Towards Decentralized and Secure Electronic Marketplace

1
Towards Decentralized and SecureElectronic
Marketplace

• Yingying Chen, Naftaly Minsky,
• Constantin Serban, and Wenxuan Zhang
• Dept of Computer Science
• Rutgers University
• May 6, 2005

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Outline

• On the nature of marketplaces, and their
  conventional electronic realization.
• Decentralized Electronic Marketplace (DEM), and
  its implementation via LGI.
• A marketplace for Airline Ticket An Example
• Related Work
• Conclusion

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Market Place Essentials

• A venue is required for buyers and sellers to
  find each other and conduct trading of
  merchandise.
• A degree of trust between buyers and sellers is
  required.

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Electronic vs. Traditional Marketplaces

• Traditional marketplace (e.g. Farmers Market,
  Shopping Mall)
• The venue of trading is physical and
  characterized by geographic proximity.
• The trust is generated by traditional societal
  meanssuch as familiarity, local laws, local
  customs, and local police.
• Electronic marketplace
• No geographic proximity, thus no human
  interaction, and no common customs and laws.
• The question is how to regain the necessary
  trust among the trading parties?

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Conventional Approach to E-Market

• Trust is established via a central mediator that
  enforces a set of rules and maintains reputation.
• Example ebay.com, pricingcentral.com/ford
• Limitations
• Very expensive to establish, if the marketplace
  is to be scalable and reliable.
• The rules of trading are usually implicit in the
  code of the mediator, and thus quite obscure.

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The Proposed Decentralized Electronic
Marketplace(DEM)

• Based on Law Governed Interaction (LGI)---a
  decentralized coordination access control
  mechanism.
• Interaction between buyers and sellers does not
  involve any central mediator.
• All participants in the marketplace operate via
  their private controllers, all carrying the same
  law of the market, L.
• The marketplace is defined by its law.

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Airline Ticket Marketplace (overview)
L
Controller
Agent
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Some Trust Requirements

• Airline tickets cannot be forged.
• Credit card submitted to a seller can be used
  only for the specified payment.
• Money back guarantee would be honored.
• One cannot lie about his/her own reputation.

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Implementation of DEM
t
controller
agent
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Implementation of DEM(Trading Law, Cont.)

• URL location of the law
• Java law
• www.cs.rutgers.edu/moses/examples/marketplace/
  trade.java1
• Prolog law
• www.cs.rutgers.edu/moses/examples/marketplace/
  trade.law

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Implementation of DEM(Performance Evaluation)

• Overhead added by a pair of controllers
• Depend on the complexity of the law 20 200 µs
• Negligible over WAN
• Acceptable over LAN

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Deployment(Using Distributed TCB)
Implemented by Moses Middleware
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Related Work

• European SEMPER project Wainder, M. et.al.
  1996-2000
• Proposed a secure electronic marketplace for
  Europe
• Basic trust assumption has been that each user
  trusts his or her own machine, but not the
  machine of the partner.
• Had no continuation after the project has been
  completed in 2000.
• Distributed Digital Commerce Schemees, M. 2003
• Discussed the benefits of decentralized market
  for digital goods.
• Studied the processes involved in digital trading
  and their implementation using P2P communication
• Proposed no mechanism for achieving the trust and
  security in the marketplace.

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Conclusion

• Proposed the concept of DEM (Decentralized
  Electronic Marketplace)
• Completely decentralized, fully scalable, and
  lightweight.
• Security and trust are provided by a single,
  unifying law that governs all the transactions
  made through the marketplace in some analogy to
  the laws that govern the traditional
  marketplaces.
• Proof of concept provided by an implementation of
  the airline tickets marketplace
• Implemented in both Java and Prolog trading law
• Demo will be available on the web site of LGI
  release
• Realization of DEM needs a widely deployed
  commercial controller service, to act as a
  distributed trusted computing base (DTCB).

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The End

• Thanks !
• Questions ?