Secure Payments

[ http://csci-1022.wikidot.com/virtual/ virtual worlds]

stereophonic-security.jpg

Secure Payments refers to the mechanisms which are used to protect personal data and prevent theft.

  • Easy to use
  • Minimalized
  • Website or app based
  • No longer specialized (no needed software)
  • Systems available from any device connected to the internet

Simple preventive measures:

  • Look for a padlock symbol in your browser window.
  • The website address should also begin with ‘https://’
  • If you get a warning about a problem with a “Certificate” or that the certificate cannot be trusted, do not submit any confidential information to such websites. They are most likely fake and intended to defraud.

History of Secure Payments

  • Internet founded in 1969 with ARPANET, the military network which was intended to be communication network in the Vietnam War era.
  • Stanford Federal Credit Union was established in 1994 – the first financial institution which offered online internet banking services to all of its members.
  • Millicent (founded in 1995), ECash or CyberCoin (both in 1996), The majority of the first online services were using micropayment systems and their common attribute was the attempt to implement the electronic cash alternatives (such as e-money, digital cash or tokens).
  • Amazon is founded (one of the e-commerce pioneers) in 1994.
  • Facebook Is launched in 2004, these networks incorporate secure payments that millions of people use.

Properties of secure payment:
Key features of secure payment
Secure payment is an encryption software. It has the ability of fraud detection software. Here are some simple ways to check if your page is secure: First, check to see if SSL listing under properties of the page. Second, check to see if the URL showing HTTPS

  • Secure payment: A secure website uses encryption technology to ensure that data that is passed between you is kept confidential.

[1a]

Risk of insured payment[2a]
In case of conducting an insecure payment Mis-use or interception of your credit card details. People with your transaction information could let you getting charged for goods or services that you did not purchase, not receiving goods you have purchased, unacceptable delays, receiving goods other than what you paid for. Poor after sales service.

Qualities of Blockchain:
Blockchain allows users to monitoring transaction without central record keeping. The chain of record is unbreakable and allow to be downloaded by any user. A Node is a computer connected to the transaction network, whichever first process the transaction will solve the block and receive reward and all transaction is immutable.

Benefits of Blockchain[3a]
Blockchain transforms the mechanism of secure payment. Its main advantage is decentralization: from central regulation to independent clients. But it also has issues with the processing mechanism, large corporation monopolizing node processing. The transaction is also an immutable payment, lack of consumer rights protection[4a]

Cryptocurrencies-Intro
They are virtualized currencies that in some ways acts as if it is a text or email. It is usually not backed by some sort of central entity or central bank. It runs on a peer to peer network that is globally run by checks and balances
Meaning that everyone has the ability to view what transactions go where. They are maintained via “maintainers” the role is taken up by people who solve math problems that check to see if the encryption algorithms are correct; meaning that when people send coins they have their own private keys that gets encrypted, the people who decrypt it are the ones who maintain the leaguers. The “maintainers” are the people who are often referred to as miners.
Miners get money from the fees that people pay and they also discovered them from finding new parts of the algorithms that the computers are looking into. [1.C] This provides an avenue for new experiences. One application could mean that virtual world could potentially get a virtual plugin that maintains the whole presence of virtual worlds. Imagine having an avatar that has their own virtual wallet that is linked to real bitcoin. This would bring a whole new realistic feel to someone who is interacting with one of these programs

History!
History!
1998 – 2009 The pre-Bitcoin years
2008 The Mysterious Mr. Nakamoto
2009 Bitcoin begins
2010 Bitcoin is valued for the first time
2011 Rival cryptocurrencies emerge
2013 Bitcoin price crashes
2014 Scams and theft
2016 Ethereum and ICOs
2017 cell-cont
2018 The bubble kind of burst

[2.C]

Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes and economic bubbles, such as housing market bubbles.The more people who buy into the concept down the line, the more that the individuals at the top make, hence the closely related pyramid-scheme synonym. [3.C][4.C]

According to one study[5.C] from Jan Lansky, a Finance and Administration professor,
The European Banking Authority (2014) defined 70 risks, divided into several categories based on who or what is threatened by them. The threatened groups include: (A) users of cryptocurrencies for business transactions, (B) users of cryptocurrency repository services or cryptocurrency exchange offices, (C) financial integrity, including money laundering and other crime, (D) existing payment systems, (E) regulatory authorities

There are plenty of skeptics of cryptocurrencies, for example, according to David Polar[6.C], an industry thought leader - sums up what cryptocurrencies could actually be,

“In a similar fashion, cryptocurrencies are minting millionaires and billionaires because they are convincing down-the-line participants that there is easy money at the end of the rainbow. The newness and complex technical nature of cryptocurrency masks a multilevel-marketing strategy we have seen perpetuated throughout history—except instead of slinging beauty products or protein powders, we’re now buying invisible coins.”
[3.C]

Benefits of Cryptocurrency

Benefits-of-Cryptocurrency.jpg

⦁ Fraud-When a cryptocurrency transfer is authorized; it can’t be reversed as in the case of the “charge-back” transactions allowed by credit card companies.

⦁ Identity Theft-Cryptocurrency uses a “push” mechanism that allows the holders to send exactly what he or she wants to the merchant or recipient with no further information.

⦁ Reduced Fees-Since the data miners that do the number crunching which generates Bitcoin and other cryptocurrencies is compensated from the cryptocurrency network, therefore there are no other fees generated.

⦁ Accessibility- The cryptocurrencies are highly accessible since there are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to the traditional exchange, and these people are the potential customers for the Cryptocurrency market. [1b]

⦁ Immediate Settlement-According to financial analyst Gallippi, Bitcoin and other cryptocurrencies are, in many ways, like a “large property rights database”, which can be used to execute and enforce two-party contracts on commodities like automobiles or real estate. It may also be used to facilitate specialist modes of transfer.
-For example, cryptocurrency contracts can be designed to add third party approvals, make reference to external facts, or be completed at a specified date or time in the future. And since you as the cryptocurrency holder have exclusive access to your account, the time and expense generated in transfers can be minimized. [2b]

⦁ International Trade- Cryptocurrencies by their nature are not subject to the exchange rates, interest rates, transactions charges, or other taxes imposed by a specific country. Also, by using the peer-to-peer mechanism of the blockchain technology, cross-border transfers and transactions may be conducted without complications over currency exchange fluctuations, and the like.

Cryptocurrency Case Study

The Global Cryptocurrency Benchmarking Study (2017) found that:

⦁ Cryptocurrencies market has become a greater market in the past two years. (Total capitalization has increased 3 times since early 2016.)[3b]

⦁ The estimated number of unique active users of cryptocurrency wallets has grown significantly since 2013 to between 2.9 million and 5.8 million today

⦁ Although the international trade today is still dominated by four reserve currencies, cryptocurrencies gradually gained their places. [4b]

Bibliography:
A:
[1] Webcache.googleusercontent.com. (2018). Secure Payments Online - Make IT Secure. [online] Available at: http://webcache.googleusercontent.com/search?q=cache:http://www.makeitsecure.org/en/secure-payments-online.html [Accessed 5 Apr. 2018].
[2] Dharma Merchant Services. (2018). What is a secure payment page? - Dharma Merchant Services. [online] Available at: https://dharmamerchantservices.com/faq/what-is-a-secure-payment-page/ [Accessed 5 Apr. 2018].
[3] BBC WebWise. (2018). How to shop safely and securely online. [online] Available at: http://www.bbc.co.uk/webwise/0/22728224 [Accessed 5 Apr. 2018].
[4] Google.com. (2018). unsecured payment - Google Search. [online] Available at: https://www.google.com/search?q=unsecured+payment&rlz=1C5CHFA_enUS712US712&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiOsIbI_aLaAhVNzFMKHWQMAcQQ_AUIDSgE&biw=1422&bih=781#imgrc=FVsXRqh4CK2jyM: [Accessed 5 Apr. 2018].

B:
[1] Rosic, Ameer. “7 Incredible Benefits Of Cryptocurrency.” The Huffington Post, TheHuffingtonPost.com, 7 Dec. 2017, www.huffingtonpost.com/ameer-rosic-/7-incredible-benefits-of-_1_b_13160110.html.
[2] Spencer, J. (2017, November 02). The Risks and Benefits of Digital Currency. Retrieved April 05, 2018, from https://www.entrepreneur.com/article/302778
[3] Hileman, Garrick, and Michel Rauchs. “2017 Global Cryptocurrency Benchmarking Study.” SSRN Electronic Journal, 2017, doi:10.2139/ssrn.2965436
[4] Gavril, Matei. “The Financial Revolution And The Many Benefits It Brings: Cryptocurrency & Blockchain Technology.” Forbes, Forbes Magazine, 15 Nov. 2017, www.forbes.com/sites/forbescommunicationscouncil/2017/11/15/the-financial-revolution-and-the-many-benefits-it-brings-cryptocurrency-blockchain-technology/#634a079c3cc0.

C:
[1]. CryptoCurrency Facts. (2018). How Does Cryptocurrency Work? - CryptoCurrency Facts. [online] Available at: https://cryptocurrencyfacts.com/how-does-cryptocurrency-work-2/ [Accessed 29 Mar. 2018].

[2]. Marr, B. (2017). A Short History Of Bitcoin And Cryptocurrency Everyone Should Read. Forbes.com. Retrieved 3 April 2018, from https://www.forbes.com/sites/bernardmarr/2017/12/06/a-short-history-of-bitcoin-and-crypto-currency-everyone-should-read/3/#4a31eac161c7

[3]. Polgar, David. "Cryptocurrency is a giant multi-level marketing scheme". QZ.com. Quartz Media LLC. Retrieved 2 April, 2018.

[3]. Analysis of Cryptocurrency Bubbles Archived 2018-01-24 at the Wayback Machine.. Bitcoins and Bank Runs: Analysis of Market Imperfections and Investor Hysterics. Social Science Research Network (SSRN). Accessed 24 December 2017

[4]. McCrum, Dan, "Bitcoin's place in the long history of pyramid schemes", www.ft.com, 10 Nov 2015, archived from the original on 2017-03-23

[5]. Lansky, J. (2018). Possible State Approaches to Cryptocurrencies. Journal Of Systems Integration, 9(1), 19-31. http://dx.doi.org/10.20470/jsi.v9i1.335

[6]. David Ryan Polgar | Tech Ethicist | Speaker. (2018). David Ryan Polgar. Retrieved 20 April 2018, from https://www.davidpolgar.com/

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