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Peppercoin Micropayments

  • Ronald L. Rivest
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3110)

Abstract

We present the ”Peppercoin” method for processing micropayments efficiently. With this method, a fraction of the micropayments received are determined, via a procedure known as ”cryptographic selection,” to qualify for upgrade to a macropayment. The merchant deposits the upgraded micropayments as macropayments, and merely logs locally the non-qualifying micropayments. In this manner, the merchant transforms a large collection of small micropayments into a smaller collection of macropayments, of the same total expected value. The merchant pays much less for processing the resulting macropayments, since there are fewer of them. Consumers are billed for exactly the amount they spend, based on auxiliary information recorded in each micropayment. The method is highly secure, and compatible with existing payment mechanisms such as credit cards.

Keywords

Blind Signature Metal Coin Small Payment Merkle Tree Music Download 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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    Merkle, R.C.: Secrecy, Authentication, and Public Key Systems. PhD thesis, Stanford University, Technical Report 1979-1; Information Systems Laboratory (June 1979) Google Scholar
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    Micali, S., Rivest, R.L.: Micropayments revisited. In: Preneel, B. (ed.) CT-RSA 2002. LNCS, vol. 2271, pp. 149–263. Springer, Heidelberg (2002)CrossRefGoogle Scholar
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    Peppercoin web site, http://www.peppercoin.com
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    Rivest, R.L., Shamir, A.: PayWord and MicroMint–two simple micropayment schemes. In: Lomas, M. (ed.) Security Protocols 1996. LNCS, vol. 1189, pp. 69–87. Springer, Heidelberg (1997); (Also available in Crypto- Bytes, RSA Laboratories, vol. 2(1), pp. 7–11 (Spring 1996), at http://theory.lcs.mit.edu/~rivest/RivestShamir-mpay.pdf Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Ronald L. Rivest
    • 1
  1. 1.Computer Science and Artificial Intelligence Laboratory Massachusetts Institute of TechnologyCambridgeUSA

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