The traditional values of security in the ecommerce industry is based on mutual trust; the trust is honesty and also an obligation. EcomTech, (ecommerce technology) fueled by AI and advanced algorithms, empowers self-executing smart contracts and micro-payments with blockchain and cryptocurrency, respectively. Besides, exponential growth of IoT is prepared to disrupt the traditional ecommerce architectural landscape.
EcomTech is enhanced further with blockchain, relying on algorithms, smart contracts and smart network properties. Nonetheless, contemporary ecommerce architecture promotes cyber warfare among hackers, providers and consumers at state and individual cyber crime levels, vulnerable to lose billions of dollars every year across finance and ecommerce industries.
Cyberwar, progressive data protection and blockchain is all about data and consumer protection!
Payment Card Industry Data Security Standard (PCI DSS) is a global standard design initiated by credit card providers, developed and adopted widely to serve the ecommerce ecosystem. Hence, PCI DSS is a conducive environment to perform secure cyber transactions, to protect from cybercriminals and to embrace the protocols of cyber warfare if needed.
The PCI ecosystem constitutes: credit card payment systems such as POS, ATM, scanner or a swipe machine used at the front line; data input acceptance web interfaces for providers and consumers; transactions processing servers such as application and database servers serve at the backend; data transmission media such as WAN functions as data carrier; and storage of information such as encrypted data storage. Together, all facilitate, protect and maintain data integrity, confidentiality and availability.
The traditional PCI system is a centralized architect to link up ecommerce providers, consumers, issuing banks, sponsor banks, card processors and certificate authorities and verification entities. It is difficult to decouple PCI components off the entire IT eco-ecom-system; nevertheless, blockchain is expected to revolutionize it rapidly in the near future.
Cyber criminals always look for the lowest common denominators. Once the crypto key is compromised due to weak encryption algorithms, the cyber criminals can break administrative access to devices and POS devices, which leads to consumer payment card and information breach called side channel analysis.
Encrypting payment card details along with personnel information can be intensified by blockchain technology. Payment card data must be de-anonymized due to privacy issues, as well as to protect loss of financial data and assets.
In layman’s terms, cryptocurrency is a payment method regulator of EcomTech trading against Fiat currency. BTC is a unit of cryptocurrency, whereas Satoshi is one hundred millionth of BTC.
Technically, cryptocurrency is an application backboned by blockchain technology. The cryptocurrency constitutes a digital wallet with a public key known to everyone, whereas a payee is required private keys to use hashed value. In the case of private keys that are compromised, the digital wallet gets emptied.
Blockchain is a distributed tamper-proof ledger where each transaction details are recorded and synced up across global databases. Nodes in the distributed network maintain their own copy of the ledger, and hashed data are verified and shared among others, thus it is highly tamper-proof at a database level.
The protocol for writing crypto transactions to the ledger is governed by programmable open source software and developers’ input. The protocol uses well-established, public security primitives and data structures or hashed values, such as SHA256 hashes, Elliptic Curve Asymmetric Cryptography and Merkle trees. Future quantum-processors are expected to push for increasing the size of encryption algorithms.
EcomTech can utilize both public and private blockchain methodologies along with identity verification and management. For instance, bitcoin trading does not require identity information of their trading parties as it is public blockchain trading systems. The trust is achieved with agreed encryption and digital certificate exchanges. For each transaction, encryption or a hashed value is used and updated to the blockchain ledger.
In the case of a private blockchain system, the goal is to set up a private network for known participants or within members of a group. Participants’ identities are important for identification. Anonymizer is not necessary in this case – for instance, a beauty retailer portal where traders know each other’s identities as they are already registered and trusted members verified by the business. They can trade products with bitcoin micropayment that is managed and linked to public blockchain, and the beauty retailer business delivers the items to the buyer.
However, rules of engagement are most important here, as the transaction can be embedded within a smart contract with rules that payment can be transferred from buyer to seller, and the delivery service sends a receipt to the trusted blockchain. The recorded transaction receipt can be viewed by the seller, buyer and transporter. The recorded transaction receipt or details can also be viewed by regulators, police and fraudulent department in case of transaction dispute. The beauty retailer performs a pre-identification verification process, such as bank account details interlinked to bank blockchain or a passport interlinked to USCIS or a license interlinked to DMV blockchain database, respectively. From a scalability perspective, cloud-based Azure blockchain as a service may come in effect for this process.
Without a doubt, a blockchain technology EcomTech revolution is inevitable. In some cases, current payment systems cannot be decoupled due to adhesive regulations, laws, obligations and mutual vendor profit objectives to protect fee for services.
Blockchain can provide strong authenticity by providing smart contracts and hashed value chaining techniques. Regulators, government and PCI providers must adopt smart blockchain technology to protect consumers and industrialize the PCI industry.
A new era of EcomTech has begun – one that will discourage cybercriminals and considerably reduce cyber warfare.
Additional information related to this topic and cybersecurity jobs can be found here.
Article written by Bip Khanal
Image credit by Getty Images, Cultura, Andrew Brookes
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