Thus, a magnetic strip card is unsuitable for storing sensitive data, further more, it requires an extensive online mainframe based computer networks for verification and processing. Such communications is not readily available in the European and Asia countries. A solution is to make the client piece more powerful, thus relieving some of the duties on the reader. By introducing the integrated circuit card (ICC) the solution was found.
In 1968, German inventors Jurgen Dethloff and Helmut Grotrupp patented the first ICC. In 1984 the French successfully carried out a field trial with telephone cards. By 1986 millions of French telephone smart cards were in circulation. Today it is widely used in Europe and Asia but has not yet made its distribution in US.
How it works?.
A smart card consists of three parts: a plastic card with or without a magnetic strip, an electronic module, and an electrical contacts and a silicon integrated circuit. In making of the smart card chip, a coat of silicon is completely covered and the chip substrate is made thinner. The silicon does not interfere with the function of the chip. It forms a homogenous layer that reacts to temperature and other factors in the same way as the chip itself, so theres no environmental stress. Before the cap is applied, tiny holds are made to allow access for the bond wires to be attached to the external contacts. Depending on the type of chip, smart cards can be use as either memory cards or processor card.
A memory card has an IC chip for memory storage. Memory card can hold information thousands times greater than a magnetic strip card. Its function is limited to basic applications such as phone card. On the other hand a processor card is attached with microprocessor, which works like a mini computer. .
Contact Smart Card.
Contact smart cards must be inserted into a smart card reader. The inside of a contact smart card is embedded with an 8-bit microprocessor.