I've copied this off of Ragingbull and it is the work of Sentinal. I want everyone to read this.
Niner...a repost of mine from another board... Ecommerce credit card encryption technology..DD There may be a highly
speculative play in the field of secure encryption technology. Read the following and let me know what you think. The
company's name is Playstar (PSCKF) and they have an offshore subsidiary called Cyberstation. (The following has been
pulled, edited, and spliced from many sources.) The dominant security protocol for credit card transactions is currently SSL
(single socket layer) developed by Netscape for encrypted transmissions over TCP/IP networks. This protocol is in the
process of being replaced by a protocol developed by Visa/Mastercard and IBM. It's called SET. SET as I understand it
places more emphasis on verifying both parties in a financial transaction (fraud is a two way street on the internet). The level
of encryption and the degree of compatibility however are not significantly better. This is where Cyberstation comes in. My
understanding of how their software works is as follows. Currently, the encryption that is used is embedded within the browser
and also resides on the server. By utilizing java applets, this new encryption can be used without waiting for Microsoft or
Netscape to develop and embed the technology within their browsers. When a customer uses the applet, the applet loads
onto the customer's computer just like any other java applet does, encrypts the credit card information, and then sends that
information to the credit card processing facility which in this case is Cyberstation. Cyberstation charges a certain and as yet
undisclosed fee to process the transaction, and then the funds are deposited with the merchant less the processing fee as is
typically done today around the world. While there are several competitors out there who do credit card transaction
processing, Cyberstation's software, NetEngine, offers the following IMMENSE advantages: 1. The level of encryption is 2048
bit encryption, MUCH higher than anyone else's in the world - Amazon.com uses 512 bit - and the bankers love it. 2. It is the
most user-friendly credit card software available. 3. It provides much better reporting capabilities and accounting capabilities
than any other such software. The programmers also solved a major problem, providing great database crunching off
unlimited merchant accounts without bogging down on a server. They have a program that is installed locally for merchants
that allows the merchant to establish an ultra-secure connection to the main server and pull their own logs. The merchant can
then do whatever they wish with the data, all within the same software. 4. NetEngine is Java-based and works on all platforms,
which their competitors' products do not. The decision to go with platform independent software is important because the
server world is much more diverse than the world of desktop PC's. In addition, SET/SSL technology must be embedded into
the navigation browser in order to function. This means that future changes to the security level of the SET protocol will also
have to wait for modifications to the Microsoft or Netscape browser (as well as modifications to US law). 5. They can have any
client up and running within 24 hours. No training is required 6. The software can be used for processing information, where a
VERY high-level of security is required, such as for on-line stock transactions and other e-commerce 7.Currently, US law
prohibits export of encryption technology greater than 56 bit (which has been cracked). Cyberstation's 2048 bit
PROPRIETARY technology was developed on St. Kitts (i.e., offshore) so they may distribute/license it freely to offshore
customers. 8. This software has been showcased at trade shows, and blows everybody away. At a recent trade show in
Vegas, they were lined up 4 deep at the booth, and the company walked away with more than 100 leads. If
Playstar/Cyberstation is successful in nailing down key banking arrangements, becoming the de-facto standard software for
credit card processing, the revenue stream will be enormous, and could well outstrip anything that any on-line casino company
can do, even one of Starnet's magnitude with hundreds of licensees. Just as in on-line gaming, there is no inventory, no
receivables, no shipping, and even better no labor costs. Whoever uses their cc software will have to pay a transaction fee (or
part of a transaction fee). The only sticking point is nailing down sufficient banking partners, both off-shore and on-shore to
make it a worldwide standard. They are supposedly well on their way in terms of making presentations to the banking
community. They already have the capability to work with any bank in Canada and also at least one major in the U.S. They are
going after on-line casino business as one of their first targets, and this is where the off-shore business comes in and where
off-shore banking arrangements are so crucial. Playstar until recently had minimal presence on the Internet, in the form of one
casino, which was poorly marketed, and not even ranked among the best in a technical sense. The announcement some
months ago of the Quick-Connect program gave investors cause for excitement, because it meant that many partners to their
casino could be quickly and easily created, making for a much larger presence out there. However Quick Connect has been
plagued with technical problems, never got off the ground as intended. A couple of key managers have left the company (let's
just say for personal reasons), and a new management team has very recently taken over (around Easter of this year). Also a
press release went out in January, announcing a merger with Cyberstation of St. Kitts, the owner of the proprietary software
for credit card transaction processing. The new CEO is currently re-writing Playstar's business plan to exploit both the
ecommerce solution, and the igaming revenue streams to a greater extent. Of the two, the credit card technology is far more
lucrative and is not surrounded by controversy as is igaming. They are devoting much effort into becoming the dominant
encryption solution, but they are also putting equal emphasis to getting their casino business back on track, and in fact should
have about 10 casinos up and running by summertime. The Quick-Connect program should also have all the bugs worked out
by then. Quick Connect is the name of Playstar's igaming marketing strategy. Essentially it allows any webmaster to have his
own casino website for free, and to be set up very quickly. The webmaster need only create the "splash page" or front door,
then put Playstar's Java Applet casino games and pCash Applet onto his site. Playstar takes care of everything else. You
don't need a merchant account, a gaming license, or anything at all. A little HTML, and poof!, you own a casino site! The
webmaster would obviously be responsible for marketing, and depending on the "handle", would get up to 40% of the profits.
Playstar gets the rest. The games fit with webmaster's sites seamlessly. The QC partners are not full licensees like with the
others (SNMM). The games and financials will all be handled by Playstar. This means all payouts will come directly from
Playstar, not the webmasters. There is no worry of missed payouts; no chance of any bad apples spoiling it for others. Another
QC advantage: Gamblers like progressive jackpots. Playstar will be able to pool the handle from these thousands of QC sites
for massive progressive jackpot amounts. The other igaming companies will not be able to compete will multi-million dollar
progressive jackpots that the QC sites will be able to offer! Playstar's previous management were not the most diligent when it
comes to SEC reporting, and because certain forms were not filed, the SEC appended an "E" to the end of the Playstar
symbol, and it traded under PSCKE for a few weeks. Playstar had 30 days grace period within which to file the correct
financials, or they would have been de-listed from the OTCBB. The new CEO, Stuart Brazier, stepped in and gave personal
assurances to shareholders that the missing reports would be the highest priority, and on 4/22/99, Playstar received its former
symbol back and began trading once more under PSCKF. Volume and price have been rising for the last week as this stock
has been under heavy accumulation by major shareholders who believe in the potential of the NetEngine technology. Visit
FreeEdgar for filings to the SEC as of Monday 4/19/99. Miscellaneous: Float: 5 million shares As of 8-98 there was approx.
30,500,000 shares outstanding. 3,923,000 options at average @ .14 exercisible between 12-04-2003 and 4-09-2003. /
4,835,000 warrant @ .80 exp. May 2000 / 1,000,000 warrants @ 1.25 exp. May 2000 / 100,000 warrants @ 1.00 exp. May
2000 / 100,000 warrants @ .50 exp. May 2000 Good DD link :
ragingbull.com Personal view of the new CEO:
ragingbull.com Encryption research links: For those who want to
know the terms, etc. isacany.org Verisign uses only 128 bit SSL and trades over $100
verisign.com A research paper that shows that 2048 bit will be standard in the future.
vt.edu:10021/Z/zhzhang2/paper.htm THIS IS A HIGHLY SPECULATIVE TURNAROUND SITUATION. The
company has shown very positive initiative recently, and management seems results-oriented. I myself have sent the CEO
several emails, all of which have been answered personally and within a day or so. These messages, and his replies, are
posted on the RB message board for PSCKF. Management is also instituting a shareholder newsletter to keep us informed.
Still, it is a very small company and can be said to be quite risky. It trades on the OTCBB, though its annual report is audited
and it is fully reporting. It is a "penny stock" right now, so do not invest money you cannot afford to lose! PLEASE do your own
DD if you decide to pursue this further! I am not a broker, and will not post any more on this topic unless asked to do so.
Todd/Sentinel
What does everyone think???
Thanks Sentinal for your work.
Hylas |
