Transactor System Overview

Version 1.0
Oct-98
Copyright © 1998 Transactor Networks, Inc.,
2650 18th Street, San Francisco, CA, 94110
All rights reserved.
Printed in the U.S.A.
Transactor™ Server System, Release 1.0
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 Table of Contents
Preface............................................................................................................................................1
Audience..............................................................................................................................1
How to Use This Book .........................................................................................................1
Terminology.........................................................................................................................1
Related Documentation ........................................................................................................1
Introduction ...................................................................................................................................2
System Components.......................................................................................................................2
Transactor Server .................................................................................................................2
Responsibilities............................................................................................................................2
Relationships ...............................................................................................................................3
Biz Framework ....................................................................................................................3
Responsibilities............................................................................................................................3
Relationships ...............................................................................................................................4
Transactor Client..................................................................................................................4
Responsibilities............................................................................................................................4
Relationships ...............................................................................................................................5
Preface
This is an introduction to the Transactor system and its three primary components.

Audience
This document is for general audiences seeking an introduction to the Transactor system.
The descriptions assume only a basic understanding of client-server systems.

How to Use This Book

Consult this document for introductory information on the Transactor system
components, their roles, responsibilities and relationships.

Terminology
This document uses the following terminology and conventions:
• The term Transactor server refers to the components of the Transactor system that
provide encryption, validation, and ownership verification services. The Transactor
server consists of two portions, the Transactor engine written in the JAVAª
programming language, and the Transactor database that resides in an Oracleª
database.
• T-server is a shortened form of the term Transactor server. These two terms are used
interchangeably throughout this document.
• The term Application server refers to the server-resident portion of a third party
client-server application.
• The term Biz Framework refers to a framework of software components which a
developer can use to create an Application server program.
• The term Application client refers to the client-resident portion of a third party client-
server application.
• The term Transactor client refers to the components of the Transactor system which
interface with application clients and provide a communication channel with a Biz
Framework.

Related Documentation
Transactor Biz-Framework Developer Guide, Describes the Biz Framework model,
components and use
Transactor TxOwner Developer Guide, Describes the client-side model, components and
use

Transactor System Overview 1 10/16/98

Introduction
The Transactor system allows you to create, sell and resell safely and securely a new type
of digital property called “limited edition digital object” (LEDO™) products.
Representing software components, digital receipts, or valuable services, LEDO objects
embody a new value model for online commerce.
The Transactor system employs a combination of cryptographic algorithms within a
secure three-tiered architecture to protect the rights and privileges of ownership in the
digital realm. By authenticating users, securing communication channels, validating
ownership of objects before transactions take place, the protecting purchase-related data
from tampering, the Transactor system provides its users, customers and merchants alike,
with a degree of confidence otherwise unavailable online.
Built as an enabling framework, the Transactor system is designed for integration into
new and existing network-aware applications. Simplified API's at the client and server
allow developers to access features without requiring low-level tinkering.
The Transactor system is written almost entirely in the JAVA language with only a small
portion of the cryptography written in native C.

System Components
The Transactor system is best described by dividing it along its hierarchical tiers. Each
tier has its own role, responsibilities, and relevance to application developers.

Transactor Server
The Transactor server is the transactional authority within the system. Its role may be
seen as that of a records-keeper and manufacturer. Interfacing with the Transactor
database, it is responsible for:
• keeping records of all users, products and units throughout the system
• altering these records when appropriate
• responding to queries regarding these records

Responsibilities
With its authority and control of the records, the Transactor server performs a host of
critical operations including:
• creating new user accounts - both end users and merchants
• creating new products or product groups (called universes)
• creating LEDO units (actual product instances produced at time of purchase)
• validating ownership of units (preventing misrepresentation of ownership)
• listing new products and used units for sale

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 • transferring ownership of products or units
• Implementing Payment Schemes (interfacing with payment processors)

Relationships
The Transactor server communicates with, or responds to messages from, three entities:
• a Biz Framework, via an authenticated, encrypted protocol called a T-Channel
• a payment processor, via a Payment Gateway
• the Admin Tool, the Transactor system administration tool
The only part of the Transactor server that application developers will ever have to be
concerned with is the T-Channel protocol. They will use this secure communication
channel to request the T-server to perform its operations.

Biz Framework
The Biz Framework is essentially the online business. It acts as a forum or medium
where commerce takes place. LEDO products representing goods or services, privileges
or rights can be exchanged using the Biz Framework's operations.
The Biz allows end users to enter its environment (store, website, game or other), it
authenticates the user's identity via a check with the Transactor server, and if all is well,
proceeds to conduct business.
The Biz Framework is the single most important level of the Transactor system to
application developers as it is the place where the business (application) is defined. The
Biz is a collection of behaviors and operations which can be customized to create the
developer's envisioned online business. The Biz is modified to manage everything from
end user perception of the space to the business rules and policies driving it.
Starting with the Biz Framework, application developers can commerce-enable almost
any type of online business including virtual shopping malls, networked entertainment
forums, digital service providers, online content sales and special events, customer
relationship services, and more.
A Biz is authorized to do business by a Transactor server. The certificate allows the Biz
to communicate with the T-server and make the queries essential to operate its business.
If the Biz is fraudulent, the T-server may revoke its certificate, essentially shutting it
down (or at least cutting off its Transactor functionality).

Responsibilities
In addition to requesting the Transactor server to perform the operations listed above, the
Biz Framework is responsible for:
• Authenticating and encrypting communication from Transactor clients
• Transferring Units into and out of Use within the Biz environment
• Placing Units for resale or removing them from resale

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 • Listing available Previews of Products for sale to end-users

Relationships
The Biz Framework mediates between the Transactor client and the Transactor server.
The Biz Framework will either respond directly to requests received from the Client or
ask the Transactor server to perform an operation, depending upon the client request
received.

Transactor Client
The client is the reciprocal of the Biz. It is the customer—or more precisely, the code on
the client machine that represents the end user in conversations with a Biz. Whereas the
Biz is deliberate flexible and open to modification by application developers, the client is
a fairly fixed collection of operations that application developers integrate without
changing. This is logical of course. While every store has the right to control customers
within their own store, they don’t have the right to control customers in other stores. The
Transactor client has a one-to-many relationship with Biz Frameworks. Each end user
need only have one client.
Application developers can however customize the appearance and context of the
Transactor Client and how it is accessed. The client can be built into a game, a web page
or any networked application. The underlying operations will be the same.
The Transactor client's primary functions are to manage a Transactor user's objects and
information at the end user machines, and to initiate communication with Biz
Frameworks. The client stores specific user data such as digital keys, certificates,
inventory, and login data, as well as information about the Transactor system as a whole,
such as Biz network addresses and product advertisements.
The Transactor system is driven by requests from the client. These requests are sent
whenever an end user attempts to connect to a Biz, buy a LEDO, see what products are
for sale, use a LEDO in an online space, and so forth. Every request is sent by the client
to a Biz which then either responds directly or sends a request of its own to a Transactor
server.

Responsibilities
The client provides a number of operations. Application developers can integrate these
operations into their own applications, but cannot alter their functionality. Client
operations include:
• Logging in or out of user account
• Listing Owned Units (view inventory)
• Showing Locally Held Advertisements (previews)
• Authenticating and encrypting communication with Biz Frameworks
• Sending requests to create new user accounts, see product lists, buy or use LEDO
units, post LEDO units for resale, and confirm ownership of LEDO units

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Relationships
The client resides on the end-user's machine and communicates with the Biz Framework
via a proprietary secure protocol. Transactor clients never communicate directly with a
Transactor server.