Digital certificates provide the basis for secure electronic transactions as they enable all participants in a transaction to quickly and easily verify the identity of the other participants. Integrity ensure that the messages have not been tampered with by a third party during transmission. Integrity is ensured through encryption. If information is received that will not decrypt properly then the recipient knows that the information has been tampered with during transmission. Non-repudiation prevents customers or merchants denying they ever received or sent a particular message.
Privacy prevents third parties from reading intercepted messages.
Privacy is also guaranteed through encryption. Although information can still be intercepted by a third party they will be unable to read them as they have no access to the encryption key. Apart from the technological solutions, policies have to be formulated and the legal aspect worked out in order to ensure smooth functioning of the digital economy. Policies regarding Telecommunication and market access have to be worked out within individual economies and harmonised to a certain level across the globe. Legislature is required in order to regulate the electronic environment.