Governmental Influence

Agencies like the NSA are currently able to eavesdrop on anyone with few restrictions only - though other messages are spread by the NSA.
Theoretically cryptography can make that difficult. Hence those agencies speak up for actions like introducing trapdoors to make it possible to get access to everybody's data.

See the U.S. discussion about the Clipper Chip some years ago:
http://www.epic.org/crypto/clipper/
http://www.cdt.org/crypto/admin/041693whpress.txt

While encryption offers us privacy for the transmission of data, we do not only wish to have it but also need it if we want to transport data which shall not be seen by anyone else but the recipient of our message. Given this, the governments and governmental institutions/organizations fear to lose control. Strict laws are the consequence. The often repeated rumor that the Internet was a sphere of illegality has been proven wrong. Some parts are controlled by law very clearly. One of them is cryptography. Prohibition of cryptography or at least its restriction are considered an appropriate tool against criminality. Or one should say: had been considered that. In the meantime also governmental institutions have to admit that those restrictions most of all work against the population instead against illegal actors. Therefore laws have been changed in many states during the last five years. Even the USA, the Master of cryptography-restriction, liberated its laws in December 1999 to be more open-minded now.

for an insight into the discussion having gone on for years see:
http://www.cdt.org/crypto/new2crypto/3.shtml

the final text of the new U.S. Encryption Regulations you will find under:
http://www.cdt.org/crypto/admin/000110cryptoregs.shtml
http://www.cdt.org/crypto/admin/000114cryptoregs.txt

an explanation of the regulations can be found under:
http://www.cdt.org/crypto/admin/000112commercefactsheet.shtml

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2000 A.D.

2000
Convergence of telephony, audiovisual technologies and computing

Digital technologies are used to combine previously separated communication and media systems such as telephony, audiovisual technologies and computing to new services and technologies, thus forming extensions of existing communication systems and resulting in fundamentally new communication systems. This is what is meant by today's new buzzwords "multimedia" and "convergence".

Classical dichotomies as the one of computing and telephony and traditional categorizations no longer apply, because these new services no longer fit traditional categories.

Convergence and Regulatory Institutions

Digital technology permits the integration of telecommunications with computing and audiovisual technologies. New services that extend existing communication systems emerge. The convergence of communication and media systems corresponds to a convergence of corporations. Recently, America Online, the world's largest online service provider, merged with Time Warner, the world's largest media corporation. For such corporations the classical approach to regulation - separate institutions regulate separate markets - is no longer appropriate, because the institutions' activities necessarily overlap. The current challenges posed to these institutions are not solely due to the convergence of communication and media systems made possible by digital technologies; they are also due to the liberalization and internationalization of the electronic communications sector. For regulation to be successful, new categorizations and supranational agreements are needed.
For further information on this issue see Natascha Just and Michael Latzer, The European Policy Response to Convergence with Special Consideration of Competition Policy and Market Power Control, http://www.soe.oeaw.ac.at/workpap.htm or http://www.soe.oeaw.ac.at/WP01JustLatzer.doc.

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Digital Signatures, Timestamps etc

Most computer systems are far from being secure.
A lack of security - it is said - might hinder the developments of new information technologies. Everybody knows electronic transactions involve a more or less calculated risk. Rumors about insecurity let consumers doubt whether the commodity of e-commerce is bigger or its risks. First of all the market depends on the consumer's confidence. To provide that another application for public key cryptography gets essential: the digital signature, which is used to verify the authenticity of the sender of certain data.
It is done with a special private key, and the public key is verifying the signature. This is especially important if the involved parties do not know one another. The DSA (= Digital Signature Algorithm) is a public-key system which is only able to sign digitally, not to encrypt messages. In fact digital signature is the main-tool of cryptography in the private sector.

Digital signatures need to be given for safe electronic payment. It is a way to protect the confidentiality of the sent data, which of course could be provided by other ways of cryptography as well. Other security methods in this respect are still in development, like digital money (similar to credit cards or checks) or digital cash, a system that wants to be anonymous like cash, an idea not favored by governments as it provides many opportunities for money laundry and illegal transactions.

If intellectual property needs to be protected, a digital signature, together with a digital timestamp is regarded as an efficient tool.

In this context, the difference between identification and authentication is essential. In this context smartcards and firewalls are relevant, too.

A lot of digital transactions demand for passwords. More reliable for authentication are biometric identifiers, full of individual and unrepeatable codes, signatures that can hardly be forged.

For more terms of cryptography and more information see:
http://poseidon.csd.auth.gr/signatures
http://www.dlib.org/dlib/december97/ibm/12lotspiech.html
http://www.cryptography.com/technology/technology.html
http://www.cdt.org/crypto/glossary.shtml
http://www.oecd.org//dsti/sti/it/secur/prod/GD97-204.htm

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Sputnik

At the beginning of the story of today's global data networks is the story of the development of satellite communication.

In 1955 President Eisenhower announced the USA's intention to launch a satellite. But it was the Soviet Union, which launched the first satellite in 1957: Sputnik I. After Sputnik's launch it became evident that the Cold War was also a race for leadership in the application of state-of-the-art technology to defence. As the US Department of Defence encouraged the formation of high-tech companies, it laid the ground to Silicon Valley, the hot spot of the world's computer industry.

In the same year the USA launched their first satellite - Explorer I - data were transmitted over regular phone circuits for the first time, thus laying the ground for today's global data networks.

Today's satellites may record weather data, scan the planet with powerful cameras, offer global positioning and monitoring services, and relay high-speed data transmissions. But up to now, most satellites are designed for military purposes such as reconnaissance.

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