The World Wide Web (or the “Web”) is revolutionizing the concept of service -oriented computing. It permits the integration of the local area networks (LAN) and wide-area networks (WAN), thereby providing servers that are interconnected at a worldwide or an intergalactic level. Such an integration serves as a backbone for the Web-based business or e-business to access information, as well as perform e-business transactions across the globe with adequate security and reliability. In this article, we describe the issues involved in the design of an e-business transaction processing system and the solutions that have been proposed for these problems using the techniques of AI, conventional database transaction processing methodology and protocol engineering principles. These techniques will be useful for improved transaction throughput and scalability in e-commerce (Brancheau & Shi, 2001; Menasce & Almeida, 2000; Murthy, 2002).