Generally defined as a portable data storage device with intelligence (chip memory) and provisions for identity and security.
First and Current Implementations
Some History…
1970 - First implementation of microelectronic devices in plastic substrate (Kunitaka Arimura)
1974 - First patent “An independent electronic object with memory” (Roland Moreno).
1979 – First smart card by Honeywell Bull
1980’s First Trials in France
French Bank Card Association (Blue Card, Green Card, TA)
University Cards in France
Date Information took from The Changing Face of Money, Good Barbara
First and Current Implementations
Smart Card (Open System)
The scheme allows the value on the card to be used in the same manner as any other payments method or form currently in the specific place.
Promblems for wide development: Need for terminal to process transactions, clearing and settlement system.
First and Current Implementations
Unaccounted Electronic Money Model
Transactions closely proximate to cash ones
Aim to provide universal cash replacement
Without a full audit trail
Mondex Card
First and Current Implementations
Accounted Electronic Money Model
Provide a general audit trail
Archiving Functions
Does not permit the anonymity of incorporate it into the Web browsers
First and Current Implementations
Graph took from The Changing Face of Money, Good Barbara
First and Current Implementations
Smart Cards (Closed System)
A stored-value card that only can be used for one purpose or only in one determined environment.
First and Current Implementations
Octopus Card
Singapore
(Public Transportation payment)
Chipknip
Octopus Card
Rechargeable without contact stored value smart card (mass transit system in Hong Kong)
Nowadays convenience stores, supermarkets, parking meters, vending machines, etc.
Off-line Electronic Money
The merchant does not need to interact with the bank before accepting a user’s coin.
Merchant guaranteed that the user’s e-coin will be accepted by the bank (the bank is able to identify cheating user).
Off-line Electronic Money
Blind Signatures to achieve unlikability between withdrawal and spend transactions.
Using cryptography
Anonymous e-cash was
Introduced by David Chaum
Alternative Systems: Software Based Systems
Main Topic: Internet
Several Schemes devised to make purchases secure over the Internet
Security: Main concern for the method developers
Open Network
MasterCard and Visa agreement for SET (Secure Electronic Transactions) standard (1996)
Alternative Systems: Software Based Systems
Digital Gold Currency
Paypal
Liberty Reserve
Evolution, future approaches
Objectives
Turn it able to use it through wider range of hardware such as secured credit cards
Linked bank accounts for exchange with a secure micropayment system (Paypal)
In General…
Advantages:
Convenience
Privacy
Increased efficency of
transactions
Lower transaction fees
New business opportunities
In General…
Disadvantages
How to levy taxes
Possible facility of money
laundering
Exchange rate instabilities
Shortage of money supplies
Conclusion
At the end, it is necessary to search the more suitable cyberspace and microprocessor use regulations or laws that manage the transactions and watch for signs of trouble to help this new concept that seems to be the next step in business development, generally speaking.
