B) Can you also give me some URL of a Web service provider that supports XML signature and/or encryption, so that I can test for my consumer?
B) The most common encryption mechanism for Web services is simply to use HTTPS rather than HTTP. A good article on the subject can be found at : http://www.fawcette.com/javapro/2003_08/online/webservices_jclune_08_25_03/.
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