BEGIN:VCALENDAR VERSION:2.0 PRODID:-//Talks.cam//talks.cam.ac.uk// X-WR-CALNAME:Talks.cam BEGIN:VEVENT SUMMARY:Might Financial Cryptography Kill Financial Innovation? - The Curi ous Case of EMV - Omar Choudary ( Computer Laboratory) DTSTART:20110225T160000Z DTEND:20110225T162000Z UID:TALK30062@talks.cam.ac.uk CONTACT:Omar Choudary DESCRIPTION:I will present our paper for the Financial Crypto '11 conferen ce\, which will take place next week in St. Lucia. The abstract is below:\ n\nThe credit card system has been one of the world's great\nsuccesses bec ause of its adaptability. By the mid-1990s\, a credit card had become a me chanism for authenticating a transaction by presenting a username (the car d number) and a password (the expiry date\, plus often a CVV) that was alr eady used in mail order and could be adapted\nwith little fuss to the Inte rnet. Now banks in Europe\, and increasingly elsewhere\, have moved to the EMV \\Chip and PIN" system which uses not just smart cards but also \\tru sted" hardware. The cryptography supported by this equipment has made some kinds of fraud much rarer {\nalthough other kinds have increased\, and th e jury is still out on the net e ect. In the USA in particular\, some bank s and others oppose EMV on the grounds that it will damage innovation to m ove to a monolithic and\ninflexible system.\n\nWe discuss the eff ects tha t cryptographic lock-down might have on competition and innovation. We pre dict that EMV will be adapted to use cards as keys\; we have found\, for e xample\, that the DDA signature can be used by third parties and expect th is to be used when customers use a card to retrieve already-purchased good s such as air tickets. This will stop forged credit cards being used to bo ard airplanes.\n\nWe also investigate whether EMV can be adapted to move t owards a world in which people can use bank cards plus commodity consumer electronics to make and accept payments. Can the EMV payment ecology be ma de more open and competitive\, or will it have to be replaced?\nWe have al ready seen EMV adapted to the CAP system\; this was possible because only one bank\, the card issuer\, had to change its software. It seems the key to innovation is whether its benefi ts can be made sufficiently local and incremental. We therefore explore whether EMV can be\nadapted to peer-to- peer payments by making changes solely to the acquirer systems. Finally\, we discuss the broader issue of how cryptographic protocols can be made ex tensible. How can the protocol designer steer\nbetween the Scylla of the c ompetition authorities and the Charybdis of the chosen protocol attack? LOCATION:Computer Laboratory\, William Gates Building\, Room FW11 END:VEVENT END:VCALENDAR