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But this technology has a
potentially weak link: Breach the server, and the watchdog rolls over and plays
dead. An alternative to private-key cryptography is a public-key system that
directly connects consumers and merchants. Businesses need two keys in public-
key encryption: one to encrypt, the other to decrypt the message...
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Everyone who
expects to receive a message publishes a key. To send digital cash to someone,
you look up the public key and use the algorithm to encrypt the payment. The
recipient then uses the private half of the key pair for decryption. Although
encryption fortifies our electronic transaction against thieves, there is a
cost: The processing overhead of encryption/decryption makes high-volume, low-
volume payments prohibitively expensive...
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