SET stands for Secure Electronic Transaction, which is a protocol for ensuring secure transactions over the internet. SET was developed by a consortium of leading financial institutions and technology companies, including MasterCard and Visa, to provide a secure and reliable way for consumers to make purchases over the internet.

SET provides a secure way for consumers to make purchases online by encrypting sensitive information such as credit card numbers, names, and addresses. This helps prevent unauthorized access to this information and protects against fraud.

SET works by encrypting sensitive information, such as credit card numbers, and transmitting it over a secure connection between the consumer's computer, the merchant's server, and the payment gateway. The payment gateway, such as a bank, then verifies the authenticity of the transaction and processes the payment.

SET also provides a secure way for merchants to verify the identity of their customers and to ensure that they have the necessary funds to complete a transaction. This helps to reduce the risk of fraud and chargebacks, making it a safer and more secure way to conduct transactions over the internet.

In summary, SET is a secure protocol that provides a way for consumers to make purchases over the internet with confidence. It protects sensitive information, verifies the identity of the consumer, and ensures that transactions are processed securely and reliably.

History of SET in Computer

The Secure Electronic Transaction (SET) protocol was developed in the mid-1990s as a response to growing concerns about security and privacy in online transactions. At the time, the internet was rapidly growing, and many consumers and businesses were hesitant to make purchases or conduct transactions online due to security and privacy concerns.

The SET protocol was created by a consortium of leading financial institutions and technology companies, including MasterCard and Visa, with the goal of providing a secure and reliable way for consumers to make purchases over the internet. The SET specification was released in 1997, and the first SET-enabled transactions were processed in early 1998.

The SET protocol quickly gained widespread acceptance and was widely adopted by merchants, payment gateways, and financial institutions. SET provided a secure and reliable way for consumers to make purchases online and helped increase consumer confidence in online transactions.

However, despite its initial success, SET faced several challenges and limitations, including complexity and implementation issues, and was eventually replaced by newer and more advanced security protocols, such as SSL/TLS and later HTTPS. 

Today, HTTPS is the most widely used protocol for secure online transactions and is used by millions of websites and online services to protect sensitive information and ensure the security of online transactions.

What is the Main Component of SET

The main components of the Secure Electronic Transaction (SET) protocol are:

Consumer: A consumer is the individual making a purchase over the internet using SET. The consumer's computer must have SET software installed to participate in SET transactions.

Merchant: A merchant is the entity that sells goods or services over the internet. The merchant's server must have SET software installed to participate in SET transactions.

Payment gateway: A payment gateway is the financial institution that processes SET transactions. The payment gateway verifies the authenticity of the transaction and ensures that the necessary funds are available.

Digital certificates: Digital certificates are used to verify the identity of the consumer, merchant, and payment gateway. SET uses digital certificates issued by a trusted third-party certificate authority to authenticate the identities of all parties involved in the transaction.

Encryption: SET uses encryption to protect sensitive information, such as credit card numbers, names, and addresses. SET uses public key cryptography to encrypt and decrypt the sensitive information and to ensure the privacy of the transaction.

Message digest: A message digest is a unique digital signature used to verify the integrity of the transaction. SET uses message digests to ensure that the transaction has not been altered or tampered with in any way.

These are the main components of the SET protocol and are essential for ensuring the security and reliability of SET transactions.

How Secure Electronic Transaction works

The Secure Electronic Transaction (SET) protocol works as follows:

Consumer requests a purchase: The consumer requests to make a purchase from a merchant's website.

Merchant sends an order request: The merchant sends an order request to the payment gateway, which includes the items being purchased, the total cost, and the consumer's shipping information.

Consumer authenticates: The payment gateway sends a request to the consumer to authenticate their identity. The consumer's SET software then encrypts the sensitive information, such as the credit card number, and sends it to the payment gateway.

Payment gateway verifies identity: The payment gateway verifies the identity of the consumer by checking their digital certificate. If the certificate is valid, the payment gateway uses the public key in the certificate to decrypt the sensitive information.

Payment gateway verifies funds: The payment gateway verifies that the consumer has sufficient funds to complete the transaction. If the funds are available, the payment gateway processes the transaction.

Merchant is notified: The payment gateway sends a notification to the merchant indicating that the transaction has been processed and that the funds have been transferred.

Confirmation sent to the consumer: The payment gateway sends a confirmation to the consumer, indicating that the transaction was successful.

Throughout the entire process, encryption and message digests are used to protect the sensitive information and ensure the integrity of the transaction. The SET protocol provides a secure and reliable way for consumers to make purchases over the internet and helps to protect against fraud and unauthorized access to sensitive information.

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