Discuss the role of public key authentication in the growth of e-commerce

Public key authentication was fundamental to the growth of e-commerce by establishing trust and security in online transactions. It provided mechanisms for verifying identities, ensuring data integrity, and maintaining confidentiality, which are crucial for any commercial activity.

Public Key Infrastructure (PKI), which underpins public key authentication, enabled:

• Secure Communication (SSL/TLS): Protocols like Secure Sockets Layer (SSL) and Transport Layer Security (TLS) rely on public key cryptography. They encrypt data exchanged between a user's browser and an e-commerce server. This ensures confidentiality for sensitive information such as credit card numbers during online purchases. Servers use digital certificates containing their public key. This allows users to authenticate the server's identity before transmitting data.
• Digital Signatures and Non-Repudiation: Public key cryptography facilitates digital signatures. A sender uses their private key to sign a transaction or document. The recipient verifies this signature with the sender's public key. This confirms the sender's identity and ensures data integrity. This process provides non-repudiation, preventing parties from denying a transaction. This is vital for legal and financial agreements in e-commerce.
• Identity Verification and Trust: Certificate Authorities (CAs) issue digital certificates. These certificates bind a public key to a specific identity. When users see a valid certificate from a trusted CA, they gain confidence in the identity of the e-commerce website. This foundational trust eliminated a significant barrier to consumer adoption of online shopping.

By providing these robust security features, public key authentication fostered a secure environment. This was essential for consumers and businesses to engage confidently in online transactions, thereby directly supporting the growth of e-commerce.