Chapter 3

Є-commerce
 Learning Objectives:
▪ Discuss the origins of the Internet
▪ Identify the key technology concepts behind the Internet
▪ Explain the current structure of the Internet
▪ E-commerce and business strategies

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 The Internet: Technology Background
▪ Internet: An interconnected network of thousands of networks and millions of
computers, linking businesses, educational institutions, government agencies and
individuals.
▪ World Wide Web (Web): One of the Internet’s most popular services, providing access
to over 6 billion Web pages.
The Evolution of the Internet 1961-2010
▪ Innovation Phase: fundamental building blocks conceptualized and realized.
▪ Institutional Phase: providing funding and legitimization for Internet.
▪ Commercialization Phase: private corporations take over and expand Internet
backbone and services.

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 Key E-commerce Technology Concepts Behind
The Internet
Federal Networking Council definition of Internet
highlights three important concepts that are basis for
understanding the Internet:

▪ Packet switching
▪ TCP/IP communications protocol
▪ Client/server computing

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 Cont…
▪ Packet Switching
• A method of slicing digital messages into packets, sending the packets along different
communication paths as they become available, and then reassembling the packets once they
arrive at their destination
• It uses routers: special purpose computers that interconnect the computer networks that
make up the Internet and route packets to their ultimate destination. The path taken by a
datagram to reach the destination is called Route.
• Routers use computer programs called routing algorithms to ensure packets take the best
available path toward their destination .

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Figure 3.2 - Packet Switching
 Cont…
▪ TCP/IP (Transmission Control Protocol/Internet Protocol)
TCP/IP reference model is responsible for transferring data between the source and destination
computers.
• Protocol: a set of rules for formatting, ordering, compressing and error-checking messages
• TCP: Establishes the connections among sending and receiving Web computers, handles the
assembly of packets at the point of transmission, and then reassembly at the receiving end.
• IP: Provides the Internet’s addressing scheme.
TCP/IP is divided into 4 separate layers:
• Application Layer
• Transport Layer
• Internet Layer
• Network Interface Layer

Figure 3.3 - The TCP/IP Architecture and

Protocol Suite

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 Cont…
▪ IP Addresses
• Internet address (also called IP address): a 32-bit number expressed as a series of four
separate numbers marked off by periods, such as 201.61.186.227
• IPv4 the current version of IP. Can handle up to 4 billion addresses
• IPv6 (next generation of IP) will use 128-bit addresses and be able to handle up 1 quadrillion
addresses .

Figure 3.4 - Routing Internet Messages: TCP/IP and Packet Switching

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 Cont.
▪ Domain Names and URLs
• Domain name: IP address expressed in natural language
• Domain name system (DNS): allows numeric IP addresses to be
expressed in natural language
Example: cnet.com = 216.200.247.134
• Uniform resource locator (URL): addresses used by Web browsers to
identify location of content on the Web
Example: http://www.azimuth-interactive.com/flash_test

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 Client/Server Computing
Model of computing in which very powerful personal computers
(clients) are connected in a network with one or more server
computers that perform common functions for the clients, such as
storing files, software applications, etc.

Figure 3.5 - The Client/Server Computing Model

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 Other Internet Protocols and Utility Programs
 HTTP : Protocol used to transfer Web pages .
 SMTP, POP and IMAP : Protocols used to send and receive e-mail.
 FTP : Protocol that permits users to transfer files from server to client and vice versa.
 SSL : Protocol that provides secure communications between client and server.
 Telnet : Program that enables a client to emulate a mainframe computer terminal.
 Finger : Utility program that lets you check who is logged on, for how long and user
name.
 Ping : Utility program that allows you to check connection between client and server.
 Tracert : Utility program that allows you to follow pat of a message sent from a client
to a remote computer.

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 Current Structure Of The Internet
▪ Client/server computing model, coupled with hourglass, has allowed Internet to
handle explosive growth without disruption. When the data transmission via the
four layers is visualized, it takes the shape of an hourglass and the model is called the
IP hourglass model.
▪ IP hourglass depicts that whatever the path taken by data, it has to pass through IP.
▪ Hourglass/layered architecture has 4 layers
▪ Network Technology Substrate
▪ Transport Services and
Representation Standards
▪ Middleware Services
▪ Application

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Internet Network Architecture
(submarinecablemap.com)

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 The Internet Backbone
▪ The internet Backbone defined by the principal data routes between large, strategically
interconnected computer network and core routers of the internet.
▪ These data routes are hosted by commercial, government, academic and other high
capacity network centers, as well as Internet Exchange Point and Network Access Point,
that exchange internet traffic between the countries, continents and across the oceans.
▪ Consists of high-bandwidth fiber-optic cable owned by a variety of Network Service
Providers (NSPs)
▪ Term bandwidth refers to how much data can be transferred over the communications
media within a fixed period of time
▪ May be expressed bits per second (bps), kilobits per second (Kbps), megabits per
second (Mbps) or gigabits per second (Gbps)
▪ NAPs, MAEs and CANs
• Hubs where backbones intersect with regional and local networks, and where
backbone owners connect with one another called Network Access Points
(NAPs) or Metropolitan Access Exchanges (MAEs).
• Campus area network (CAN): Local area network operating within a single
organization that leases Internet access directly from regional or national carrier
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 Cont …
▪ Internet Service Providers (ISPs)
• Leases Internet access to home owners, small businesses and some large institutions
• Retail providers that deal with “last mile of service”
• Major international ISPs include AOL, MSN, and AT&T Worldwide.
• Offer both narrowband (traditional telephone modem connection at 56.6 Kbps) and
broadband (service based on DSL, cable modem, T1 or T3 telephone lines, and
satellite)
▪ Broadband Service Choices
 Digital Subscriber Line (DSL): Telephone technology delivers high-speed access through
ordinary telephone lines; speeds from about 385 Kbps to 1.5 Mbps.
 Cable modem : Cable television technology piggybacks digital access to Internet on top of
analog video cable line; speeds from about 500 Kbps to 2 Mbps.
 Satellite : High-speed downloads (256 Kbps to 1 Mbps), but no upload available.
 T1 and T3 : International telephone standards for digital communication that offer guaranteed
delivery rates
 T1: 1.54 Mbps
 T3: 43 Mbps
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 Cont …
▪ Intranets and Extranets
• Intranet : TCP/IP network located within a single organization for purposes of
communication and information processing
• Extranet : Formed when firms permit outsiders to access their internal TCP/IP
networks

❑ Who Governs the Internet ?

▪ A number of different organizations that influence Internet and monitor its
operations including:
• Internet Architecture Board (IAB)
• Internet Corporation for Assigned Names and Numbers (ICANN)
• Internet Engineering Steering Group (IESG)
• Internet Engineering Task Force (IETF)
• Internet Society (ISOC)
• World Wide Web Consortium (W3C)
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