International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Volume 8 Issue 4
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Securing Digital Markets: The Economic Role of RSA Encryption and the Consequences of Security Failure

Author(s) Vasishth Rungta
Country India
Abstract The rapid expansion of digital markets has made secure communication an essential prerequisite for economic activity. Among the technologies that support this environment, the RSA encryption algorithm has become one of the most widely used public-key cryptographic systems, enabling secure online transactions, authentication, and digital communication. This paper examines the extent to which RSA encryption enables digital trust in online markets and analyses the economic consequences when digital security fails. It first outlines the mathematical foundations of RSA before exploring its role in reducing information asymmetry, lowering transaction costs, and supporting network effects that encourage consumer participation in digital commerce. The paper then evaluates the economic implications of implementation failures through prominent cybersecurity incidents, demonstrating how weaknesses in surrounding security infrastructure can lead to financial losses, reputational damage, and reduced consumer confidence. It argues that while RSA provides the cryptographic foundation necessary for secure digital markets, its effectiveness depends upon robust implementation, complementary security protocols, and institutional governance. Ultimately, RSA should be understood not only as a technical security mechanism but as a critical component of the economic infrastructure that enables trust, participation and efficiency within modern digital markets.
Keywords RSA Encryption, Digital Trust, Digital Markets, Information Asymmetry, Cybersecurity Economics
Field Computer > Network / Security
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-08-08
DOI https://doi.org/10.36948/ijfmr.2026.v08i04.85077
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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