E-Commerce Answer Set - I

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PART –A

1. Define Electronic commerce.


E-commerce -- electronic commerce or EC -- is the buying and selling of goods
and services, or the transmitting of funds or data, over an electronic network, primarily
the internet. These business transactions occur either as business-to-business, business-to-
consumer, consumer-to-consumer or consumer-to-business.
2. Define GIDN.
Two major technologies underpins the global information network distribution and they
are as follows;
Long Distance Networks – Fiber Optics
Long distance connectivity is available via cable (coax or fiber) owned by long
distance or inter- exchange carriers (IXCs). Experience suggests that fiber optics for
international transmission.
Satellite Networks
Satellite networks do have accessibility from any spot on the globe, can provide
digital broadband service including voice, data and video without the cost of acquiring
wire installation.

PART –B
3. a) Write the concept of internet terminology.

Internet is a network of interconnected networks and is designed to operate without a


central control. If a portion of the network fails, connection is made through alternative
paths available. The architecture of internet is hierarchical in nature. A brief description
of the architecture of internet is as follows:
 Client at home or in a LAN network is at the lowest level in hierarchy.
 Local Internet Service Provider (ISP) is at the next higher level.
 An ISP is an organization that has its own computers connected to the
internet and provides facility to individual users to connect to internet
through their computers.
 Local ISP is the local telephone company located in the telephone
switching office.
 The client calls local ISP using a modem.
 Regional ISP is next in the hierarchy. The local ISP is connected to
regional ISP.
 A router is a special hardware system consisting of a processor, memory and an
I/O interface used for the purpose of interconnecting networks.
 The regional ISP connects the local ISPs located in various cities
via routers.
 Backbone is at top of the hierarchy.
 Backbone operators are large corporation’s like AT &T which have their own
server farms connected to backbone.
 The backbone networks are connected to regional ISPs with a
 large number of routers through high-speed fiber optics.
 Network Access Points (NAP) connects different backbones.

3. b) Define digital switches, routers and Hubs

Routers-
It transfers or routes the data between networks. They are particularly used in
controlling traffic flow by making intelligent routing decisions. It is used in the network
layer of ISO model. It is used to connect networks that use different architectures and
protocols; they can transfer information packets across multiple networks. It is used by
the network as an intermediate destination. Routers Can:
 Direct signal traffic efficiently.
 Route messages between any two protocols.
 Route messages between linear bus, star and star-wired ring topologies.
 Route messages across fibre optic, coaxial, and twisted-pair cabling.
Switches-
It is a device that selects a circuit for sending data through a network. A
concentrator is a device that provides a central connection point for cables from
workstations, servers and peripherals. A switch tends to be simpler, faster and less
expensive than a router, lacks information about the network that a router may use in
determining the best circuit or path to use to move data from one part of a network to
another.
Hubs-
It is used in the network but these are such type of network devices that transmits
a data to all its connected devices. It does not control the traffic so they are less used in
comparison to switches.
PART – C
4. Explain in detail about NSFNET architecture and components

National Science Foundation (NFS) has created five super computer centers for
complex and wider range of scientific explorations in mid-1980s. Until then,
supercomputers were limited to military researchers and other who can afford to buy.

NSF wanted to make supercomputing resources widely available for academic


research. And the logic is that the sharing of knowledge, databases, software, and results
was required. So NSF initially tried to use the ARPANET, but this strategy failed because
of the military bureaucracy and other staffing problems. So, NSF decided to build its own
network, based on the ARPANET's IP technology.

The NFSNET backbone is initially connected to five supercomputing networks with


initial speed 56 kbps telephone leased lines. It was considered fast in 1985 but it is too
slow according to modern standards.

Since every university could not be connected directly to the center, need of
access structure was realized and accordingly each campus joined the regional network
that was connected to the closest center. With this architecture, any computer could
communicate with any other by routing the traffic through its regional networks, where
the process was reserved to reach the destination. This can be depicted in the three level
hierarchical models as shown in the figure:
Fig1: Figure1 shows the structure of the Internet hierarchy from national backbone
to campus network.
This abstraction is not completely accurate because it ignores commercial
network providers, international networks, and interconnections that bypass the strict
hierarchy.

Water distribution systems may be useful analogy in understanding the technology and
economics of the NSFNET program.

1. We can think of the data circuits as pipes that carry data rather than water.

2. The cost to an institution was generally a function of the size of the data pipe entering
the campus.

3. The campuses installed plumbing and appliances such as computers, workstations and
routers. And Service cost as an infrastructure cost such as classrooms, libraries and water
fountains.

But there is no extra charge for data use.

The mid-level networks acted like cooperatives that distributed data from the
national backbone to the campuses. They leased data pipes from the telephone
companies, and added services and management. So each member could access the pipe
and either consume or send data.
This model was a huge success but became a victim of its own success and was no
longer effective. One main reason for it was-the network's traffic increased until,
eventually, the computer controlling the network and the telephone lines connecting them
became saturated. The network was upgraded several times over the last decade to
accommodate the increasing demand.

The NSFNET Backbone

The NSFNET backbone service was the largest single government investment in
the NSF-funded program. This backbone is important because almost all network users
throughout the world pass information to or from member institutions interconnected to
the U.S. NSFNET.

The current NSFNET backbone service dated from 1986, when the network consisted
of a small number of 56-Kbps links connecting six nationally funded supercomputer
centers. In 1997, NSF issued a competitive solicitation for provision of a new, still faster
network service.

In 1988, the old network was replaced with faster telephone lines, called T-1 lines
that had a capacity of 1.544 Mbps compared to the earlier 56 Kbps, with faster computers
called routers to control the traffic.

By the end of 1991, all NSFNET backbone sites were connected to the new ANS-
provided T-3 backbone with 45 Mbps capacity. Initial 170 networks in July 1988 to over
38,000 and traffic of initial 195 million packets to over 15 terabytes. Discussions of
electronic commerce were due to the economic factor. The cost to the NSF for transport
of information across the network decreased.

It fell from approximately $10 per megabyte in 1987 to less than $1.0 in 1989. At
the end of 1993, the cost was 13 cents. These cost reduction occurred gradually over a
six-year period. Cost reductions were due to new faster and more efficient hardware and
software technologies.

Mid-Level Regional Networks


Mid level Regional Networks are often referred to as regional networks, are one
element of the three-tier NSFNET architecture.

They provide a bridge between local organizations, such as campuses and libraries,
and the federally funded NSFNET backbone service.

The service of Mid Level Regional Networks tends to vary from sub state,
statewide and multistate coverage.

State and Campus Networks

State and campus networks link into regional networks.

The mandate for state networks is to provide local connectivity and access to wider
area services for state governments, K-12 schools, higher education, and research
institutions.

Campus networks include university and college campuses, research laboratories,


private companies, and educational sites such as K-12 school districts.

These are the most important components of the network hierarchy, as the investment
in these infrastructures far exceeds that of the government's investments in the national
and regional networks.

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