks and Saving Banks Structure of Networks and Payment Schemes and Stakeholders Secure Authentication methods – Multi Factor Authentication – Biometrics – Encryption/PKI/Digital Signature – Verification 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 2  Definition Verification Authentication is the process of determining the identity of a person or an object. Verification, on the other hand, focuses on confirming that something is true. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 3  Many techniques such as multi-factor authentication, re-use tokens such as FIDO, and links to Credential Service Providers (CSPs) providing federation are additional security controls that can be implemented to offset the risk or pre-compromised usernames and passwords. CSPs have an ability to validate a contextual identity not just a single authentication. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 4 Authentication requirements Authentication based on a username and password combination is the most common form of authentication. As the level of security increases within an application then simple usernames and passwords are no longer acceptable as passwords are often considered pre-breached. These are important requirements because they help to fulfill many compliance requirements including PCI DSS 3.2, NIST 800-53, NIST 800-63. A breakdown of authentication requirements, the list can include: 1. Password Requirements 2. General Authenticator Requirements 3. Authenticator Lifecycle Requirements 4. Credential Storage Requirements 5. Credential Recovery Requirements 6. Look-up Secret Verifiers 7. Out of Band Verifiers 8. Single or Multi-Factor One-Time Verifiers 9. Cryptographic Software and Devices Verifiers 10. Service Authentication 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 5  Root Authentication Root Authentication means the base of Authentication: 1. Birth document 2. ID Documents 3. … Root Authentication channels: 1. Presence 2. Online 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 6  EU ID Wallet: application fields Attribute VC VC Industry 4.0 Evidence VC User Social Security Different sets of attributes can support different authentication processes. VC Payment network Source: Infineon 2022-03-31 7  Multi Factor Authenication MFA with One Time Password 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 8  Multi Factor Authenication Two Channel Communication Source: https://www.researchgate.net/figure/Authentication-protocol-using-OTP_fig2_254179 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 9  Multi Factor Authenication Two Channel Communication Two channel authentication is a mode of authentication to ensure the validity of the client metadata provided by sending and receiving OTP from one channel to the application and receiving from another channel Source: https://www.researchgate.net/figure/Authentication-protocol-using-OTP_fig2_254179 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 10 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 11 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 12 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 13  Payment Service Directive (PSD 2) Source: https://www.eba.europa.eu/publications-and-media/press-releases/eba-clarifies-application-strong-customer-authentication 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 14 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 15  eIDAS The eIDAS Regulation: Ensures that people and businesses can use their own national electronic identification schemes (eIDs) to access public services in other EU eID are available. Creates an European internal market for eTS - namely electronic signatures, electronic seals, time stamp, electronic delivery service and website authentication - by ensuring that they will work across borders and have the same legal status as traditional paper based processes. Only by providing certainty on the legal validity of all these services, businesses and citizens will use the digital interactions as their natural way of interaction. The eIDAS regulation brings benefits to European businesses, citizens and government services. Consult the infographics below to explore how eIDAS can benefit you. Source: https://www.docusign.de/eidas https://ec.europa.eu/digital-single-market/en/news/webinar-benefits-eid- and-trust-services-professional-services-sector 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 16  Verification Online Offline Video Ident DSGV (GDPR…General Data Protection Regulation) 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 17  PKI Introduction Elements of PKI A typical PKI consists of hardware, software, policies and standards to manage the creation, administration, distribution and revocation of keys and digital certificates. Digital certificates are at the heart of PKI as they affirm the identity of the certificate subject and bind that identity to the public key contained in the certificate. A typical PKI includes the following key elements: A trusted party, called a certificate authority (CA), acts as the root of trust and provides services that authenticate the identity of individuals, computers and other entities A registration authority, often called a subordinate CA, certified by a root CA to issue certificates for specific uses permitted by the root A certificate database, which stores certificate requests and issues and revokes certificates A certificate store, which resides on a local computer as a place to store issued certificates and private keys A CA issues digital certificates to entities and individuals after verifying their identity. It signs these certificates using its private key; its public key is made available to all interested parties in a self-signed CA certificate. CAs use this trusted root certificate to create a "chain of trust" -- many root certificates are embedded in Web browsers so they have built-in trust of those CAs. Web servers, email clients, smartphones and many other types of hardware and software also support PKI and contain trusted root certificates from the major CAs. Along with an entity’s or individual’s public key, digital certificates contain information about the algorithm used to create the signature, the person or entity identified, the digital signature of the CA that verified the subject data and issued the certificate, the purpose of the public key encryption, signature and certificate signing, as well as a date range during which the certificate can be considered valid. Source: G&D, Veridos, techtarget.com, https://www.youtube.com/watch?v=EizeExsarH8 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 18  PKI stakeholder 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 19  Key Handling Key Usage PKI and CA keys and certificates can be used in many applications, including IPsec and other VPN protocols, web based security protocols like Secure Sockets Layer (SSL), Transaction Layer Security (TLS) and Secure HTTP, as well as Secure Shell, PGP, etc. In some of these applications, multiple key pairs may be issued. One key set might be used for authentication and encryption, while another key set might be used for digital signatures. This enables us to have the first key pair escrowed and backed up without compromising the privacy of the owners digital signature, and therefore avoid misuse. Key Expiration At some time keys will expire. The lifetime of the key is defined at the time of the key creation, using valid from and valid to fields. Once the key expires, it must be removed from the system and destroyed. Then, the new key should be created for the owner. Expired keys are not added to the CRL. Key Revocation During the lifetime of the key, there may be situations in which we will have to revoke the key. Key revocation takes place in situations in which owner information changes, like domain name, company name, etc. Also, revocation can occur in case of key theft, if the key has been compromised, or in case of acceptable use policy violation. Once the key is revoked, it is listed in the Certificate Revocation List (CRL) and the Online Certificate Status Protocol (OCSP) server is updated. This way clients can query OCSP server to find the status of the certificate. Status of the certificate can be valid, suspended, and revoked. A suspended certificate is one which is still valid, but is temporarily removed from valid use. Suspended certificate can be reactivated again. Renewing Keys We can renew a certificate before it expires. We use our current key and sign the request for the new key. This way we don’t have to go trough the process of proving our identity, and the new key can be issued very quickly. Key Update is a related process to renewing, in which a new key is generated by modifying the old key that is still valid. Destroying Keys Key destruction takes place when key is no longer useful. When a key is to be destroyed, we need to notify the CA so that they can update their CRL and OCSP servers. Deregistration Deregistration means that all information for the owner of the key gets invalid and is to be removed from the server. This happens, for example, when the company who owns the key stops existing. Deregistration is different from revocations because in revocation, only the key gets revoked, while the owner information remains valid. In deregistration all information of the owner is deleted from the CA database. Source: http://www.utilizewindows.com/key-management-principles/ https://www.lrz.de/services/pki/einf/ (Encryption Systems) 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 20  Digital Signature Private companies and governments agencies all around the word make huge investments for the automation of their processes and in the management of the electronic documentation. The main requirement in the management of digital documentation is its equivalence, from a legal perspective, to paperwork, affixing a signature on a digital document is the fundamental principle on which are based the main processes of authorization and validation, apart from the specific area of applica on. Main benefits for the introduction of digital signing processes are cost reduction and complete automation of documental workflow, including authorization and validation phases. In essence, digital signatures allow you to replace the approval process on paper, slow and expensive, with a fully digital system, faster and cheaper. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 21 Digital Signature process Source: researchgate.net 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 22  Digital Signature Process A Digital signature is a one-way hash, of the original data, that has been encrypted with the signer’s private key. A digital signature process is composed by the following steps: The signer calculates the hash for the data he needs to sign. The message digest is a file size small (160-bit SHA-1 now deprecated, with 256-bit SHA-256) that contains some sort of control code that refers to the document. The hash function is produced minimizing the likelihood to get the same value of the digest from different texts and is also “one way” function: this means that from calculates hash it is impossible to get back the original text. The signer, using his private key, encrypt the hash calculate. Signer sends the original data and the digital signature to the receiver. The pair (document and signature) is a signed document or a document to which was attached a signature. The document is in clear text but it has the signature of the sender and can be sent so that it can be read by anyone but not altered since the digital signature guarantees also integrity of the message. For the verification, The receiving software first uses the signer’s public key to decrypt the hash, then it uses the same hashing algorithm that generated the original hash to generate a new one-way hash of the same data. The receiving software compares the new hash against the original hash. If the two hashes match, the data has not changed since it was signed. The authenticity of a document can be verified by anyone decrypting the signature of the document with the sender’s public key, obtaining the fingerprint of the document, then comparing it with that obtained by applying the hash function (which is known) to the document received which was attached the signature. If the two fingerprints are equal, the authenticity and integrity of the document are demonstrated. The signing and verification operations may be delegated to a schedule issued by the certification. Thanks to the mechanism shown, the digital signature ensures non-repudiation: the signer of a document transmitted cannot deny having sent it and the receiver can deny to have received it. In other words means that the information cannot be ignored, as in the case of a conventional signature on a paper document in the presence of witnesses. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 23  Examples Resuming, digital signatures can reliably automate the signatures of authorization allowing the elimination of paper, reducing costs and improving the speed of production processes. By virtue of all these advantages, the digital signature can be particularly useful for: Government agencies in regulated sectors with workflows subject to formal approval; organizations must submit documents that need to be approved by various offices; representatives of organizations that use, or services that require commercial building and the provision of reports or contracts signed; Away from executives such as a signature is required to activate the processes; organizations which cooperate with external partners and require approval for workflows; Web portals with external modules that require compilation and signing. Note that the type of documents to which to apply the digital signature is particularly composite, and includes: – sales proposals, contracts with customers. – purchase orders, contracts / agreements with partners. – contracts, agreements, acts of the board. – leases, contracts, expense reports and reimbursement approvals. – Human Resources: Documentation of employment of employees, presence control cards. – Life Sciences: Questions and proposals, QC records, standard operating procedures (SOPs), policies, work instructions. – Mechanical work: drawings, sketches, plans, instructions and relations of production. health services: medical and patient consent forms, medical exams, prescriptions, laboratory reports. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 24 Qualified Digital Signature A qualified electronic signature is an electronic signature that is compliant to EU Regulation No 910/2014 (eIDAS Regulation) for electronic transactions within the internal European market. It enables to verify the authorship of a declaration in electronic data exchange over long periods of time. Qualified electronic signatures can be considered as digital equivalent to handwritten signatures.(Dawn M. "Qualified Electronic Signatures For eIDAS". Cryptomathic. Retrieved 13 June 2016. Qualified Electronic Signature". Bundesnetzagentur. Retrieved 13 June 2016) What are the eSignatures Assurance Levels Under eIDAS? Regulations such as eIDAS have developed their own eSignature classifications based on trust and assurance. These terms signify the level of assurance provided by different types of signatures as specified by the goals of the regulation. The following classifications are the terms presented by eIDAS with the goal of creating a common foundation and framework for secure electronic signatures to enhance trust and facilitate interoperability and cross-border usage and acceptance. eIDAS have also created an accreditation for delivering eSignatures with the highest level of assurance (qualified electronic signatures) and in doing so, they have changed the market for eSignatures in Europe. Let’s look into how they have done this. Basic Level Electronic Signatures Advanced Electronic Signatures Qualified Electronic Signatures A qualified electronic signature is: An advanced electronic signature that is created by a qualified signature creation device and which is based on a qualified certificate for electronic signatures. First, let’s look at what a ‘qualified signature creation device’ is. According to eIDAS requirements, The device must ensure: The confidentiality of the electronic signature creation data The electronic signature creation data used for electronic signature creation can practically only occur once The electronic signature creation data used for signature creation cannot be derived and the signature is protected against forgery using current available technology The electronic signature creation data used for signature creation can be reliably protected by the legitimate signatory against use by others The device shall not alter the data to be signed or prevent such data from being presented to the signatory prior to signing Generating or managing signatory data on behalf of the signatory may only be done by a qualified trust service provider Without prejudice to point (d) of point 1, qualified trust service providers managing electronic signature creation data on behalf of the signatory may duplicate the electronic signature creation data only for back-up purposes provided the following requirements are met: The security of the duplicated datasets must be at the same level as for the original datasets The number of duplicated datasets shall not exceed the minimum needed to ensure continuity of the service It might seem a bit vague (probably because they are covering themselves so as to stay in line with technological standards in the future), but what the regulation is saying is that if you are using a qualified electronic signature, you must be storing the creation and signature data on a highly reliable and assured device. What hardware is reliable enough to do this? Our advice is to store this information in a HSM (Hardware Service Module) which can be stored in your organization in a secure place. For it to have all the security features mentioned above, you would need the HSM to be in line with FIPS 140-2 Level 3 at minimum, which is a security standard created for cryptographic modules like a HSM. The next part of the definition for qualified electronic signatures says that data on the device must be based on a ‘qualified certificate for electronic signatures’. As opposed to advanced electronic signatures, which do not outright say you have to use a Digital Certificate, the definition for qualified says that a certificate is a must. A qualified certificate can only be purchased from a Certificate Authority who is also ISO 15408 accredited as per the regulation. EU Member states are required to recognize the validity of a qualified electronic signature that has been created using a qualified certificate from another member state. 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 25 Signature types 10/27/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 26 Authentication Biometrics 1  Definition Biometrics Biometrics is the technical term for body measurements and calculations. There are two types of biometrics: Physiological measurements They can be either morphological or biological. Morphological identifiers mainly consist of fingerprints, the hand's shape, the finger, vein pattern, the eye (iris and retina), and the face's shape. It refers to metrics related to human characteristics. Biometrics authentication (or realistic authentication) is used in computer science as a form of identification and access control. It is also used to identify individuals in groups that are under surveillance. Biometric identifiers are the distinctive, measurable characteristics used to label and describe individuals. Biometric identifiers are often categorized as physiological versus behavioral characteristics. Physiological characteristics are related to the shape of the body. Examples include, but are not limited to fingerprint, palm veins, face recognition, DNA, palm print, hand geometry, iris recognition, retina and odour/scent. Behavioral characteristics are related to the pattern of behavior of a person, including but not limited to typing rhythm, gait, and voice. Some researchers have coined the term behaviometrics to describe the latter class of biometrics. 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 2 Types of Biometrics Top3 for Government Source for Biometric Algorithm https://www.hindawi.com/ 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 3 Biometrics: Process phases Enrollment A major approach for fingerprint recognition today is to extract minutiae from fingerprint images and to perform fingerprint matching based on the Record of several images number of corresponding minutiae pairings. One of the most difficult problems in fingerprint recognition has been that the recognition Calculation of characteristics performance is significantly influenced by fingertip surface condition, which may vary depending on environmental or personal causes. Storage of characteristics in Addressing this problem, this paper presents a fingerprint recognition algorithm using phase-based image matching. The use of phase – Database components in 2D (two-dimensional) discrete Fourier transforms of fingerprint images makes possible to achieve highly robust fingerprint – On Token recognition for low-quality fingerprints. Experimental evaluation using a set of fingerprint images captured from fingertips with difficult conditions Source: https://www.okta.com/HS (e.g., dry fingertips, rough fingertips, allergic-skin fingertips) demonstrates an efficient recognition performance of the proposed algorithm compared with a typical minutiae-based algorithm. 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 4 Biometrics: Image compression Interoperability The JPEG-2000 standard, known formally as ISO/IEC International Standard 15444. The concepts and methods involved in JPEG-2000 image coding are outlined, concentrating on the JPEG-2000 baseline and the features that distinguish JPEG-2000 from other image coding methods. Source: Brislawn, C., Quirk, M.: Image compression with the JPEG-2000 The Federal Bureau of Investigation (FBI) has formulated national specifications for digitization and compression of gray-scale fingerprint images. The compression algorithm [Fed93] for the digitized images is based on adaptive uniform scalar quantization of a discrete wavelet transform subband decomposition, a family of techniques referred to as wavelet/scalar quantization (WSQ) methods. Grother, P., McCabe, M., Watson, C., Indovina, M., Salamon, W., Flanagan, P., Tabassi, E., Newton, E., Wilson, C.: MINEX: Performance and Interoperability of the INCITS 378 Fingerprint Template. NIST MINEX Evaluation Report (2006) 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 5 Biometrics: Verification/Identification Verification 1:1 Identification 1:n Calculation of characteristics Match of characteristics in – Database – On Token 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 6 Biometrics: Evaluation False Acceptance Rate False Rejection Rate Equal Error Rate 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 7 Biometric Identification: Security levels Hidden feature: Life-long biometric 3 DNA Fingerprint Dedicated devices  Proliferation  2 for inspection: Commodity Iris; Face  Spoofable Fingerprint,  Changes with time 1 Behavioral Manual inspection  Inaccurate or smartphone  Morphing risks camera:  Agents get tired Photo identification 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 8  Rapid DNA  Restricted output only ID “Who is who” not more => for Verification  Processing time 90 min  FAR/FRR “One of a trillion”  Mobile Application Source: Ande, Thermofischer 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 9  Biometrics and AI How does AI make biometric authentication more secure? Several years ago, when biometric identity verification was still in its infancy, this technology was quite susceptible to being tricked – in some cases, it was enough to hold a photo of the authorized person in front of the camera to fool facial recognition (this is called a presentation attack). However, biometric methods are much more precise today and therefore offer higher security as an authentication method than passwords and PINs. This is not least due to the use of artificial intelligence. For example, if you want to unlock the smartphone with a fingerprint, the AI compares the data that has just been collected with the stored reference data on the fingerprint of the same person. Only when the data matches is the mobile phone unlocked. Machine learning algorithms recognize the patterns in biometric data automatically and with high precision. In addition, AI systems learn from a growing amount of data, continuously improving their ability to distinguish biometric data from counterfeits. Source: https://www.onlinesicherheit.gv.at/Services/News/KI-Risiken-Biometrische-Authentifizierung.html 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 10 Biometrics: Evaluation, Certification 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 11 ABIS Bordercontrol Solution Example of a border control solution including VISA Application. This version is with central database. DLT solutions are in pilots for testing. 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 12  ABIS Enrollment Station  Mobile Enrollment Kit includes:  PC  Online Connection  Camera  Finger Scanner  Optional Iris Scanner  Printer Mobile Verification device 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 13  ABIS (Automated Biometric Identification System)  Duplication checks  Finger Duplication  Signature Duplication  Picture Duplication 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 14  Data privacy Source; https://www.aosphere.com/aos/rulefinder-data-privacy-trial?  EUROPEAN Regulation  DSGVO  In combination with biometric data 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 15  Morphing, Antispoofing Attacks: - Morphing - Anti-Spoofing Source: Handbook of Biometric Anti-Spoofing Editors (view affiliations) Sébastien Marcel Mark S. Nixon Julian Fierrez Nicholas Evans 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 16 Biometrics: Security Concept Integration Level of security Organisation Biometrics 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 17 Biometrics different views…  Legal Aspects  Privacy  Data Storage  Judicial Assessment  Operator view  Easy to use  Reliability  Administration costs  Customer Acceptance 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 18  Biometrics: Key Questions Today 2020 2030 Biometrics - a current and future Technology? Proliferation Fraud detection  Technological Potential  New Approaches Biometric Methods Fingerprint Vein Matching Iris Recognition Behavioral Analysis  New Approaches like In Motion Identification Utilization + Platforms Smartcards Mobile Applications back-end Server  Added Value  Use Cases (e.g. Border Control) Beyond Biometrics – Prospective Identification Concepts  Our vision for the future Authentication without password **** 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 20 Slide 20  Biometrics Use Case Secure Remote Identification Traditional Video Ident Time to register and open an account User convenicence 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 21  Use case Border Control benefits from it Twice as much travel activity in the next 20 years Faster More convenient More secure 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 22 June 6th, 2017 Biometrics on the Fly …just walk through Check via: - Face recognition - Secure UHF badge 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 23  eIdentity potential Economic value of digital identity is very high $b p.a. 20 Undetermined value of future products and 15 services 10 5 SOURCE: AUSTRALIA POST – DIGITAL IDENTITY WHITE PAPER 0 Reduced Reduced Improveed Consumer Total cost cost customer value 11 $b to serve of fraud experience generated 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 24 June 6th, 2017  Biometrics  Process efficiency  Reduction of Total costs of ownership  Security  Transparency  Track and trace functionality 11/3/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 25  Secure Smartphones Security Mechanism, mobile Wallets and key management 1 Why Security Mechanism… Personal Data Id´s Business Information Transaction fraud Value fraud – mobile payment Update OS Apps installations Browser and websites Open WLAN Emails….Ransomware, Phishing Lost Devices Sources: https://www.computerwissen.de/smartphone/pflege-wartung-sicherheit/mobile-secrurity/ 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 2  Banking Security Mechanism lost phone… To lock your smartphone in the event of loss, many of these apps simply require you to send a predefined message with the correct command code to your own cell phone number. This will delete your personal data on the device or make it impossible to access it. It is also possible to have a smartphone or mobile-enabled tablet located by the network operator using its IMEI number - a unique serial number - under certain conditions. Make a note of this number beforehand.You can find the IMEI of your device via the Settings app or by using the key code *#06#. It can also be found on the packaging or on your provider's invoice. It serves as proof of ownership in the event of theft. Source: BSI 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 3 Example for offerings Hardware Security TEE Software Security 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 4 Banking Security Mechanism… Offering example: We use several layers of proven security technologies and processes to provide you with secure online access to your accounts and information. These are continuously evaluated and updated by our experts to ensure that we protect you and your information. These include: Secure Socket Layer (SSL) Encryption Authentication Firewalls Computer Anti-Virus Protection Data Integrity Ensuring Your Online Safety Source: Royal Bank of Scotland Other sources: https://www.computerwissen.de/smartphone/pflege-wartung-sicherheit/mobile-secrurity/ 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 5 Smartphone Security Pre- and Post- security mechanism 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 6 Security Architectures –Secure Elements 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 7 Smartphone security Source: Infineon 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 8 Sandbox priciple In computer security, a sandbox is a security mechanism for separating running programs, usually in an effort to mitigate system failures or software vulnerabilities from spreading. It is often used to execute untested or untrusted programs or code, possibly from unverified or untrusted third parties, suppliers, users or websites, without risking harm to the host machine or operating system. A sandbox typically provides a tightly controlled set of resources for guest programs to run in, such as storage and memory scratch space. Network access, the ability to inspect the host system or read from input devices are usually disallowed or heavily restricted. In the sense of providing a highly controlled environment, sandboxes may be seen as a specific example of virtualization. A sandbox is an isolated testing environment that enables users to run programs or execute files without affecting the application, system or platform on which they run.... Without sandboxing, an application or other system process could have unlimited access to all the user data and system resources on a network. Source: https://searchsecurity.techtarget.com/definition/sandbox; wikipedia, company info 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 9 OS Virtualization Source: Swathi V.N.V.L.S, Swathi A.; International Journal of Advance Research, Ideas and Innovations in Technology 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 10 Trusted Execution Environment (TEE) 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 11 Trusted Execution Environment (TEE) NVM…Non Volatile Memory Source: Trusttronic 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 12  Example ARM Trustzone Trustzone is system-wide approach to security with hardware-enforced isolation built into the CPU. It provides the perfect starting point for establishing a device root of trust based on Platform Security Architecture (PSA) guidelines. Source: ARM 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 13 Secure Display / Keypad Secure in- and output or Secure OS New protocols e.g. ISO/IEC 7816 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 14  Secure eID card reader Normal World - NWd Secure World - SWd Realization of the eID Reader Application ARM TrustZone® with MobiCore® Comfort Reader TLC API Trustlet Connector SmartCard API eID Reader Trustlet Comfort TCI (TLC) ARM TrustZone® with G&D MobiCore MC Trustlet API MobiCore® SmartCard API High-Level Interface necessary. Similar to TR3119 eg. PACE, NFC and ISO/IEC 24727 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 15 Mobile Wallet If you buy a physical/classical wallet, you buy an empty wallet The classical wallet is a container for your cards, coins, banknotes, ID cards etc. You open it, you touch it, you put it into your pocket, you can loose it …  A physical wallet is the base line of a mobile wallet A mobile wallet is a graphical user interface on a mobile device and it‘s empty at the beginning as well A mobile wallet in the sense of G&D focuses on security relevant applications It offers the user the ability to manage those applications It gives an overview of the user‘s electronical/financial belongings It‘s an easy front end to online and physical use cases The mobile wallet provides the same and more use cases a physical wallet And: You will never loose it. 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 16 Three Different Scenarios for Mobile Wallets A B C 3rd 3rd 3rd party party party … App X&Y App1 App2 App3 … AppA AppB … Mobile Mobile Wallet / Browser Wallet Mobile Operating System of Smart Phone SCWS / BIP SIM microSD embedded MobiCore … 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 17 Description of Scenarios A to C Scenario A – Generic model, open source approach – User and provider centric – Not spread in the market by today – Examples: Venyon (Midlet), Toro, Halcom Scenario B – „Walled Garden“, one issuer who defines the APIs and makes the selection of one or more applications, but on multi OS – Operator centric – Partly introduced in the market by today – Examples: Telefonica, Vodafone 360, Visa Scenario C – One, classical and unique application – Application and OEM centric – Widely used in the market by today – Examples: Bank of America, Paypal, Apple (iPhone & App-Store) 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 18 Simplified Framework of Mobile Wallets Service Provider (SP) One Interfaces Individual Customer chooses his device Transaction Interfaces (SP - User) One or multiple Mobile Wallet(s) … Management Interfaces Backend Secure Element(s) 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 19  Mobile Wallet providers mFoundry Zenius Toro C-Sam Firethorn Halcom Monitise Sybase 365 Mobile Distillery (SW House) Gemalto Vivotech First Data Icon Mobile Tic Mobile Handpay (China Union Pay) Star Money 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 20  Wallet Applications Loyalty Payment Identity Management Mobile Wallet Physical Service Access Discovery Gaming Ticketing Money Transfer 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 21  Key Management TEE Component Overview NWd SWd Device Container Services C1 C2 Servic Servic Free Clients Servic Servic Servic Servic Space e e e e ee ee ic ic rv rv Se Se Service Manager TZ Driver TZ Runtime Environment NWd OS Monitor MTK 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 22  Enabling & Activation Enabling Activation: - Preparation of a container for third parties Trust Zone Trust Zone Trustlets not functional functional Activation Activation ACTIVATED ACTIVATED Enabling: - Initialization of Keys SECURED SECURED - Configuration of the TZ Runtime TERMINATED TERMINATED LOCKED 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 23  Trustlet Life Cycle Installation INSTALLED EXECUTABLE SERVICE LOCKED SPECIFIC 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 24  Key Management Enabling 1.Step P1 P1 P1 P1 P1 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 25  Key Management Enabling 2.Step Generate key pair TrustZone [SerNO #] Bank branch P1 G&D Install TZ SW and certify PuK.DEV SerNo (triggers device selection) Integrity Flash Secure Flash PrK.AUT.DEV TZ.Bootstrap_1 SerNo CGD.PuK.AUT.DEV = PuK.Root.GD P1 Sign*[PrK.GuD.AUT.GD](PuK.AUT.DEV) PuK.AUT.DEV PrK.AUT.DEV *= can be diversified by SerNo ROM ROM Fuses 1.) Secure channel TZ generates key pair by Bank’s comm. TZ receives G&D certificate PuK.OEM.RT PuK.OEM.SK.Fuse.DEV channel 2.) G&D dev. auth. P TZ exports generated PuK.AUT G&D signs to C.PuK.AUT via K.Pers (see below) 1 TZ receives certificate TZ can now authenticate in unsafe environment Receive G&D cert TrustZone [SerNO #] Bank branch The bank branch can assure the user’s “act of will” to Integrity Flash Secure Flash install TZ software (coupled with an immediate charge) TZ.Boot2 + TZ.SW CGD.PuK.AUT.DEV PuK.Root.GD P1 TZ.Boot2 + TZ.SW Open question: Shouldn’t we make it easier to join ? Idea: Run example application … ? CGD.PuK.AUT.DEV PrK.AUT.DEV Confidentiality by ROM ROM Fuses E[K.Pers]sym. CGD.PuK.AUT.DEV is the generic key to download where K.Pers = further keys / containers / SW through G&D PuK.OEM.RT PuK.OEM.SK.Fuse.DEV Hash(SK.Fuse.DEV) After enabling, TZ can be activated and applications can be loaded 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 26  Key Management Activation P1 P1 P1 P1 P1 11/11/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 27  Secure Payment Networks Blockchain features 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 1  Blockchain … for Financial- and Government 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 2 Blockchain..a solution for a non trusted environment with no settlement 3 Distributed ledger..use case for the future Smart contracts are contracts whose terms are recorded in a computer language instead of legal language. Smart contracts can be automatically executed by a computing system, such as a suitable distributed ledger system. The potential benefits of smart contracts include low contracting, enforcement, and compliance costs; consequently it becomes economically viable to form contracts over numerous low-value transactions. The potential risks include a reliance on the computing system that executes the contract. At this stage, the risks and benefits are largely theoretical because the technology of smart contracts is still in its infancy, and some time away from widespread deployment. Source : https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1-distributed-ledger- technology.pdf 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 4  Example System Architecture 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 5  Example System Architecture 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 6  Example Tech. Stack Native Apps. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 7  Example Etherium Blockchain Ethereum has well established itself as one of the leading cryptocurrencies out there. The blockchain-based platform encompasses a range of features including smart contracts, the Ethereum Virtual Machine (EVM) and Ether. The main advantages are: Speed through - Scalability Multiapplication through easy Integration of smart contracts Security through Encryption methods 8 Hyperledger besu architecture For the base, we use Hyperledger besu which is a Java-based Ethereum client that implements Enterprise Ethereum Alliance (EEA) specifications. It can work on public or private networks, as well as on several test nets. (Bogdanov, 2021) It provides consensus algorithms well suited for use in blockchain consortia or other private networks, such as Proof of Work and Proof of Authority. Furthermore, it supplies peer-to-peer (P2P) networking and storage division to blockchain and world state data. Additionally, you can create permissioned networks by specifying the nodes and accounts for participation. Its design is enterprise-friendly for public and private permissioned network use cases. Hyperledger besu can be used to develop enterprise applications requiring secure, high-performance transaction processing in a private network. It includes a command line interface and JSON-RPC API for running, maintaining, debugging, and monitoring nodes. An API or an Application Programming Interface is made up of set of rules and protocols that allow different software applications to communicate and interact with each other. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 9  Consistency and Integrity The IBFT 2.0 protocol maintains the order of transactions, which guarantees data The people are chosen at random, and therefore the risk of takeover by a consistency and integrity. 51% attack is minimized. It's a three-phase protocol, pre-prepare in which the proposer proposes a block, IBFT 2.0 ensures immediate finality, is robust in an eventually synchronous network model, and features a dynamic validator set. prepare, in which the validators agree on a block, and commit, in which validators agree on a commit. The IBFT 2.0 protocol maintains the order of transactions, which guarantees data consistency and integrity. The IBFT 2.0 protocol can guarantee The IBFT algorithm proceeds in rounds with a new block created every T second, decentralization, provenance, privacy, fault tolerance, and immutable. (Rodrigo D. Garcia, 2022) where the block period T is a constant configuration parameter. In each round, one of the validators is selected as the proposer. The proposer creates the new block Furthermore, to track transactions and ensure privacy and auditability, the IBFT 2.0 protocol maintains a Chain of Custody (CoC). CoC must ensure that and broadcasts it to all validators with a pre-prepared message. Upon receiving evidence is not altered during the investigation, despite multiple entities pre-prepare messages, validators enter the pre-prepared phase and broadcast owning them, to be admissible in a legal court. The CoC in IBFT 2.0 ensures: prepare messages. This ensures that validators are aligned to the same round and  Integrity: the evidence has not been altered or corrupted during the block. Upon receiving 2f +1 prepare messages, validators enter the prepared transfer. phase and broadcast commit messages to inform other validators that they accept  Traceability: the evidence must be traced from the time of its collection until it is destroyed. the proposed block. Finally, upon receiving 2f + 1 commit messages, validators  Authentication: all the entities interacting with evidence must provide enter the committed phase and insert the block in the blockchain. (Silvia Bonomi, an irrefutable sign as recognizable proof of their identity. 2018)  Verifiability: the whole process must be verifiable by every entity involved during the process.  Security - Tampering proof: Changeovers of evidence cannot be altered or corrupted. (Silvia Bonomi, 2018) Due to this chain of custody, the blockchain stakeholders will be able to know who used what and when. 10 Example Tokenization based on ERC20 11 Application Transaction Flow 12 Distributed ledger interoperability The solution based on based on Hyperledger besu, which is built to be Ethereum compatible, it supports Ethereum-based smart contracts. The smart contract functionality of Ethereum allows smart contracts to be created on ERC-20, which is a standard that facilitates interoperability. Ethereum-based smart contracts furthermore allow TWEXGOV Edition to connect and bridge to different networks. By incorporating these features from Hyperledger besu CDBC solution offers a highly interoperable application that can easily be incorporated with other networks and allow users to be connected to more and more networks using one application in the future. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 13 Distributed ledger scalability Using Hyperledger besu and IBFT 2.0 consensus protocol allows the application to be scaled dynamically as transaction volumes can be increased using node configuration, node scaling, and coordination techniques among other things. (Jungwon Seo, 2020) It also supports fast block times and efficient and eco-friendly consensus algorithms like IBFT 2.0. (Besu, 2022) the solution. Further ensures that continuous improvement is done in the system to ensure that the CBDC system evolves with technological advancements and changing user needs. Regular upgrades, patches, and feature enhancements help maintain scalability, security, and performance as the system matures. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 14 Scalability through two-tier CBDC architecture 15 Distributed ledger configurability 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 16 Distributed ledger beyond blockchain Highly centralised systems present a high costs single point of failure. They may be vulnerable to cyber-attack and the data is often out of sync, out of date or simply inaccurate. In contrast, distributed ledgers are inherently harder to attack because instead of a single database, there are multiple shared copies of the same database, so a cyber-attack would have to attack all the copies simultaneously to be successful. Governments are starting to apply distributed ledger technologies to conduct their business. The Estonian government has been experimenting with distributed ledger technology for a number of years using a form of distributed ledger technology known as Keyless Signature Infrastructure (KSI). But digital cryptocurrencies are of interest to central banks and government finance departments around the world which are studying them with great interest. This is because the electronic distribution of digital cash offers potential efficiencies and, unlike physical cash, it brings with it a ledger of transactions that is absent from physical cash. In the case of the digital world, there are two sets of rules or codes that control the operation of digital technologies. The first is the classical set of rules provided by the legislative framework, the code of law and regulation. The second is the set of rules that determine the operation of the algorithms encoded by the software. This is the technical code, and there needs to be at least as much focus on ensuring the rigour of the technical code as on legislative code. Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1- distributed-ledger-technology.pdf 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 17 Tokenization 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 18 Example Next Gen Datacenter architecture (Access, Track and Trace, …) The GSH2 model Status Access to Datacenter up to national registers are provided through API/middleware. In many cases a use-case management tool is interacting with the DC plus DRC central data. DLT Problems of the existing traditional system (central datacenter):  4-6- eye principle can be mis-used – no secured tacking solution can be ensured.  Access from non trusted parties is not possible  No SSI functionality Therefore the GSG2 is combining the advantages of both solution (Datacenter/Blockchain) by using both modules for different purposes. Using Datacenter for storage and using DLT/Blockchain for Access and Track and Trace. Requests including Track and Trace on blockchain. No info without consent… Smart contracts ensure security! 19  Digital National-ID via DLT Architecture CITIZENS GOVERNMENT ENTERPRISE ONLINE ELECTRONIC SERVICES SCHOOL HEALTH POLICE BANK DC plus DRC DC plus DRC DLT DLT Certificate eID SECURE LAYER MONITORING Authority for ISO 27001 ISO 27001 SYSTEM Electronic Digital Signature REGISTRY REGISTRY OF MED. CIVIL REGISTRY REGISTRY REGISTRY OF REGISTRY OF JUSTICE INSTITUTIONS TOURISTS OF SOCIAL TRANSPORT OF BORDER & SERVICES WELFARE CONTROL CENTRALIZED DATABASES 20 Tokenization 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 21 Tokenization 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 22 Example CBDC „Dual – Connected Banknote“ The connected banknote is a customizable CBDC solution that bridges the physical and digital worlds of a currency and complements cash. Transferring its value is transparent, secure, easy to use, and fast. A smart banknote solves three issues of CBDC: Offline availability Limited anonymity Psychological aspect of possession of physical things 2 x 2D barcodes Public Key Privat Key Additional security features 05.12.2023 confidential 23 Functions of the solution: Creation of e-wallet Installing mobile app (Android/iOS) Refilling ewallet Transfer to other wallets Transfer to physical cash Execution of government payments like Gov employee payments 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 24  Proof Of Concept: The Test Cases (Whole Sales Scenario) No Test Case A1 Token Creation/Pre-Issuance, Issuance A2 Audits C4: Test Case Example A3 Creation of a Private Bank as Client A4 Transfer of tokens to the Private Bank No Test Case A5 Token redemption E1 The token is Returns to CB Centr al Bank No Test Case B1 Transfer funds to Another Bank Commerc Commerc B2 Create custom fees per transaction e Bank e Bank B3 Point User/ of Citizen No Test Case Sale When it comes to sending money from one user to another, e.g. No Test Case D1 The point of sale receives the funds in e-currency from Carol who is a user of bank branch 2 sends money to Bob who is C1 A user purchases a good online with his e-currency test C1 C2 A user purchases a good at a PoS with his e-currency a user of bank branch 1, then the benefit becomes evident: D2 A user purchases something at a PoS with his e-currency C3 A user creates his e-currency account at the bank since both branch 1 and 2 maintain the system nodes with the C4 User A sends money to user B full transactions history synchronized in real time, the transfer process for the bank’s accounting system becomes seamless, real-time, and cost-effective. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 25  Proof Of Concept: The Test Cases (Whole Sales Scenario) Example UML 1.User is willing to perform the deposit into the TokenD via web or mobile application. It is possible to mark assets created in TokenD as depositable using the details of an asset (details could be any JSON object, so you can pass any additional data if needed). To start the deposit flow, a user sends a request to PSIM. 1. PSIM sends a request to the payment system (in our case, SafeCharge). Payment system (further referred to as "PS" or "SafeCharge") generates a unique session ID for the deposit and returns it back to PSIM. PSIM returns it back to the User. 2.Using their application, a user sends a request where they specify card details to SafeCharge and receives their unique identifier. 3.User passes a unique identifier of the card, amount to deposit and additional details to PSIM. 1. PSIM creates a request for the issuance to the TokenD Core. This request contains the amount to be issued, account on which issuance should be performed as well as all the required tasks that have to be processed to have the issuance performed. 2. TokenD Core returns a unique identifier of the request. 3. PSIM passes all the data to PS. PS performs the transfer of funds from the user’s credit card to the account of the issuer in PS. 4. PSIM approves the issuance request of the corresponding amount of tokens to a user. For big amounts, it is recommended to request manual verification by an admin. To do this, PSIM needs to remove tasks that it is supposed to process and add a new one for an admin (tasks to be processed are defined by the developers depending on their needs). After the confirmation that the transfer is legitimate, an admin removes these tasks and tokens are issued to the user account 5. User receives confirmation that the deposit is successful. 12/8/2024/Dr. Hermann Sterzinger Netzwerke für den Zahlungsverkehr 26 Digital Identity in Payment  Example Bankable environmental Tokens Datencenter Trading Platform Entity trading Ministry trading Sample KPI definition DC plus DRC Water DLT collection AI analytics Air Statistics Analysis DC plus DRC Soil Data processing DLT Parameter ISO 27001 Token mint, buy, sell ISO 27001 On-chain: Track and trace Token based loans Access … Recording Bonus Payment In collaboration with 28  Achievements: Secure, Simple and Speed of Transaction Triple-S platform, based on DLT Solution has been tested and proven. Main advantages: - Allows to quickly create new business models and processes - Enables support of modern security techniques - Reduces the risk inherent in software development from scratch - Allows you to launch an ecosystem within weeks. DLT is a highly modular system built using the microservices architecture. It can be divided into two parts: - DLT-based logic (node) responsible for the key functionalities such as tokens management and distribution, rights management. - Auxiliary modules, which interconnect DLT with external systems and store user data. - strictly confidential - Terms to know… AML Anti Money Laundering API Application Programming Interface CBDC Central Bank Digital Currency CRM Customer Relationship Management GDPR General Data Protection Regulation ERP Enterprise Resource Planning IP Identity Provider KYC Know Your Customer MVP Minimum Viable Product PKI Public Key Infrastructure PSIM Payment System Integration Mo