A system for warranting the identity of a party over an electronic network. The system comprises a root entity and a plurality of additional entities. Each additional entity is admitted to the system after agreeing to abide by a plurality of operating rules promulgated by the root entity. The additional entities may comprise level-one participants and level-two participants. Certificate authorities maintained by level-one participants issue digital certificates to their customers. The digital certificates bind the customers to their public keys. System customers are also provided with a warranty request formatter which is adapted to formulate a request for a warranty as to the veracity of information contained in a digital certificate. The warranty request formatter is also adapted to transmit the request for the warranty to the customer's level-one participant. The level-one participants maintain an intelligent messaging gateway which is adapted to receive messages from their customers and to transmit messages to appropriate system entities. Warranty offers are issued by the participant that issued the digital certificate identified in the warranty request. The participants are required to maintain collateral with a collateral custodian.