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Digital Certificates - Legal Aspects of E-Commerce | E-Commerce - B Com PDF Download

Digital Certificate:

  • It is an electronic document used to prove ownership of a public key. The certificate includes information about the key, information about its owner's identity, and the digital signature of an entity that has verified the certificate's contents are correct. If the signature is valid, and the person examining the certificate trusts the signer, then they know they can use that key to communicate with its owner.
  • The most common use of a digital certificate is to verify that a user sending a message is who he or she claims to be, and to provide the receiver with the means to encode a reply. An individual wishing to send an encrypted message applies for a digital certificate from a Certificate Authority (CA). The CA issues an encrypted digital certificate containing the applicant's public key and a variety of other identification information. The CA makes its own public key readily available through print publicity or perhaps on the Internet. 
  • The recipient of an encrypted message uses the CA's public key to decode the digital certificate attached to the message, verifies it as issued by the CA and then obtains the sender's public key and identification information held within the certificate. With this information, the recipient can send an encrypted reply.
  • The most widely used standard for digital certificates is X.509. 


Contents Of a Typical Digital Certificate:

  • Serial Number: Used to uniquely identify the certificate.
  • Subject: The person, or entity identified.
  • Signature Algorithm: The algorithm used to create the signature.
  • Signature: The actual signature to verify that it came from the issuer.
  • Issuer: The entity that verified the information and issued the certificate.
  • Valid-From: The date the certificate is first valid from.
  • Valid-To: The expiration date.
  • Key-Usage: Purpose of the public key (e.g. encipherment, signature, certificate signing...).
  • Public Key: The public key.
  • Thumbprint Algorithm: The algorithm used to hash the public key certificate.
  • Thumbprint (also known as fingerprint): The hash itself, used as an abbreviated form of the public key certificate.
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FAQs on Digital Certificates - Legal Aspects of E-Commerce - E-Commerce - B Com

1. What is a digital certificate and why is it important in e-commerce?
Ans. A digital certificate is a digital document that verifies the authenticity and integrity of an entity or user in e-commerce. It is issued by a trusted third party, called a Certificate Authority (CA). Digital certificates play a crucial role in e-commerce by ensuring secure communication, establishing trust between parties, and enabling the use of encryption technologies to protect sensitive information.
2. How does a digital certificate work in e-commerce transactions?
Ans. In e-commerce transactions, a digital certificate acts as a digital passport for users and entities. When a user initiates a transaction, their digital certificate is used to authenticate their identity and establish a secure connection with the server. The digital certificate contains the user's public key, which is used for encryption and digital signatures, ensuring confidentiality and integrity of the data exchanged during the transaction.
3. What legal aspects are associated with digital certificates in e-commerce?
Ans. Digital certificates in e-commerce have several legal aspects. Firstly, they provide legal recognition of the identity and authenticity of the parties involved in a transaction. Secondly, they help establish the non-repudiation of transactions, ensuring that parties cannot deny their involvement. Lastly, digital certificates are subject to legal regulations and standards, such as the Electronic Signatures in Global and National Commerce Act (ESIGN Act) in the United States, which provide legal validity to electronically signed documents.
4. How can digital certificates protect against fraud in e-commerce?
Ans. Digital certificates provide protection against fraud in e-commerce by utilizing encryption and digital signatures. Encryption ensures that sensitive information, such as credit card details, is securely transmitted and can only be decrypted by the intended recipient. Digital signatures, on the other hand, verify the integrity and authenticity of the data exchanged, making it difficult for fraudsters to tamper with or impersonate the parties involved in the transaction.
5. What are the potential legal risks associated with the use of digital certificates in e-commerce?
Ans. The use of digital certificates in e-commerce poses certain legal risks. One potential risk is the compromise of private keys associated with the digital certificates, which can lead to unauthorized access and misuse of sensitive information. Another risk is the reliance on the trustworthiness of Certificate Authorities, as their improper issuance or revocation of digital certificates can have legal implications. Additionally, legal disputes may arise regarding the validity and enforceability of digitally signed documents, requiring courts to interpret and apply relevant laws.
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