--- begin forwarded text Date: Wed, 03 Nov 1999 13:20:58 -0800 To: [EMAIL PROTECTED] From: Steve Schear <[EMAIL PROTECTED]> Subject: Fwd: "Digital Cash Pioneer Promoting Universal Card Payments System" Sender: <[EMAIL PROTECTED]> List-Subscribe: <mailto:[EMAIL PROTECTED]> >> Friday, October 29, 1999 >> >> Digital Cash Pioneer Promoting Universal Card >> Payments System >> By Jeffrey Kutler >> >> David Chaum, who gained fame as the inventor of a >> digital cash system for the Internet, is taking up >> the cause of credit cards. >> >> Not content to wait for electronic wallet technology >> to be perfected, Mr. Chaum is proposing a way for >> any cardholder to pay any merchant anywhere on the >> World Wide Web without having to worry about >> software compatibility. >> >> In keeping with Mr. Chaum's renown as a cryptologist >> and advocate of privacy, he says his method is >> replete with security measures and anonymity options >> on multiple levels. Given that he wants to stimulate >> credit card usage and perhaps enter into cooperative >> relationships with banks, Mr. Chaum said he is >> optimistic that his system will catch on in ways >> that the technically elegant but commercially >> premature E-cash system, which brought him notoriety >> earlier in the decade, did not. >> >> Mr. Chaum said he learned from his struggles after >> founding now-defunct Digicash Inc. nine years ago >> that "it's all about deployment and adoption." His >> patented E-cash could have been accessible at >> virtually any personal computer, but it was useless >> without merchant acceptance. >> >> "My view is, you have to get to all merchants," Mr. >> Chaum said in an interview. "The only definition of >> money is ubiquity," and he said the virtual wallet >> proposals from computer and software vendors fall >> far short of that. >> >> He would create ubiquity for secure credit card >> transactions by serving as a trusted intermediary >> between buyers and sellers. A consumer who might be >> hesitant to "pull the trigger" on an on-line >> purchase -- a common outcome even at reputable >> "e-tailing" sites because of security and privacy >> fears -- could go to Mr. Chaum's Web site for peace >> of mind. >> >> His system would not just authorize or verify the >> cardholder. It would generate a one-time card >> number, using the standard 16-digit format, >> specifically for that transaction. Even if it were >> compromised -- which Mr. Chaum said is next to >> impossible because of a multiple-computer >> configuration with requisite cryptographic >> safeguards -- the card number's uniqueness would >> stifle any attempt at illicit use or re-use. >> >> More to the point of what he is trying to >> accomplish, the account number would be transferred >> with relative ease to the merchant's order form, >> regardless of the technology employed. Both sides in >> the transaction are assured of the payment's >> validity, even if the cardholder is a stickler for >> privacy, is buying a digital commodity such as >> software, and does not want to provide a mailing >> address to the seller. >> >> Mr. Chaum hinted that he is shopping his brainchild >> around to banks and other companies, but he would >> not be specific about any progress he is making. He >> said the revenue -- or revenue-sharing -- >> propositions could vary according to desired >> business model or "scenario." Fees could be >> collect > >__________________________________________________ >Do You Yahoo!? >Bid and sell for free at http://auctions.yahoo.com --- end forwarded text ----------------- Robert A. Hettinga <mailto: [EMAIL PROTECTED]> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
