Ch1 Introduction.ppt

Electronic Commerce Security Chapter1 Introduction Dr. Farah Zawaideh  Course Description: · This course focuses on electronic commerce applications, technologies, and tools which are used to conduct business on the World Wide Web. · It re...

Electronic Commerce Security Chapter1 Introduction Dr. Farah Zawaideh  Course Description: · This course focuses on electronic commerce applications, technologies, and tools which are used to conduct business on the World Wide Web. · It reviews foundations of e-commerce, its infrastructure, current business models in business-to-consumer (B2C), consumer-to-business (C2B), business-to-business (B2B), consumer-to-consumer (C2C) transactions. · It also introduces current threats facing organizations that conduct business online and how to mitigate these challenges. It will cover secure credential services and role-based authorization, security of agent-based systems, secure electronic transactions, electronic payment systems.  Traditional commerce Commerce: is a negotiated exchange of valuable objects or services between at least two parties and includes all activities that each of the parties undertakes to complete the transaction. Commerce can be viewed from at least two different perspectives: 1. The buyer’s viewpoint 2. The seller’s viewpoint Both perspectives will illustrate that commerce involves a number of distinct activities, called business processes.  E-commerce We will define e-commerce as the use of electronic data transmission to implement or enhance any business activity. Example: A buyer sends an electronic purchase order to a seller. The seller then sends an electronic invoice back to the buyer. When used appropriately, electronic transmission can save both time and money. Some business processes can be handled well using a combination of electronic and traditional methods.  Key Properties of the Internet · The Internet is interoperable – A computer is connected to the Internet if it can communicate with any other computer connected to the Internet. · The Internet is global – The Internet structure is based on standardized and universal connectivity. · The Web makes it easy – The WWW has made high functional multimedia content easily available to users worldwide. · The costs of the network are shared across multiple applications and borne by the end users. – Businesses and consumers pay for their own connections and then are free to use the network for their purposes.  What do we mean by “Internet Commerce”? · By “Internet commerce”, we mean the use of the global Internet for purchase and sale of goods and services, including service and support after the sale. · Internet commerce is one type of the more general electronic commerce. – In this course, we use the terms “e-commerce” and “Internet commerce” interchangeably.  Why Internet Commerce? · The ability to reach new customers and create more intimate relationships with all customers · Dramatic cost reduction for distribution and customer service  Access to a Global Market · Every business on the Internet has a global presence. · The Internet makes it possible to work effectively and efficiently with customers, partners, and suppliers around the world – Worldwide, high-bandwidth communications – Essentially the same cost of communications (whether the parties are down the street or halfway around the world) – Technologies allow businesses to know more about their customers  Great Cost Reduction in Distribution and Customer Service · The ability to deliver information to customers in a low cost manner becomes an important part of making the sale. · Sending a printed brochure through postal service costs several dollars for each recipient. Sending the equivalent in e-mail costs nearly zero per recipient. · The Internet makes it possible to provide even more information at lower cost, and to have that information be always accurate, up-to-date, and searchable. · The same ideas hold for selling information products online.  The Internet Is Different from Other Media · One of the most important properties of the Internet is that everyone can be a publisher, reaching the same worldwide audiences. · This property defines how the Internet is different from other media. – The telephone allows one to call one person at a time, limiting in time the number of people one can reach, and requiring both people to be available at the same time. – Traditional mass media (newspapers, television etc.) can reach large audiences, but is limited by resources and by the investment required to create and distribute the medium.  The Internet Is Different from Other Media (cont.) · These limitations do not apply to the Internet. – Using tools such as e-mail or the Web, the sender can reach large number of receivers. Senders and receivers do not need to be available at the same time. · Implications: – Small merchants can reach customers on the Internet very effectively. – Communication technology combined with databases of customer information makes it possible to reach customers as individuals.  Business Issues in Internet Commerce · Internet commerce is about business: using the network effectively to achieve business goals. – Current technology provides tools for reaching business goals. – If we do not have a clear idea of our business goals in using the network, then technology cannot help us to achieve them. – Without the network, such a goal might have been too expensive or difficult to achieve.  Basic Concepts · Universal Addressing – Is needed in which each host can be identified uniquely underling physical network (IP address) – TCP/IP Stands for Transmission Control Protocol/Internet Protocol. A set of standardized rules that allow computers to communicate on a network such as the internet – DNS Stand for Domain Name Server Standard protocol that helps Internet users discover websites using human addresses  Basic Concepts…Cont. · Universal Processing Protocols – URL: Uniform Resource Locator – HTTP: Hypertext Transfer Protocol – HTTPS: Hypertext Transfer Protocol Secure – HTML: Hypertext Markup Language – FTP: File Transfer Protocol · Hypertext  Hypermedia via HTML – Support for text, images, sound, … · Client/Server Model – distributed application structure that partitions tasks between the providers of a resource or service, called server, and service requesters, called clients.  Internet Technologies WWW Architecture Client Client Browser Request: http://www.msn.com/default.asp Network TCP/IP Response: … Server Web Server URL  Computer Networks · Computer Network: an interconnected collection of independent computers · Why do we need networks? – File sharing Share data between different users, or access it remotely if you keep it on other connected devices – Resource sharing A computer resource made available from one host to other hosts on a computer network Some examples of shareable resources are storage devices, and printers – Sharing a single internet connection it is cost-efficient and can help protect your systems if you properly secure the network  Computer Networks – Cost savings reduce the historical or expected cost of a given transaction – Increasing storage capacity you can access files and multimedia, such as images and music, which you store remotely on other machines or network-attached storage devices · Web technologies add: – New business models: e-commerce, advertising – Applications without a client-side install Network Protocol Stack Client Server HTTP HTTP TCP TCP IP IP Ethernet Ethernet  Network Protocols · Simple Mail Transfer Protocol (SMTP) – is the standard protocol for email services on a TCP/IP network. – SMTP provides the ability to send and receive email messages. · Domain Name System (DNS) – is a hierarchical and decentralized naming system for computers, services, or other resources connected to the Internet or a private network – convert human address to machine IP · Routing Information Protocol (RIP) – is a dynamic routing protocol which uses hop count as a routing metric to find the best path between the source and the destination network.  Network Protocols…..Cont. · Simple Network Management Protocol (SNMP) – is an Internet Standard protocol for collecting and organizing information about managed devices on IP networks and for modifying that information to change device behavior. · Address Resolution Protocol (ARP) – is a communication protocol used for discovering the link layer address · Internet Group Management Protocol (IGMP) – is a communications protocol used by hosts and adjacent routers to establish multicast group memberships.