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:
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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:
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:
the final text of the new U.S. Encryption Regulations you will find under:
an explanation of the regulations can be found under:
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Intellectual property, very generally, relates to the output that result from intellectual activity in the industrial, scientific, literary and artistic fields. Traditionally intellectual property is divided into two branches: 1) industrial property (
Founded by Bill Gates and Paul Allen and headquartered in Redmond, USA, Microsoft Corporation is today's world-leading developer of personal-computer software systems and applications. As MS-DOS, the first operating system released by Microsoft, before, Windows, its successor, has become the de-facto standard operating system for personal computer. According to critics and following a recent court ruling this is due to unfair competition.
For more detailed information see the Encyclopaedia Britannica: