Overview of basic concepts BMEHIT（基本概念BMEHIT的概述）.pdfVIP

Electronic payment systems overview of basic concepts credit-card based systems (MOTO, SSL, SET) electronic cash systems (DigiCash) micropayment schemes (PayWord, probabilistic schemes) Overview of basic concepts brief history of money traditional forms of payment – cash – payment through bank – payment cards electronic payment systems s – security requirements t p e – basic classification c n o c c i s a b f o w e i v r e v 2 O © Levente Buttyán 1 A brief history of money barter – most primitive form of payment – still used in primitive economies or under exceptional conditions – problem: “double coincidence of wants” • you want to change food for a bicycle • you need to find someone who is hungry AND has a spare bicycle commodity money – physical commodities which have recognized value e.g., salt, gold, corn, … s – desirable properties t p e • portability c n o • divisibility c c i s gold and silver coins became the most commonly used a b f o w e i v r e v 3 O © Levente Buttyán A brief history of money (cont’d) commodity standard – ~ 19th century – use of tokens (e.g., paper notes) which are backed by deposits of gold and silver held by the note issuer