Patent ID: 7657745

Claim:
In an environment that includes a first, second, third and fourth computing entities, a method for the second computing entity to electronically transfer an electronically transferable item to the first computing entity with assistance from the third and fourth computing entities, wherein the first and third computing entities are in a first sphere of trust, the second and fourth computing entities are in a second sphere of trust, and the third and fourth computing entities are in a third sphere of trust, the method comprising the following: an act of the first computing entity authenticating the second computing entity, authentication including: an act of the first computing entity generating secret key data that is not known to the second, third, and fourth computing entities; an act of the first computing system providing the secret key data to the third computing entity; an act of the third computing entity encrypting received secret key data with secret data known to the third and fourth computing entities but not know to the first and second computing entities, the secret data for protecting a proper answer to a challenge based on the secret key data and for protecting approval data related to authorization for transferring electronically transferable items; an act of the first computing entity sending a challenge along with the encrypted secret key data to the second computing entity; an act of first computing entity receiving a purported answer to the challenge from the second computing entity, the purported answer to the challenge created at the fourth computing entity, the fourth computing entity using the secret data to decrypt the secret key data; an act of the first computing entity providing the purported answer to the challenge to the third computing entity; an of the third computing entity determining that the purported answer is an appropriate answer to the challenge based on a comparison of the purported answer to a proper answer for the challenge; subsequent authenticating the second computing entity, an act of the first computing entity providing an inquiry to the fourth computing entity as to whether or not the second computing entity has authorization to transfer the electronically transferable item; and an act of the fourth computing entity determining that the second computing entity has the authorization; and in response to the act of determining that the second computing entity has the authorization, performing the following: an act of crediting the electronically transferable item to the first computing entity or its user.