E-commerce
Learning Unit 1
Outcomes
• explain what the Internet is, and how it operates.
• explain what a network is; and distinguish it from the Internet.
• identify and distinguish between the different role players involved on the Internet.
• explain the various contractual relationships that may be created between service
providers, access providers, content providers and customers.
• describe the various services offered on the Internet; and
• explain what e-commerce is and the challenges it poses on already existing
concepts
1 Explain what the Internet is, and how it operates.
1.1 What the Internet is
The internet is a collection of computer networks that are connected to each other by
a set of software protocols called TCP/IP protocols (Transmission Control Protocol/
Internet Protocol). It is these protocols that allow networks and the computers
connected to them to communicate and share information.
1.2 Operation
The core of the internet is referred to as the internet backbone, and it is a set of high-
capacity backbone networks which carry the bulk of internet traffic.
1.2.1 TCP creates packet-switched networks which are a type of network that is
meant to reduce the chances of any data being lost when sent via a network.
1.2.2 TCP breaks down every piece of data into small chunks called packets. Each
packet is wrapped in an electronic envelope with both the sender and receivers web
address.
1.2.3 The IP protocol then figures how the packets are meant to go from the sender
to the receiver by passing through a series of routers.
1.2.3 Each router examines the destination address of the packet it receives and
then passes it along to another router towards its destination.
1.2.4 Upon arrival of the different packets (which may have all taken different
directions to get to the destination) TCP takes over once more and identifies each
packet and checks to see if it is intact and once the check is done it reassembles
them into the original data.
1.2.5 The internet grants users’ access to the WWW which can be accessed using a
browser.
2 Explain what a network is; and distinguish it from the Internet
2.1 Network explanation
A network is a system of interconnected devices/computers that communicate with
each other within this system in which one device acts as an administrator and
through these devices/computers communicating it allows for an exchange of
information/data.
2.2 Difference between network and internet
Network Internet
Has a device that acts as an administrator The internet does not have a
singular device acting as an
administrator
Can be local, regional, global The internet is a global network
Can be privately owned The internet is not privately owned,
decentralised.
Connects via Local Area Network, Wide Area Connects via World Wide Web,
Network, Campus Area Network, and Home chatrooms, videoconferencing, etc.
Area Network, etc
3 Identify and distinguish between the different role players involved on the
Internet
3.1 Identify role players involved on the Internet
1. Access providers
2. Internet service providers
3. Hosts
4. Content providers
5. Navigation providers
6. Search engines
7. Website designer
8. Webmaster
9. Portal
3.2 Distinguish between role players involved on the internet