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E-Commerce and E-Business

3. Signature Verifying Algorithm: This either accepts or rejects the message’s claim to authenticate
using a message, public key, and signature.

Electronic records authentication can be effected by using asymmetric crypto system and hash function,
which envelops and transforms the first electronic record into another electronic record. Any person
using the public key of the subscriber can verify the electronic record. The private and public keys are
unique to the subscriber and constitute a functioning key pair. The concept is similar to the locker key.
You have the ‘private key’ while the bank manager will have the ‘public key’. The locker cannot be
opened unless both the keys are used together.
If the concerned parties agree to the application of the security procedure, then the digital signature
affixed can be verified to be:
1. Unique to the subscriber affixing it

2. Capable of recognizing such subscriber
3. Created in a manner that is under the exclusive control of the subscriber. It is linked to the
electronic record to which it relates in such a manner that if the electronic record is changed then
the digital signature will become invalid.
Such digital signature will be deemed to be a secure digital signature. The digital signature will be
certified by the Certifying Authority. The Certified Authority is licensed, supervised, and controlled by
the Controller of Certifying Authorities.

Laws of different countries give different authentication standards, sometimes indicating a clear
technology bias, which should be inter-operable to facilitate cross-border transactions.

Did you know? In 1984, Silvio Micali, Shafi Goldwasser, and Ronald Rivest were the first to define the
security needs of digital signature schemes.

An e-commerce company, which uses PKI authentication technology for its online
contracts with Indian consumers, can use different forms of technology while
getting into online contracts with the consumers in other countries.

10.2 Laws for E-Commerce in India
A number of e-commerce laws and guidelines will have to be followed while operating in the e-
commerce world. E-Commerce laws give you a chance to succeed with the online selling and make you
aware of the fraudsters on the Internet to ensure more security for the operating companies. These laws
are relevant and will go a long way towards helping shopping cart companies to survive and be
profitable.
10.2.1 Cyber Laws in India
When the Internet was developed, no one would have realized that the Internet could change itself into
an all-pervading revolution, which could be misused for criminal activities and which would require
regulation. The anonymous nature of the Internet is responsible for the variety of criminal activities,
because of which, people with intelligence have been trying to perpetuate criminal activities in
cyberspace. Hence, cyber laws were introduced in India. Cyber law is vital because it touches all the
aspects of transactions and activities pertaining to the Internet, World Wide Web (WWW), and
Cyberspace.
Every action and reaction in cyberspace will have some legal and cyber legal perspectives. Cyber law
issues are involved everywhere, from the time you register the domain name, the setup of the Web site,
and to the point when you conduct electronic commerce transactions on the site.

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