How does the Secure Electronic Transaction (SET) protocol ensure secure online transactions?

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How does the Secure Electronic Transaction (SET) protocol ensure secure online transactions?

The Secure Electronic Transaction (SET) protocol ensures secure online transactions through a combination of encryption, digital certificates, and authentication mechanisms.

Firstly, SET uses encryption to protect the confidentiality of sensitive information such as credit card numbers and personal details. This is achieved by encrypting the data using strong cryptographic algorithms, ensuring that only authorized parties can access and understand the information.

Secondly, SET relies on digital certificates to establish the authenticity and integrity of the involved parties. Digital certificates are issued by trusted third-party certification authorities and contain information about the identity of the parties involved in the transaction. These certificates are used to verify the identity of the merchant and the customer, ensuring that they are who they claim to be.

Additionally, SET employs authentication mechanisms to further enhance security. This includes the use of passwords, PINs, or biometric authentication methods to verify the identity of the customer. By requiring strong authentication, SET reduces the risk of unauthorized access to sensitive information.

Furthermore, SET incorporates a dual-key encryption system, where the customer's payment information is encrypted using the merchant's public key, and the merchant's payment authorization is encrypted using the customer's public key. This ensures that only the intended recipient can decrypt and access the information, providing an additional layer of security.

Moreover, SET includes a digital signature mechanism to ensure the integrity of the transaction. Digital signatures are used to verify that the transaction data has not been tampered with during transmission. This helps prevent unauthorized modifications to the transaction details, providing assurance that the transaction is genuine and trustworthy.

Overall, the SET protocol combines encryption, digital certificates, authentication mechanisms, dual-key encryption, and digital signatures to ensure secure online transactions. By employing these security measures, SET minimizes the risk of data breaches, identity theft, and fraudulent activities, providing a robust framework for secure e-commerce transactions.