How SSL works?

Internet merchants wanting to use the system get an SSL Certificate. The Certificate is data that has been digitally signed by a CA (Certification Authority, someone we are supposed to trust). Because it has been digitally signed by a trustworthy institution (CA) we are supposed to trust the data it contains. When you need to submit confidential information to the website (and you don’t intend anyone else to see it) you go to their secure web site. You can tell it’s secure because it has a slightly different start to the URL – "HTTPS" or "https". Notice the "s" at the end of http, signifying "secure". This indicates that you have established an SSL session through https secured URL.

Also notice that you now have a padlock showing on bottom right of your browser signifying an SSL connection. Many users are not familiar with this padlock yet. It has taken the industry about 5 years to ‘educate’ us to associate secure connection with this little padlock!

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