TECHNICAL DETAILS OF THE PAPER
TECHNICAL DETAILS OF THE PAPER
Presently due to the usage of computers in almost all the fields the demand for the utilization of Electronic Money have 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.
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. These credit cards have several disadvantages like,
Disadvantages:
Ø Instant clearing of funds is not possible.
Ø User is always under the pressure of limits on purchase defined by the issuer of the card and also every transaction involves certain charges.
Ø Insecure transactions using fixed encryption.
Ø The card has to be renewed once it is expired.
Smartcards:
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:
Ø Insecure transactions using fixed encryption.
Ø Risk of data loss due to chip failure.
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 are necessary for the existence of e-banking. As in future the world is going to be paper 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”.
NEXT COMING:::MONEY PAD & OPERATION OF MONEY PAD
