How does the Secure Electronic Transaction over Transport Layer Security (SET/TLS) ensure secure online transactions?

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How does the Secure Electronic Transaction over Transport Layer Security (SET/TLS) ensure secure online transactions?

Secure Electronic Transaction over Transport Layer Security (SET/TLS) ensures secure online transactions through a combination of encryption, authentication, and integrity mechanisms.

Firstly, SET/TLS utilizes encryption to protect the confidentiality of the data transmitted during online transactions. It employs symmetric encryption algorithms, such as Advanced Encryption Standard (AES), to encrypt the data being exchanged between the client and the server. This ensures that even if an attacker intercepts the data, they cannot decipher its contents without the encryption key.

Secondly, SET/TLS provides authentication mechanisms to verify the identities of the parties involved in the transaction. It uses digital certificates issued by trusted Certificate Authorities (CAs) to authenticate the server's identity. This prevents attackers from impersonating the server and conducting fraudulent transactions. Additionally, client-side authentication can also be implemented using client certificates, further enhancing the security of the transaction.

Furthermore, SET/TLS ensures the integrity of the data being transmitted. It uses cryptographic hash functions, such as SHA-256, to generate a unique hash value for each data packet. This hash value is then encrypted using the sender's private key, creating a digital signature. The recipient can verify the integrity of the data by decrypting the digital signature using the sender's public key and comparing it with the calculated hash value. If they match, it ensures that the data has not been tampered with during transmission.

In addition to encryption, authentication, and integrity mechanisms, SET/TLS also provides protection against replay attacks. It includes a timestamp in each data packet, preventing attackers from intercepting and retransmitting the same data to perform unauthorized transactions.

Overall, the combination of encryption, authentication, integrity mechanisms, and protection against replay attacks in SET/TLS ensures secure online transactions by safeguarding the confidentiality, authenticity, and integrity of the data exchanged between the client and the server.