The fluid, dispersed market of e -commerce makes it hard to judge the reliability of participants. While early Internet trust practices merge old practices—acknowledgments, customer surveys, audits—into Web technology, a need exists for better approaches to assurance. Ideally, these trust mechanisms should be inexpensive, scalable, and private. The proposed three-level hierarchy of ever more
... [Show full abstract] powerful assurance services, each interoperable with the other, is one means of addressing the varied assurance requirements of e -commerce participants. Particular emphasis is given to making assurance services inexpensive. INTRODUCTION This document reports on work in progress. As such, it has a dual focus. The first is an attempt to sketch a larger view of assurance—this yields the three-level hierarchy mentioned in the abstract. A second focus employs details and observations arising from a specific project, namely the FAST effort on economical Internet trust services. Salient points from the FAST work punctuate the text to give it a more concrete grounding. This approach may seem discursive, but it is more realistic than just discussing an abstract hierarchy. business practices and in fostering completely new forms of business transactions. The latter—the ability of the Internet to support novel business mechanisms—has been opened hitherto unrealizable avenues, such as customer-to-customer (C2C) auction markets. These auctions simply could not exist without Internet's powerful aggregating of parties across vast distances and populations. This aggregating is an extremely powerful business force. However, a widely dispersed market brings new challenges in whom to trust. Identity, trust and reputation are essential elements in any business deal. Since the Internet provides no physical presence, business participants must rely upon other means to establish identity and assess reputation. Initial successes in e -commerce have occurred among large organizations that have resources to build what are often complex and totally closed membership systems. Although this business-to-business (B2B) electronic commerce has had much emphasis, the market for open participation, business-to-customer (B2C) e -commerce is similarly important. Several observations reinforce this view. (1) The larger firms, having greater resources, can initiate projects on far broader scopes than can small firms, so early development might be expected in B2B. (2) The size of B2B is exaggerated. Gross figures, rather than value-added, are commonly tallied for each stage in the B2B distribution chain. (3) Over half of US employment is with establishments classified as small. (4) Smaller businesses have characteristics similar to retail customers, e.g., they are sensitive to cash flow and are unknown to the public. In comparison to regular B2B, the supplies and services that smaller businesses purchase are small—they are close to retail sales in magnitude.