E-Commerce Questions with Answers
1. Explain the term encryption and decryption and their role in the conduct of E-commerce using
example.
Encryption is the process of converting plain text into a coded format (cipher text) to prevent
unauthorized access. Decryption is the reverse process, converting cipher text back to plain text. In
e-commerce, encryption ensures secure transmission of sensitive data like credit card details. For
example, when a customer enters payment info on an online store, SSL (Secure Socket Layer)
encrypts this data to protect it from hackers.
2. Difference between public and private key.
Public key is used to encrypt the data and is shared openly, while the private key is kept secret and
used to decrypt the data. In e-commerce, public key infrastructure (PKI) ensures secure
communication by using both keys. For instance, when making an online purchase, the public key
encrypts the user's payment information which can only be decrypted by the merchant's private key.
3. Discuss the ethical issues related to E-commerce.
Ethical issues in e-commerce include privacy concerns, intellectual property rights, online fraud,
transparency in transactions, and data protection. Companies must ensure that customer data is not
misused, adhere to fair trade practices, and avoid deceptive marketing.
4. Explain cryptography and digital signature.
Cryptography is the science of securing information by transforming it into an unreadable format. It
ensures data confidentiality, integrity, and authentication. A digital signature is a cryptographic
technique that verifies the authenticity and integrity of digital messages or documents. In
e-commerce, it ensures that the transaction is initiated by a verified party and has not been
tampered with.
5. Short note on Mobile Commerce.
Mobile commerce (m-commerce) refers to buying and selling goods or services through wireless
handheld devices like smartphones and tablets. It includes mobile banking, mobile shopping apps,
and digital wallets like Paytm or Google Pay. M-commerce enables convenient and quick
transactions from anywhere.
6. What are the security threats in E-commerce environment?
Security threats in e-commerce include phishing attacks, malware, hacking, identity theft,
denial-of-service attacks, and payment fraud. These threats can compromise customer data and
disrupt business operations, necessitating strong cybersecurity measures.
7. What are the emerging trends in E-commerce?
Emerging trends in e-commerce include AI-powered recommendations, voice commerce,
augmented reality shopping, drone deliveries, blockchain for secure transactions, omnichannel
experiences, and the use of chatbots for customer service.