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Money Pad- The Future Wallet 2011-12
1.Introduction
The 21st century will not be "cashless", as many now predict. However, it does
seem clear that the currency of the 21st century will be "paperless". Paper currency and
checks are gradually being supplanted by smartcards, digital cash and instant transfers of
funds. The large paper bureaucracy of banks is quickly becoming redundant, burdensome,
even antiquated. The evolution in digital money is happening so fast that banks cannot
adopt quickly enough and will eventually collapse like top-heavy giants, blown over by the
winds of financial change. Maybe, or may not be, but one trend is already clear. The wallet
of the future mil holds less paper cash, coins and magnetic stripe cards. It mil hold instead
Money Pad containing digital cash and other financial information, updated — perhaps
automatically — by a PDA.with a satellite communication link.
As the new technologies develop into new ways of making payment, one concern
naturally arises. Will this technology protect each individual's right to privacy
whileproviding the sound money needed for the economic health of communities? The
answer is simple — it depends on how the new technology is used. There is nothing
inherent in the technology that makes it less protective of privacy and individual rights.
Advancement's like Biometrics Technology has made individual privacy even more
secure.
As developments in electronic money gather pace, protection of individual rights
must be kept in focus. Because the record of most governments so far in these early stages
of electronic commerce has been seen by many to be confrontational and not protective of
individual rights, it is likely that the preservation of these rights is one reason that private
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Money Pad- The Future Wallet 2011-12
currencies are likely to emerge on the Internet and to eventually play an important role in
global commerce.
In order to protect the rights and properties of each individual we thought of
providing a security system, which every human being can understand and feel free to use.
Human beings feel secure when they have their own security arrangements to protect their
rights and as well as wealth. Keeping this point of view in mind the Biometrics Technology
is used to develop an e-cash handling system, which is similar to well-known credit cards and
smart cards. The e-cash handling system is a device that facilitates secure currency
transactions. We call it as Money Pad which recognizes Finger Prints of the user and
decides weather the user is an authorized person or not. Every time the user wants to access
the Money Pad he has to make an impression of his finger, which will be sensed and
matched with the one in the hard disk. If the finger print matches with the user's he will be
allowed to access and use the Pad otherwise the Money Pad is not accessible.
Department of ISE 2 SCT Institute of Technology
Money Pad- The Future Wallet 2011-12
2. What is Biometrics
Biometric technologies are defined as automated methods of identifying or authenticating
the identity of a living person based on unique physiological or behavioral characteristics.
Biometrics can provide very secure and convenient authentication for an individual since
they cannot be stolen or forgotten and are very difficult to forge.
A physiological characteristic is a relatively stable physical characteristic, such as an
individual’s fingerprint, hand geometry, iris pattern, or blood vessel pattern on the back of
the eye. This type of biometric measurement is usually unchanging and unalterable without
significant duress to the individual.
A behavioral characteristic is more a reflection of an individual’s psychological makeup.
A signature is the most common behavioral biometric used for identification. Because most
behavioral characteristics vary over time, an identification system using these must allow
updates to enrolled biometric reference.
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Money Pad- The Future Wallet 2011-12
3. Technical Details of the Paper
3.1 Basic of the Present System
Presently due to the usage of computers in almost all the fields the demand for the
utilization of Electronic Money has been increased. Payments made today in nearly all of the
deposit currencies in the world's banking systems are handled electronically through a series
of interbank computer networks. Credit cards and smartcards are widely used to enter into
these interbank computer networks in order to perform transactions. These are the popular
medium widely existing as a recent medium of currency in the e-cash scenario. The mode of
usage and the security provided by these currency mediums are as follows.
3.2 Credit Card
Credit cards are payment devices that allow the consumer to make purchases within
certain guaranteed limits as defined by the issuer of the card. To use a credit card in most
cases it is sufficient to present the merchant with the card number and the cardholder's
name and expiration date of the card. These data can be conveniently transmitted over
the Internet. Furthermore, credit cards process funds by electronic means. The user has
to swap the card in the card reader machine then the machine asks for authentication
information like secret password etc. Later the user is allowed to perform the transaction.
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Disadvantages:
Instant clearing of funds is not possible.
User is always under the pressure of limits on purchase defined by the issuer of the
card and also every transaction involves certain charges.
Insecure transactions using fixed encryption.
The card has to be renewed once it is expired.
3.3 Smartcard
A smartcard resembles a credit card except that it has a microchip embedded within
it, which allows the smartcard to store information and sometimes to even perform simple
calculations. Common smartcard chips typically holds about 8,000 bytes (characters) of
information, which enables the smartcard to perform a variety of functions such as
identification, storing bank account information and holding digital cash. Payment
information in the form of currency value is stored on this chip and can be retrieved with
specially designed card readers.
Disadvantages:
Insecure transactions using fixed encryption.
Risk of data loss due to chip failure.
3.4 Electronic Purses and Debit Cards
Despite the increasing flexibility, relationship-based cards are credit based and
settlement occurs at the end of the billing cycle. There remains a need for a financial
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Money Pad- The Future Wallet 2011-12
instrument to replace cash. To meet this need, banks, credit card companies, and even
government institutions are racing to introduce "electronic purses," wallet-sized smart cards
embedded with programmable microchips that store sums of money for people to use instead
of cash for everything from buying food, to making photocopies, to paying subway fares.
3.4.1 The Electronic Purse Works in the Following Manner
After the purse is loaded with money, at an ATM or through the use of an
inexpensive special telephone, it can be used to pay for, say, candy in a vending machine
equipped with a card reader. The vending machine need only verify that a card is authentic
and there is enough money available for a chocolate bar. In one second, the value of the
purchase is deducted from the banker on the card and added to an e-cash box in the vending
machine. The remaining balance on the card is displayed by the vending machine or can be
checked at an ATM or with a balance-reading device. Electronic purses would virtually
eliminate fumbling for change or small bills in a busy store or rush-hour toll booth, and
waiting for a credit card purchase to be approved. This allows customers to pay for rides and
calls with a prepaid card that "remembers" each transaction. And when the balance on an
electronic purse is depleted, the purse can be recharged with more money. As for the vendor,
the receipts can be collected periodically in person—or, more likely, by telephone and
transferred to a bank account. While the technology has been avaikble for a decade, the cards
have been rektively expensive, from $5 to $10. Today the cards cost $1, and special
telephones that consumers could install at home to recharge the cards are projected to cost as
little as $50. A simple card reader would cost a merchant less than $200.
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Money Pad- The Future Wallet 2011-12
3.5 Electronic Checks
Electronic checks are another form of electronic tokens. They are designed to
accommodate the many individuals and entities that might prefer to pay on credit or through
some mechanism other than cash. Buyers must register with a third-party account server
before they are able to write electronic checks. The account server also acts as a billing
service. The registration procedure can vary depending on the particular account server and
may require a credit card or a bank account to back the checks. Onceregistered, a buyer can
then contact sellers of goods and services. To complete a transaction, the buyer sends a check
to the seller for a certain amount of money. These checks may be sent using e-mail or other
transport methods. When deposited, the check authorizes the transfer of account balances
from the account against which the check was drawn to the account to which the check was
deposited. The e-check method was deliberately created to work in much the same way as a
conventional paper check. An account holder will issue an electronic document that contains
the name of the payer, the name of the financial institution, the payer's account number, the
name of the payee and amount of the check. Most of the information is in encoded form.
Like a paper check, an e-check will bear the digital equivalent of a signature: a computed
number that authenticates the check as coming from the owner of the account. And, again
like a paper check, an e-check will need to be endorsed by the payee, using another electronic
signature, before the check can be paid. Properly signed and endorsed checks can be
electronically exchanged between financial institutions through electronic clearinghouses,
with the institutions using these endorsed checks as tender to settle accounts.
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Advantages:
They work in the same way as traditional checks, thus simplifying customer
education.
Electronic checks are well suited for clearing micro payments; their use of
conventional cryptography makes it much faster than systems based on public-key
cryptography e-cash).
Electronic checks create float and the availability of float is an important requkement
for commerce. The third-party accounting server can make money by charging the
buyer or seller a transaction fee or a flat rate fee, or if can act as a bank and provide
deposit accounts and make money on the deposit account pool.
Financial risk is assumed by the accounting server and may result in easier
acceptance. Reliability and scalability are provided by using multiple accounting
servers. There can be an inter account server protocol to allow buyer and seller to
"belong" to different domains, regions, or countries. You all must agree that the major
issue of concern while doing paying is security. In the next section we will discuss
one of the Electronic Payment Systems that is more secure as compared to the above
discussed schemes.
3.6 New Approach
As this is an era of Internet everything is getting online like shopping, business,
banking etc. In the recent trend even money is available online at any time in the form of
digi-cash or cyber cash etc. These are the recent medium of exchange, which
arenecessary for the existence of e-banking. As in future the world is going to be paper
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less cash the existence of e-cash will lead e-banking. In future internet is going to
capture the whole world and the private currency will become the media of exchange
in e-banks replacing the government currency. Keeping this point of view in mind and
to overcome the above drawbacks of credit cards and smart cards here we present a
medium of exchange to carry digital cash wherever man wants, which we name as
"Money Pad".
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4. Money Pad
Money pad is one such medium of exchange, which aims to provide secure means
of currency exchange. It's a means that carries digital cash, as paper cash is going to extinct.
"In order to use this money pad it is necessary to have at least one e-bank in every city".
Money pad is a biometric system similar to a credit card or a smart card just like a floppy
disk. It consists of a touch sensor and magnetic disk as its peripherals. Touch sensor is used
to record the fingerprint of the user. Magnetic disk, which has the read and write
permission is used to hold the authentication details of the user, bank code as well as
digi-cash. The bank code and account number of the owner of this money pad is present
on the label.
4.1 Operation of Money Pad
Fig: 4.1 Money Pad
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Money Pad- The Future Wallet 2011-12
When a user wishes to have a Money Pad, he is supposed to visit a nearby bank which
has a e-bank facility. It is necessary for the new user to create a account with some
minimum balance. The authentication details alongwith his fingerprint is recorded and
stored in the data base server. The user is provided with a account number and bank code
along with his Money Pad. The Money Pad consists of stored information like account
if number, bank code (from where he has purchased this money pad) and his fingerprint.
4.1.1Transaction using Money Pad
Whenever a user wants to use the Money Pad he has to place his finger on the touch
sensor and then place it in a finger print reader. The reader will ask for bank code so that he
can enter into his e-bank, then his account number so that he can enter into his account.
After this the reader will access the fingerprint and matches with that present on the Money
Pad as well as present in the data base server. If a match occurs the reader knows that he
is anauthorised user and allows for further transactions. If not then the reader comes to
know that the user is unauthorized and a provision can be made so that the digi-cash
present in the Money Pad is e-mailed back to the authorised account holder using the user
details present in the Money Pad. As the Money Pad has read and write facility it is used
to down load digi-cash, carry on transaction and store the balance
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4.2 Why use Money pad
Instant clearing of funds: The instant clearing of funds means the end of 'float', which is
the time spent waiting for a fund transfer to clear. Payments can be instantly made
as man himself carries digi-cash with him. There is no need for any intermediate party
to clear the funds.
Avoids the insecure way of carrying money: The present trend is full of theft and
robbery. Man is in fear while he is carrying a huge amount from place to place. The
medium of exchange that is introduced (Money Pad) eliminates this fear since man need
not carry any hard cash as it is stored in the form of digital money. In case he loses the
Money Pad the provision can be made such that the lost cash can be recurred into his
own account by e-mail facility.
Provides strong security: As we know everybody has a different fingerprint it is a rare
case to have two persons with same fingerprint. Taking this into consideration Money
Pad uses Biometric Technology to provide strong security.
Can be meet by a common man: Since credit card and smart card require the facility
that a minimum deposit should be present which is very high to be meet by a
common man. Whereas Money Pad doesn't require any minimum high deposit but it
requires a small amount which can be meet by a common man.
Avoids the nuisance of renewing: Money Pad once issued is permanent, as it
doesn't require any kind of renovation.
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Money Pad- The Future Wallet 2011-12
5. Design of the system
5.1 Process in request of money pad
Fig:5.1 Process in request of money pad
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5.2 Checking for Authentication
Fig: 5.2 Checking for Authentication
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6.Technical Implementation
The Money Pad uses the Biometric Technology as the technique with which the
security is provided. Biometric Technology are used to accurately identify and verify an
individual’s identity. Thisinvolves identifying his physiological and
behavioralcharacteristics. Biometrics in general refers to the study of biological
characteristics. With reference to computer security, it refers to authentication techniques
using biological characteristics that are measurable or identifiable and unique to an
individual.
The accuracy of any biometric system is measured in two ways:
False Acceptance Rate — Where an impostor is accepted as a match.
False Rejection Rate — where a legitimate match is denied access.
Fingerprint verification is one such biometric system, which authenticates
weather the user is anauthorised person or not. It involves the user placing his finger over
glass plate, which resides over a high-resolution change coupled cameras.
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7. Fields Of Application
Applicable in e-banks and in any kind of e-transactions: The money pad device is capable
of carrying digi-cash and hence it is useful to perform any kind of e-banking or any kind
of e-transaction.
Can be used to carry out remote transactions: As digi-cash can be carried in Money
Pad it is useful to perform remote transaction like e-payments, dig-cash transfer etc.
Useful to carry Digital cash: Since in future paper cash is going to extinct, man needs a
secure means to carry digi-cash. As Money Pad provides a secure means to carry digi-
cash it will be very needful in future.
Utilization of personal data in filling order forms: The personal data stored in the Money
Pad can be used to fill order forms thus saving users time.
Applicable in m-commerce transactions: Since digi-cash is carried everywhere it is
applicable to any kind of m-commerce transactions.
Applicable in daily life: As it is useful in shopping, identification, telephone services and
licenses it is applicable in daily life also.
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8. Conclusion
For a digital currency system to attain widespread recognition and use the
following three requirements are necessary:
1. Instant clearing of funds.
2. Elimination of payment risk.
3. Secure transactions using strong encryption.
Since the Money Pad aims to satisfy the above conditions there is no doubt that in
near future it will be widely recommended for use.
Once the Money Pad is implemented it has a wide scope. Though at present we
may use finger print reader to access the digi-cash in the near future the device can be
automated into Mobile phone, Watches, Hand held devises, as well as WAP devices.
In future when internet is going to capture the world there is no requirement of any
card or pad just a small device which can recognize the finger print can be attached at any
place throughout the world. Thus requiring no device to carry money, just a man is required
to access digi-cash and proving "Man as Money". At last since Thumb
Impression is going to provide a strong base for security in the future we can predict
that "History Repeats".
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Money Pad- The Future Wallet 2011-12
References
1. Computers Today Magazine- October 2011 issues.
2. PC Quest Magazine— October 2011 issue.
Websites
1. www.goldmoney.com/futuremoney.html
2. www.nightcats.com/sales/free.html
3. www.jurpc.de/aufsatz/20010016.html
4. www.go.com
5. www.google.com
6. www.seminarsonly.com
7. www.scribd.com
Department of ISE 18 SCT Institute of Technology