Digital Signatures in E-Trade: Cyber Law Implications

Cyber Law Case Study: E-Trade Digital Signatures

Case Scenario: E-Trade Signature Challenge

• In an E-trade agreement, the signature relies exclusively on asymmetric methods or techniques.
• This scenario is described as a special "door" that can only be opened with a four-key lock.
• It is certain that the "door" can only be opened when all four keys are present.

Fundamentals of Cyber Law

• Cyber Law is the legal framework governing cyberspace.
• Cyberspace is a broad term encompassing computers, networks, software, data storage devices (e.g., hard disks, USB drives), the Internet, websites, emails, and electronic devices like cell phones and ATM machines.
• Law encompasses rules of conduct approved by the government, enforced within a specific territory, and binding upon all persons within that territory.
• Violation of these rules can lead to government action, such as imprisonment, fines, or orders to pay compensation.

Challenges in Digital Signature Verification

• Both parties stand on opposite sides of the "door," each possessing different keys.
• One key aligns with the other party's key, as they have agreed on its shape and notches (the public key).
• However, the other key does not align, and neither party knows the exact notches of the other key.
• The critical challenge remains: the "door" can only be opened when all four keys are present.

Resolving Digital Signature Issues

• An Asymmetric Crypto System refers to a secure key pair system, comprising a private key for digital signature creation and a public key for verification.
• A Certifying Authority (CA) is a person licensed under Section 24 of the Information Technology Act, 2000, to issue Electronic Signature Certificates.
• This case highlights the role of public keys that are required to open the "door."
• Cybersecurity involves protecting information, equipment, devices, and stored data from unauthorized modification.
• This case is intrinsically linked to Cyber Law, as its resolution relies on electronic mediums.
• Electronic Signatures are considered reliable and are specified in the Second Schedule [of the Information Technology Act, 2000].
• Reliability of an electronic signature depends on the signature creation data or authentication data at the time of signing.
• The Central Government may specify authentication techniques.
• The use of Electronic Signatures, particularly digital signatures with public keys, ensures that both parties can open the "door" only when all four keys are present.