MANDATE II
Document Exchange Transactions Supported by the ETS
The contact point for the project is:
Mr Peter Landrock CRYPTOMATHIC
Aarhus Science Park
Gustav Wieds Vej 10
8000 Arhus C
Denmark Tel no: + 45-86 139020
Fax no: + 45-86 20 29 75
E-Mail: landrock@cryptomathic.dkObjectives and Scope: There is an enormous benefit both to Banks and their customers if the traditional paper cheque and other negotiable instruments can be replaced by an electronic equivalent with the same functionality as its predecessor, while significantly more secure and at the same time more easily transferred and settled. In addition the burgeoning commmercial use of the Internet is creating a significant demand for secure electronic payment methods, operable within the framework of Internet use.Funded under the EC DGXIII ETS (Electronic Trusted Services) programme, MANDATE uses a functionally Trusted Third Party to provide the confidence needed for a new electronic financial negotiable instrument. Designed as a generic solution to electronic negotiability, MANDATE will ultimately be built on tamper-resistant hardware, known as a DOC-carrier, and using public-key cryptography to provide the security required. The purpose of the hardware is to prohibit what is known as "double-spending", i.e. that the same electronic negotiable document is sold twice. Approach MANDATE will also cover the legal implications by providing a contractual framework within which the solution can work. The commercial/legal structure of the MANDATE electronic negotiable instrument will be a contractual framework which will reproduce the functionality of the paper based negotiable instrument. In addition there will be agreement between participating banks to operate the system honouring validly drawn electronic instruments and agreement between those banks to impose identical conditions of use on their customers. Whilst an ordinary paper document is merely a carrier of information and can readily be transformed into an electronic format, the negotiable document embodies a value of some kind which is transferable. This document must therefore remain unique. Translating such a document into an electronic format presents issues which need to be overcome before an electronic equivalent can be presented as a fully commercially acceptable solution. It is believed that the MANDATE project can provide such a solution.
MANDATE provides methods and devices for the issue and negotiation of electronic negotiable instruments, and is particularly relevant to systems designed to be secure in open environments. Central to the technical solution is a 'DOC-carrier', which is tamper-resistant and implemented in some special hardware such as an advanced smart card.
The negotiable instrument to be handled by the DOC-carrier system is created as an electronic message containing all the relevant data. This is digitally signed by the issuer and transferred in a secure manner onto the issuer's DOC-carrier. The transfer of an electronic instrument can only be carried out between authorised DOC-carriers.
Inherent in the solution is a Trusted Third Party which has enabled the DOC-carrier, but otherwise only plays a role in case of malfunction or disputes, in which case loss may be recovered correctly, thus providing the trust.
Expected Results
One of the most important tasks in MANDATE is the involvement of a group of actual pilot users to assist in developments from the start of the project. A small number of pilot banks will be selected at an early stage in the project to help define a set of functional requirements for MANDATE, with specific focus on their business needs. These banks will then go on to pilot the solution once it has been built and tested.
It is thus expected that MANDATE will be providing the first electronic cheque solution, which can be imbedded in the SEMPER solutions for Electronic Commerce. SEMPER is the largest current EU-project (under the ACTS programme) on electronic commerce, with IBM France as main contractor. The aim is to set the standards for open electronic commerce based on a modular approach which allows for a number of individual solutions. SEMPER is being tested as it develops through a number of advanced pilot projects in several countries. One of the first pilots involves the largest mail order company in the world, Otto Versand in Germany. For more on SEMPER, see http://www.semper.org
The Consortium
Made up of organisations with experience of designing and implementing innovative projects in the area of secure electronic commerce the MANDATE Consortium comprises:
Cryptomathic: A security systems developer based in Denmark, Cryptomathic has a vast experience of digital signatures, key management and international standards in cryptography. Involvement in other projects includes FAST, BOLERO and SEMPER. Cryptomathic is the main technical partner in MANDATE and will help define the software, carry out the development work and act as main technical support during pilot operation.
Marinade: Based in the UK, Marinade is an independent consultancy specialising in legal, commercial, security and technical issues related to electronic commerce, particularly in the trade services sectors. Marinade was one of the major partners in the BOLERO consortium and has been involved in developing the concept further into a full commercial service. Marinade will provide overall project management together with liaison with other groups, such as the ICC E100. Marinade will concentrate on the business aspects of the project and will take a lead in the definition of the business and functional requirements.
Needham & Grant: Commercial solicitors based in London specialising in intellectual property law, computer law, information technology law and the law relating to electronic commerce. Experience in major projects for the Commission includes Solon, Portia and an earlier Mandate project. Needham & Grant is therefore well placed to cover the legal aspects in MANDATE.
Synergetics: A Belgian-based consultancy specialising in electronic communications will be responsible for project evaluation and quality control.
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