The development and use of the Secure Electronic Transaction (SET) protocol on the internet

While still in its infancy, Electronic Commerce is growing at an exponential rate each year (Walson, 1997. p.53). Although few doubt that such growth will only continue in years to come, many people still have serious reservations about the levels of security offered by currently available applications for conducting such trade. This thesis identifies some of the key areas of concern regarding Electronic Commerce on the lnternet, and looks at the ways in which the Secure Electronic Transaction (SET) model, proposed by Mastercard and Visa, succeeds or fails in addressing these concerns. It identifies and describes the key dements and primary functions of the SET protocols in a manner that will enable students and other interested parties to understand these protocols quickly and easily

How to Issue a Central Bank Digital Currency

With the emergence of Bitcoin and recently proposed stablecoins from BigTechs, such as Diem (formerly Libra), central banks face growing competition from private actors offering their own digital alternative to physical cash. We do not address the normative question whether a central bank should issue a central bank digital currency (CBDC) or not. Instead, we contribute to the current research debate by showing how a central bank could do so, if desired. We propose a token-based system without distributed ledger technology and show how earlier-deployed, software-only electronic cash can be improved upon to preserve transaction privacy, meet regulatory requirements in a compelling way, and offer a level of quantum-resistant protection against systemic privacy risk. Neither monetary policy nor financial stability would be materially affected because a CBDC with this design would replicate physical cash rather than bank deposits

An ownership-base message admission control mechanism for curbing spam

Unsolicited e-mail has brought much annoyance to users, thus, making e-mail less reliable as a communication tool. This has happened because current email architecture has key limitations. For instance, while it allows senders to send as many messages as they want, it does not provide adequate capability to recipients to prevent unrestricted access to their mailbox. This research develops a new approach to equip recipients with ability to control access to their mailbox.This thesis builds an ownership-based approach to control mailbox usage employing the CyberOrgs model. CyberOrgs is a model that provides facilities to control resources in multi-agent systems. We consider a mailbox to be a precious resource of its owner. Any access to the resource requires its owner's permission. Thus, we give recipients a capability to manage their valuable resource - mailbox. In our approach, message senders obtain a permission to send messages through negotiation. In this negotiation, a sender makes a proposal and the intended recipient evaluates the proposal according to their own policies. A sender's desired outcome of a negotiation is a contract, which conducts the subsequent communication between the sender and the recipient. Contracts help senders and recipients construct a long-term relationship.Besides allowing individuals to control their mailbox, we consider groups, which represent organizations in human society, in order to allow organizations to manage their resources including mailboxes, message sending allowances, and contracts.A prototype based on our approach is implemented. In the prototype, policies are separated from the mechanisms. Examples of policies are presented and a public policy interface is exposed to allow programmers to develop custom policies. Experimental results demonstrate that the system performance is policy-dependent. In other words, as long as policies are carefully designed, communication involving negotiation has minimal overhead compared to communication in which senders deliver messages to recipients directly

How to Issue a Central Bank Digital Currency

With the emergence of Bitcoin and recently proposed stablecoins from BigTechs, such as Diem (formerly Libra), central banks face growing competition from private actors offering their own digital alternative to physical cash. We do not address the normative question whether a central bank should issue a central bank digital currency (CBDC) or not. Instead, we contribute to the current research debate by showing how a central bank could do so, if desired. We propose a token-based system without distributed ledger technology and show how earlier-deployed, software-only electronic cash can be improved upon to preserve transaction privacy, meet regulatory requirements in a compelling way, and offer a level of quantum-resistant protection against systemic privacy risk. Neither monetary policy nor financial stability would be materially affected because a CBDC with this design would replicate physical cash rather than bank deposits.Comment: Swiss National Bank Working Paper3/202

Cryptocurrencies: An Overview, Investment Investigation, Comparative Analysis, and Regulatory Proposals

With cryptocurrencies moving out of obscurity and into the public eye, the initial purpose of this research paper is to provide the history of cryptocurrencies, to explain the complex workings in and around cryptocurrencies, investigate their investment potential, and to draw attention to their potential for misuse. To follow, the primary purpose is to create a platform on which to compare cryptocurrencies with more common mediums of exchange, analyze their current international regulatory climate, highlight their trends within influential nations, discuss their pending and future regulation, and provide personal proposals for additional regulation. Due to the complex nature of the subject, the data and information compiled contain reputable secondary research, data collected from popular cryptocurrency websites, as well as mainstream news reports of current happenings in the field. As of the writing of this paper, the direct regulation of cryptocurrencies is minimal in most nations; however, it is likely that the introduction of more oversight will occur in the near future. That being said, with the public opinion and government approval of cryptocurrencies as volatile as their values, there is much to be seen as to the degree in which cryptocurrencies will be integrated into both personal and commercial sectors over time and to what extent the regulatory oversight of them will be implemented throughout the world

Off-line Digital Cash Schemes Providing Unlinkability, Anonymity and Change

Several ecash systems have been proposed in the last twenty years or so, each offering features similar to real cash. One feature which to date has not been provided is that of a payee giving change to a payer for an e-coin in an off-line setting. In this paper, we indicate how an off-line ecash system can solve the change-giving problem. In addition, our protocol provides the usual expected features of anonymity and unlinkability of the payer, but can reveal the identity of an individual who illegally tries to spend ecash twice