E-COMMERCE AND FAIR EXCHANGE
The Problem of Item Validation
Fabio Piva and Ricardo Dahab
Institute of Computing, University of Campinas (UNICAMP), Campinas, Brazil
Keywords:
e-Commerce, Fair exchange, Item validation, Indescribability, e-Goods.
Abstract:
Fair exchange protocols have been widely studied since their proposal, but are still not implemented on most e-
commerce transactions available. For several types of digital items (e-goods), the current e-commerce business
models fail to provide fairness to customers. The item validation problem is a critical step in fair exchange,
and is yet to receive the proper attention from researchers. We believe these issues should be addressed in
a comprehensive and integrated fashion before fair exchange protocols can be effectively deployed in the
marketplace. This is the aim of our research, and drawing attention to these problems and possible solutions
is the goal of this paper.
1 INTRODUCTION
Fair exchange protocols were proposed (Asokan,
1998) as a solution to the problem of two mutu-
ally distrusting parties interested in exchanging dig-
ital items atomically. Many variations of Asokan’s
original protocols have since been studied, but most
of them were too cumbersome or required too many
resources to be seriously considered for real applica-
tions. Probabilistic fair exchange (Markowitch and
Roggeman, 1999), for instance, required a great num-
ber of messages to be transmitted, in order to achieve
only a probabilistic, more relaxed form of fairness.
Arguably, the most successful instances of fair ex-
change in the real world are the optimistic fair ex-
change protocols two-party protocols that rely on
a mutually trusted third party (TTP) to handle excep-
tions that may arise during the exchange. Those pro-
tocols quickly became the focus of fair exchange re-
search, and were used as the core of several pioneer-
ing e-commerce projects (Nenadic et al., 2004; La-
coste et al., 2000).
Much work has been dedicated to the formaliza-
tion of fair exchange protocols. Grtner et. al. (Gart-
ner et al., 1999) give the first steps towards a formal
definition of fairness; other authors follow similar ap-
proaches to different fair exchange properties, such
as non-repudiation (Kremer et al., 2002) and time-
liness (Piva et al., 2009). As for verification meth-
ods, very few of them seem able to handle optimistic
fair exchange protocols appropriately, mostly due to
their multi-protocol nature. Some recent works ac-
complished interesting results (Piva et al., 2006; Piva
et al., 2007; Piva, 2009) with the adaptation of the
Strand Spaces method (Thayer et al., 1999) for sup-
porting optimistic protocols.
However, most current e-commerce stores do not
implement fair exchange in their business models;
a simple web search reveals several Apple’s iTunes
Store user complaints about mistaken music files be-
ing purchased due to inaccurate description of the
products; also, the Digital Downloads section on
Amazon.com contains several customer comments on
the same subject. To worsen the problem, most com-
panies openly adopt a no-refund policy when it comes
to selling digital products – even in the case of a mis-
taken purchase.
Such problems relate to an essential, but not suf-
ficiently explored, aspect of fair exchange protocols:
the item validation step. The original definition of
fairness states that an exchange is fair if at the end
of the exchange, either each player receives the item
it expects or neither player receives any additional
information about the other’s item (Asokan, 1998).
For that end, aside from ensuring the atomicity of the
exchange, the protocol must specify when and how
a party can check whether the item she just received
(or is about to receive) is the one she desires. This
is, however, a delicate process that may be influenced
by the characteristics of the items being exchanged,
by the available resources and by the structure of the
protocol itself.
317
Piva F. and Dahab R..
E-COMMERCE AND FAIR EXCHANGE - The Problem of Item Validation.
DOI: 10.5220/0003523303170324
In Proceedings of the International Conference on Security and Cryptography (SECRYPT-2011), pages 317-324
ISBN: 978-989-8425-71-3
Copyright
c
2011 SCITEPRESS (Science and Technology Publications, Lda.)
As such, we consider the item validation prob-
lem of e-goods a very interesting and relevant topic of
research, and that e-commerce would greatly benefit
from a better understanding of its subtleties. We also
believe that the lack of attention on this subject is the
very reason why fair exchange protocols are not yet
widely implemented in the current e-commerce busi-
ness models.
1.1 Document Organization
The remainder of this document is organized as fol-
lows: Section 2 describes our main motivation
namely the unsuitability of the current e-commerce
model to today’s consumer’s and seller’s needs to
consider item validation as an important topic of re-
search. Section 3 presents our concept of reversible
degradation, an elegant abstraction of how to solve
the problem of fairly exchanging, validating and sell-
ing multimedia content over the Internet. In Section 4
we show a few alternative models for selling digital
items, and discuss why they do not address the issues
raised here. We conclude in Section 5 with some fi-
nal remarks on the item validation problem and what
future research on this topic should focus on.
2 MOTIVATION: E-COMMERCE
IN REAL-WORLD
In this section we present our view on the current e-
commerce model for digital items, and discuss why
selling/purchasing digital items through the internet
is a much more delicate process than it is for physi-
cal items specially when multimedia (indescribable)
files are the focus of the transaction.
2.1 Current Model Description
During the past ten years, selling digital content has
become an attractive business, mainly due to the fast
increase of consumers of that kind of media. The
latest technological trends such as cheaper and
faster broadband internet connections, greater storage
space, and gadgets that provided users with easier ac-
cess to their data on-the-go contributed to the devel-
opment of a solid market for these so-called e-goods.
And although several virtual retailers have emerged in
order to supply this demand for digital content, most
of them chose to adopt a real-world based business
model that, however successful for selling physical
products, is unsuitable for trading digital products; it
is our belief that physical and digital items are intrin-
sically different to be negotiated in the same way
mainly because it is too easy to create an identical
copy of a digital item, thus voiding any possibility of
a returning policy in the case of an unsatisfying pur-
chase.
The currently adopted model for electronic com-
merce of digital content is the following: First, the
buyer registers with the seller, thus obtaining an ac-
count through which the transaction will be carried
out. Then, while logged in the store’s system (which
might be a website or client software, for instance),
the buyer chooses the product he desires to purchase;
he must check carefully whatever descriptions – such
as feature lists, pictures, or samples are available for
that product. Figure 1 illustrates a hypothetical digital
item for sale and its possible description.
Item Summary: Portrait
of model Lena Sderberg
Keywords: hat, bust,
plumes, portrait
File Specs: PNG image
(bitmap), RGB, 256x256
resolution
(a) Item i (b) Description desc(i) of i
Figure 1: Desired item i and it’s description as a list of spec-
ifications.
In this model, the item is not publicly available for
the interested customer (otherwise he would be able to
aquire it without paying for it). Instead, only the de-
scription, which in this example is the list of features
ilustrated in Figure 1b, is available before payment.
Once satisfied by this description, the buyer places
an order for that particular product he now has a
mental image of what he expects to receive. He must
then pay for it; this may happen either by revealing
his credit card number to the store, or by depositing
money to an external account and then informing the
seller, for instance. Either way, upon receiving the
payment, the seller finally releases the product to the
buyer maybe by sending him a temporary link for
downloading it or as an attachment in an email mes-
sage.
If the buyer pays but never receives the product,
dispute might be started. Most buyers would first try
to contact the store, which will generally try to solve
the problem to avoid bad reputation. Mostly, in the
case of a digital file’s purchase, the store would sim-
ply resend the item to the buyer, without losing any
money. This is only the case because of the idem-
potency (Asokan, 1998) property of e-goods: If a bit
stream was to be received by a user, it wouldn’t make
a difference if that same bit stream was received mul-
tiple times, since this would mean that several exact
SECRYPT 2011 - International Conference on Security and Cryptography
318
copies of the same e-good was being received. For
physical goods, this would not be the case: If the store
was required to re-send a physical item, this would
represent loss of money to the seller, and a malicious
buyer would be able to retain two or more identical –
but several, neverthless – instances of a product.
However, a completely different situation occurs
if the buyer receives the product, but is not satisfied
with it – which might happen if the description about
a certain aspect of the product had been left vague
or ambiguous by the store. In such cases, the buyer
might find himself in an unfair situation having
paid for a product that does not meet his expectations.
Figures 2a and 2b show two candidates for delivery
that match the description shown in Figure 1b. One
could point that the problem could be easily solved by
adding the word “color to the description, but then
Figure 2(c) would still be a candidate for delivery.
(a) (b) (c)
Figure 2: Three different files that show pictures of the
model Lena Sderberg. Figures (a) and (b) equally satisfy
any description that does not mention color properties, and
Figures (a) and (c) could be mistaken even if color is men-
tioned – which could lead to the wrong file being delivered.
In cases of mistaken delivery, both the store and
any external judge might refuse to intervene in favor
of the buyer, for it is his responsability to carefully
check the product description before paying for it.
The fact that the buyer is not able to return the wrong
item without possibly keeping a copy for himself –
in exchange of the right one, makes the store unable
to distinguish a genuine mistake from a pay-for-one-
and-take-two con. We refer to this issue as the unre-
turnability property of digital items, and believe that
it is one of the reasons why e-goods must be traded
differently than physical products.
Unfortunately, if the digital product in question
is also an indescribable item (Bottoni et al., 2007),
there can be absolutely no guarantee to a buyer about
the outcome of the purchase, in this model. Even if
a sample of the file is used as description – a reduced
thumbnail of an image file, or a lower bitrate frac-
tion of a song file might be available for download
beforehand, for instance – the above mentioned prob-
lem might still occur, as we shall see in Section 2.2. In
fact, most of the times, the buyer has no guarantee that
the item corresponding to the sample is in fact the one
to be delivered; as shown in Figure 3a, he might very
well download a thumbnail sample of image file i, en-
gage in a transaction for aquiring the larger version of
it, and end up with a copy of image file i
illustrated in
Figure 3b – possibly due to some internal error in the
store system, or even human error when advertising
the item.
Seller Buyer
//
Validates
payment
oo
//
Unexpected
(a) Buyer desires i (b) Item i
6= i which
from Figure 1a also satisfies desc(i)
Figure 3: The current model allows a buyer to pay for a file
and receive a different one.
Dispute process for this kind of situation would
be rather difficult, since the buyer would not be able
to return file i
in exchange of desired file i; the store
might rightfully allege that the buyer would be able to
retain a copy of file i
for himself, which would leave
it in an unfair situation. One should notice that even
if the description from Figure 1b was used instead of
the thumbnail to validate the transaction, the wrong
item i
would still be a candidate for delivery.
Situations like this happen more often then one
might imagine. In the next section we present a
few examples of unsatisfied customers, gathered from
communities of users of one of the most proeminent
e-stores available – namely Amazon.com.
2.2 Real Examples of Unfairness in
e-Commerce
In this section we present a few examples of unsat-
isfied consumers of digital music. The fact that dig-
ital music files are examples of indescribable items
(as we shall better define in Section 2.4) makes them
very difficult to exchange fairly. Without a good de-
scription, item validation becomes difficult and error
prone because the buyer is not able to accurately de-
E-COMMERCE AND FAIR EXCHANGE - The Problem of Item Validation
319
cide wether the item he is about to pay for is the one
he desires, or not.
Currently, one of the most popular services for
buying songs remains Amazon MP3 Downloads,
which follows the business model described in Sec-
tion 2.1. However, in order to strengthen item vali-
dation, the store also provides buyers with a limited
preview of thirty seconds of each song.
(a)
(b)
Figure 4: Amazon MP3 Downloads description of an item.
Figure (a) shows a list of details about the file, while Figure
(b) shows a limited preview button.
One might think that, with the addition of a pre-
view of the song to the description, the chances of
someone buying the wrong file would be negligible.
However, as Figure 5 shows, this may not always be
true.
As we previousy stated, the current business
model for multimedia, as well as several other special
items, is anything but fair. In the following sections
we intend to relate this issue to the problem of item
validation, as well as to suggest a few possible, fair
alternatives to the current e-commerce paradigm for
digital items.
2.3 The Item Validation Problem
Optimistic fair exchange protocols (Asokan, 1998)
usually follow a common sequence of events: Let us
suppose that two parties P and Q are willing to ex-
change two generic items i
P
and i
Q
. A common re-
quirement is that P and Q know beforehand the de-
scriptions desc(i
Q
) and desc(i
P
), respectively, of their
expected items; there must also be a publicly avail-
able function validate(i, d) which takes an item i and
a description d and returns TRUE, if d accurately de-
scribes i, or FALSE otherwise.
The parties then engage in the exchange, initially
gathering sufficient information to prove the validity
of the transaction; this step is crucial to allow for in-
ternal or external dispute resolution, in case of ex-
(a)
(b)
(c)
(d)
Figure 5: Four examples of unfair situations occured due
to inaccurate validation of the purchased song (even when
limited preview is available).
ceptions. After that, they proceed to the exchange
of items. When a party receives an item, it executes
validate() using the received item and the known de-
scription as parameters, and checks the result to de-
SECRYPT 2011 - International Conference on Security and Cryptography
320
cide whether the item is the expected one. If the func-
tion returns FALSE, then the protocol must be robust
enough to either allow the cheated party to recoverthe
correct item, usually by providing information about
the unfair transaction to the TTP, or to stop her coun-
terpart from getting the other item, if it has already
been revealed.
One should notice that the availability of both the
function validate() and accurate descriptions of the
items are then essential to ensure fairness in this type
of protocol. However, for some particular items, pro-
viding an accurate description can be a hard task (Bot-
toni et al., 2007). We shall return to the issue of item
(in)describability in Section 2.4.
Even for describable items, validation may not be
trivial. The protocol designer must carefully ponder
when in the protocol run the parties will be required
to perform validation, and whether the item will be
encrypted or unencrypted. Also, should the valida-
tion be performed by parties themselves, or should a
TTP be assigned for this task? And if we transfer this
responsability to a TTP, how can we describe the val-
idate() function so that we can ensure that parties will
agree with its evaluation? All those questions must
be taken into account when designing a fair exchange
protocol, and are usually not so.
2.4 Special Properties of Items (and
How they Affect Validation)
The first proposals for fair exchange proto-
cols (Asokan, 1998) regarded items as generic,
forwardable digital goods, but soon researchers
took interest in particular instances of the problem.
Some special types of items, such as digital cash,
multimedia files etc., may present special properties
that should be considered during protocol design. A
strongly revocable item (Vogt, 2003), for instance,
can be invalidated by its issuer, if some conditions are
met. If the items being exchanged are both strongly
revocable, fair exchange could become rather trivial,
since unreturnability would no longer be an issue.
Not all special properties, however, assist the de-
signer in the task of guaranteeing fairness. As we
discussed in Section 2.3, protocol designers usually
assume that a good description of each item will be
available to parties before the exchange is initiated.
Although little discussion can be found on what a
good description would be, the fact is that descrip-
tions may depend greatly on the nature of the item,
and some items are particularly hard to describe. In-
describable items (Bottoni et al., 2007) present a real
challenge to the fair exchange problem, simply be-
cause they are hard to validate. In fact, we believe that
no currently known optimistic fair exchange protocol
can be used to guarantee fairness to a party interested
in an indescribable item. The discussion an example
provided in Section 2.1 strengthens this claim.
3 REVERSIBLE DEGRADATION
In order to address this issue, we propose the concept
of reversible degradation an idea that might be the
first solution for the fair exchange and validation of
indescribable items. By transforming (degrading) the
item in such a way that it becomes clearly deterio-
rated, but can still be distinguished by the receiving
party, the owner could release it for validation without
the risk of being cheated. If this degradation process
could be made reversible, the buyer would be able to
receive the degraded copy, validate it and then negoti-
ate a key for recovering the original, full-quality item,
as illustrated in Figure 6.
One interesting advantage of reversible degra-
dation over other approachesis that it allows the buyer
S(Seller)
= , K
(a) Degradation
S B
//
payment
oo
K
//
(b) Fair exchange
B(Buyer)
, K =
(c) Extraction
Figure 6: Reversible degradation concept description.
E-COMMERCE AND FAIR EXCHANGE - The Problem of Item Validation
321
to obtain the item before paying for it even if it is
somehow degraded. Validation would then be per-
formed by the user’s own senses, since human per-
ception is capable of ignoring degradation for the pur-
pose of deciding whether that is, in fact, the desired
item. Also, as we shall discuss in Section 4, re-
versible degradation does not require any significant
additional bandwidth cost as other methods do – or
hardware changes on both ends of the transaction.
Another important property of the reversible
degradation concept is that, after the degradation is
reversed, the item is fully restored to its original form
no trace of the degrading information, perceivable
or not, is left behind. This differs in essence from
DRM methods and some removable watermarking
techniques (Loytynoja et al., 2007) that still leave in-
formation embedded into the item and require the key
on every subsequent access to its content. Such tech-
niques require the user to use special software or hard-
ware to consume the purchased product, which is in
general a problem if the user prefers a specific soft-
ware player or intends to use a particular audio file on
his portable digital music player.
There are several paradigms that might be good
starting points for reversible degradation, such as er-
ror correcting codes (Minder, 2007), removable wa-
termarking (Loytynoja et al., 2007; Kwong, 2006)
and perceptual cryptography (Lian, 2009). The par-
ticular characteristics of these methods, as well as
how they interact with fair exchange protocols, are
yet to be studied and remain the focus of our current
research. In this paper, we limit ourselves to present
the concept abstraction, compare it with other alter-
native models and discuss its main impacts on item
validation and e-commerce of digital items.
4 ALTERNATIVES TO
REVERSIBLE DEGRADATION
In this section we present a few alternative models for
the purchase/sale of multimedia items. We also point
the main problems with each of them, and compare
them to our reversible degradation model.
4.1 Full Preview with Embedded Player
This is similar to the the limited preview model used
by the major digital music stores available, specifi-
cally iTunes Store and Amazon. The limited preview
model is presented in Section 2.2.
By allowing buyers to fully preview the song they
are about to buy, the store reduces the problems that
might arise if a bad section is chosen as a preview in
the limited preview model. By listening to the whole
song or watching the whole movie before buying, cus-
tomers can better decide if that item is really what
they are looking for. However, this would allow any
malicious user to easily capture the video or audio
stream and record it without any quality loss, thus ob-
taining the item without having paid for it. This is
unfair by definition, and would represent a great loss
for media sellers.
4.2 Random Preview with Embedded
Player
If instead of providing a limited, fixed preview of the
item, sellers provided a randomly-chosen portion of
the file to be previewed, the bad portion problem of
limited preview would also be solved. But since the
full portion is not provided to the user, recording the
stream to a new file would be harder.
Harder, but not impossible. Even if only a limited,
randomly chosen portion of the item was made avail-
able each time the customer clicked on the presented
preview button, a full copy of the file would be not
that hard to obtain. By clicking the preview button
several times, and by recording each part of the song,
it wouldn’t take long to the malicious user to obtain
the whole song separated in several recordings. Re-
construction of the whole item would then be easily
accomplished with a simple software editor.
We should notice that even if this system were
smart enough to never select a particular portion of
the item to be previewed – thus avoiding full item re-
construction by this method – there could be cases in
which the hidden portion was exactly what the user
wanted to preview to decide if the item is the one he
desires. Some songs, for instance, have too many ver-
sions that can be very similar to each other, differing
only by a few seconds from one another. The same
might happen with a director’s cut release of a movie,
that may come with a few additional frames than the
theatrical version. In such cases, hidin a particular
portion of the item might present the buyer with an
undecidable situation.
4.3 Lower Bitrate Samples
Instead of providing a preview of any kind, stores
could provide the buyers with a full, downloadable,
lesser quality version of the item. This is very simi-
lar to reversible degradation, with the only difference
that the degradation is not reversible and is fixed as a
deliberately low bitrate. In image files, the equivalent
would be a low resolution version of the item.
SECRYPT 2011 - International Conference on Security and Cryptography
322
There are at least two problems with this model:
First, by fixing the degradation method to lowering
the bit rate/resolution of the item, the buyer would
not be capable of deciding if the quality of the final
item would be satisfactory. This violates the fairness
property of the transaction the customer could find
himself unsatisfied with the outcome of the purchase,
finding the acquired item poorer than he initially ex-
pected.
Second, this would almost double the required
bandwidth in every successful purchase. The buyer
would have to download each item twice first, the
low bitrate version; and finally, the full quality one
instead of just one item download, as it is possible
with reversible degradation. Specifically in the case
of digital movie content purchase, this is significantly
worse, since the items can be considerably large.
If reversible degradation was used, instead, only
one large download would be required. The second
download would be replaced by a small key file, that
would allow full quality reconstruction of the item.
Also, other forms of degradation could be used in-
stead of lowering the bitrate – thus leaving this prop-
erty untouched.
4.4 DRM-based Expiration Date
Instead of degrading the file whatsoever, the store
could provide the user with a full quallity download
before the payment was made. The provided item
would be rigged with some form of expiration date
mechanism that would be triggered after some time,
unless otherwise disabled by the user (possibly with
some key provided after payment).
The problem here would be similar to the one
discussed in Section 4.1. By playing the rigged
item before the expiration date, the malicious buyer
could simply record the output to another file with-
out any perceivable quality loss. Besides that, DRM
acceptance is still debatable among digital media
consumers, mostly because of interoperability is-
sues (Valimaki and Oksanen, 2006) so we believe
that DRM-based models are deemed to soon disap-
pear in this context.
4.5 Multimedia Encryption, Perceptual
Cryptography and Partial
Encryption
Multimedia encryption (Lian, 2009) is a special
field of research that concerns encryption/decryption
schemes specifically designed for audio, video and
image content. These schemes usually rely on some
known cipher as the central component for a larger al-
gorithm, taking into account the perceptual funcional-
ity of multimedia. Another term commonly associ-
ated to multimedia encryption is perceptual cryptog-
raphy.
The main idea behind perceptual cryptography is
that multimedia content does not have to be fully en-
crypted to be protected. Its functionality depends ex-
clusively on human perception, which is highly sus-
ceptible to small changes on the object. Such schemes
are capable of making multimedia content completely
unrecognizable to the human observer, by only en-
crypting a small fraction of data - a procedure ref-
ered to as partial encryption (Cheng and Li, 2000;
Servetti et al., 2003); this is particularly interesting
for applications where efficiency is critical, such as
video-on-demand, since the burden of real-time en-
cryption/decryption can be highly reduced.
Partial encryption techniques seem to be very
promising in conjunction with fair exchange proto-
cols. We have no knowledge of any study on the ef-
fects of perceptual cryptography on fair exchange of
multimedia content, and we believe that much can be
gained in the context of item validation.
5 CONCLUSIONS
The study of the item validation problem will cer-
tainly improve the chances of deployment of fair ex-
change protocols by making it adequate to todays e-
commerce needs. Neither currently published fair ex-
change protocols, nor the currently implemented e-
commerce business models, are able to provide fair-
ness to both customers and sellers simultaneously,
given the characteristics of current digital products
and payment schemes. Specifically in the context of
digital music and video selling, which is increasingly
becoming the mainstream form of media consump-
tion among the general public, new solutions should
be proposed to reduce customer losses and increase
reliance on e-commerce transactions.
We stress that, to the extent of our knowledge,
the problem of item validation of fair exchange pro-
tocols has not been studied at all. The available tech-
niques are barely described on protocol specifications,
if so. By treating validation techniques as nothing but
a byproduct of protocol design, researchers have ne-
glected to approach a hard problem in protocol design
one that might lead to fruitful discussions and fur-
ther enhancements on the state of art of diplomatic
protocol design.
The fair exchange of indescribable items, for
instance, has only been approached recently (Bot-
E-COMMERCE AND FAIR EXCHANGE - The Problem of Item Validation
323
toni et al., 2007), and techniques for the optimistic
fair exchange of those items are yet to be seen.
Our reversible degradation model, presented in Sec-
tion 3, shall produce the first solutions to address
the exchange of indescribable items optimistically.
Other alternative models for multimedia purchase,
presented in Section 4, do not seem to address our
concerns as well as our reversible degradation model
in conjunction to fair exchange protocols.
The focus of our current work remains on evaluat-
ing several promising techniques, as well as propos-
ing new ones, for reversible degradation of multime-
dia items. Concurrently, we are also giving the first
steps towards the formalization of the item validation
problem of fair exchange protocols, which remains an
important open problem of cryptographic protocols
design. We believe that, unless some attention is ded-
icated to the item validation problem and to how to
accurately describe digital items, fairness will remain
left aside from e-commerce and, as a consequence,
reliance on e-commerce will never be as high as it
should be in today’s market needs.
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