Advertisement

An efficient micropayment system based on probabilistic polling

  • Stanisław Jarecki
  • Andrew Odlyzko
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 1318)

Abstract

Existing software proposals for electronic payments can be divided into “on-line” schemes that require participation of a trusted party (the bank) in every transaction and are secure against overspending, and the “off-line” schemes that do not require a third party and guarantee only that overspending is detected when vendors submit their transaction records to the bank (usually at the end of the day). We propose a new hybrid scheme that combines the advantages of both of the above traditional design strategies. It allows for control of overspending at a cost of only a modest increase in communication compared to the off-line schemes. Our protocol is based on probabilistic polling. During each transaction, with some small probability, the vendor forwards information about this transaction to the bank. This enables the bank to maintain an accurate approximation of a customer's spending. The frequency of polling messages is related to the monetary value of transactions and the amount of overspending the bank is willing to risk.

The probabilistic polling model creates a natural spectrum bridging the existing on-line and off-line electronic commerce models. For transactions of high monetary value, the cost of polling approaches that of the on-line schemes, but for micropayments, the cost of polling is a small increase over the traffic incurred by the off-line schemes.

Keywords

Communication Cost Polling Mechanism Probabilistic Polling Electronic Payment Alert Message 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. [AMS96]
    R. Anderson, C. Manifavas, and C. Sutherland. Netcard-a practical electronic cash system. In Fourth Cambridge Workshop on Security Protocols. Springer Verlag, Lecture Notes in Computer Science, April 1996. http://www.cl.cam.ac.uk/ users/ rja14/.Google Scholar
  2. [BGH+95]
    M. Bellare, J. Garay, R. Hauser, A. Herzberg, H. Krawczyk, M. Steiner, G. Tsudik, and M. Waidner. iKP-a family of secure electronic payment protocols. In First USENIX Workshop on Electronic Commerce, New York, 1995. http://www.zurich.ibm.com/Technology/Security/extem/ecommerce/.Google Scholar
  3. [GMA+95]
    S. Glassman, M. Manasse, M. Abadi, P Gauthier, and P Sobalvarro. The millicent protocol for inexpensive electronic commerce. In Proc. 4th International World Wide Web Conference, 1995. http://www.research.digital.com/SRC/millicent.Google Scholar
  4. [GS96]
    E. Gabber and A. Silberschatz. Agora: A minimal distributed protocol for electronic commerce. In Second USENIX Workshop on Electronic Commerce, pages 223–232, Oakland, California, November 1996.Google Scholar
  5. [HSW96]
    R. Hauser, M. Steiner, and M. Waidner. Micro-payments based on ikp. In 14th Worldwide Congress on Computer and Communications Security Protection, June 1996. http://www.zurich.ibm.com/Technology/Security/publications/1996/HSW96-new.ps.gz.Google Scholar
  6. [JY96]
    C. Jutla and M. Yung. Paytree: “amortized signature” for flexible micropayments. In Second USENIX Workshop on Electronic Commerce, November 1996.Google Scholar
  7. [NM95]
    Clifford Neuman and Gennady Medvinsky. Requirements for network payment: The netcheque perspective. In Proc. of IEEE COMPCON, March 1995. ftp://prospero.isi.edu/pub/papers/security/netcheque-requirements-compcon95.ps.Z.Google Scholar
  8. Ped96]
    T. Pedersen. Electronic payments of small amounts. In Fourth Cambridge Workshop on Security Protocols. Springer Verlag, Lecture Notes in Computer Science, April 1996. Tech report: DAIMI PB-495, Computer Science Department, Aarhus University, August 1995.Google Scholar
  9. [RS96]
    R. Rivest and A. Shamir. Payword and micromint: Two simple micropayment schemes. In Fourth Cambridge Workshop on Security Protocols. Springer Verlag, Lecture Notes in Computer Science, April 1996. http:// theory.lcs.mit.edu/~rivest/publications.html.Google Scholar
  10. [Yac97]
    Y. Yacobi. On the continuum between on-line and off-line e-cash systems. In R. Hirschfeld, editor, Financial Cryptography, Anguilla, West Indies, February 1997. Springer Verlag, Lecture Notes in Computer Science.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1997

Authors and Affiliations

  • Stanisław Jarecki
    • 1
  • Andrew Odlyzko
    • 2
  1. 1.MIT Laboratory for Computer ScienceCambridgeUSA
  2. 2.AT&T Labs - ResearchUSA

Personalised recommendations