E-Commerce Lecture 17

With EDS' help, 7-Eleven this week will be taking a big gulp of state-of-the-art online payment and wireless Web technologies. 7-Eleven is piloting with EDS a smart-card payment system as well as real-time wireless Web access in a "store of the future" project that is going live this weekend, said EDS officials. Click here to read the rest of this news story.

The learning objectives of lesson 7 include:

Why use a smart card?
Smart cards are quickly becoming the preferred platform for conducting transactions and verifying identities around the world. These small devices look like a credit card but are capable of acting like a computer, thus the term “smart card”. The portable convenience and security of the smart card has lead to increasing demand. It can be used to verify a user's identity to log on to a computer network; allow a physician to scan a patient's medical records and history; and it will soon be the modern replacement of the many forms ID, travel, credit and access cards.

The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. If the host computer read and wrote the smart card's random access memory (RAM), it would be no different than a diskette.

Smarts cards may have up to 1 kilobyte of RAM, 24 kilobytes of ROM, 16 kilobytes of programmable ROM, and an 8-bit microprocessor running at 5 MHz. The smart card uses a serial interface and receives its power from external sources like a card reader. The processor uses a limited instruction set for applications such as cryptography.

The most common smart card applications are:

Smart cards have their roots in security functions, so several smart-card applications are related to security issues. Other applications include:

Memory smart cards use a unique serial number to identify a user, and can be contact cards or contactless cards. They provide some security, but can be used by anyone in possession of the card. More complex identification schemes require the use of a microprocessor smart card, which can require the user to enter a Personal Identification Number (PIN) or other information to prove identity.

Using a smart card to log on to a network is similar to the identification application. This can be a simple operation using the card serial number, or a complex operation requiring PINs and a network password. Microsoft Windows 2000 provides native support for this feature.

Network Security

Passing information over the Internet is a security risk because an unanticipated party can intercept the information. This can be critical if the information is confidential, such as a credit-card number or a financial report.

Microprocessor smart cards and PKI can be used to provide secured information transmissions. The cards store the algorithms, keys, and certificates required to encrypt the information. The information is extremely difficult to decode without the keys, and they never leave the card, which prevents them from being intercepted by a third party.

Electronic Purses

Electronic purses are memory or microprocessor smart cards used to perform monetary transactions. Memory smart cards are used to provide services, such as purchasing copies on a copy machine. When the counter is depleted, the card is thrown away. Electronic purses are also used for gaming endeavors where a user buys a card with gaming credits that can be used in a gaming machine. Credits are added or subtracted from the card according to the rules of the game. Electronic purses could also be used as cash so a user could move cash from one smart card to another for a transaction, or convert some or all of the card credit back to cash.

Special Applications

JavaCard and Personal Computer/Smart Card (PC/SC) allow programmers to write code for smart cards, much the same as the code written for PCs. The only limit for the code is the size of the EEPROM used in the smart card. Special applications that could be developed include:

Launching a web page on insertion of the card
Launching a support web page configured to the user's needs
Storing personal information

Smart-Card Readers

Card readers provide the physical link between the smart card and the host. Figure 4 shows a combination keyboard/card reader. The host can be a PC or a stand-alone device. The reader delivers power, initializes the card, and acts as the mediator between the smart card and the host. Power is delivered to the smart card through a contact on the micromodule of contact smart cards or by inducing current through the antenna of contactless designs. Initialization is a specified protocol that all cards must perform. All smart-card readers support the initialization of any smart card, but they may not support the card after it switches to its specific application.

Smart Card Video Links

Click the link above then click the GO button at the top right hand corner of your screen. It will look like this:

Then follow the links to the following videos:

U.S. to use national ID cards?
March 29, 2002

Smart cards getting smarter
October 29, 2001

Compaq embraces smart cards
June 16, 2001

Will smart cards entice consumers?
February 20, 2001

The options for smart-card applications are virtually unlimited depending on the creativity of the developer.

This where I want you to give it a try. What types of applications would smart card technology hold for you as a student at ASU? Want to not take a quiz? Write a one page brief on how ASU could use Smart Card Technology. What are the applications? What would be the technology that would be needed? How would it benefit both the student and the University.