The plastic card invasion

The plastic card invasion.

The tendency of modern data-driven economies is to structure economic activity in such a way that an increasing amount of data is generated. For example, the fact that only a few years ago few people in continental Europe used a credit card, and that now almost everybody who has a bank account also has a credit card, shows that payment by credit card is preferred to anonymous cash transaction. If somebody pays by credit card, there are computers that register the transaction. They record who paid what amount where, and for what purpose. This is valuable information. It allows businesses to "better know their customers". Credit card companies today belong to the largest data repositories anywhere. However, credit card companies have tried to introduce cash cards, or "electronic purses", plastic cards which can be used in lieu of cash in shops - a type of payment, that is not really catching on. In the small town of Ennis, Ireland's "information age town" a field test carried out by Visa, found that people are extremely reluctant to change their cash into bits. "It is just too modern", was the conclusion of an Ennis shopkeeper.

Credit cards may be the most common, but certainly not the only way in which an economic activity produces a data surplus. In the end, the data surplus generated by a credit card is limited to just a few indicators. The tendency of the data body industry is to collect as much data as possible from each single transaction. Therefore, a range of new plastic card applications is emerging.

Most big retailers or service industries, offer customer cards which reward customers with certain discounts or gifts when used frequently. However, the cost of these discounts is easily set off by the value consumer data that is generated each time a card is pulled through the magnetic reading device. Frequent-flyer cards are among the most common plastic data-collecting devices. Often such frequent-flyer cards are also credit cards, in which case travel and consumption data are already combined at the point of sale, creating further rationalisation of the process.

Electronic networks have created a general tendency to move to move marketing decisions to the point of sale, rather than locating them in central locations. This way, the marketing process becomes cheaper and more efficient for the company.

The ideal situation for the data body industry and for government bureaucracy would be a complete centralised storage and management of people's data, and a collection process the pass unnoticed and ensures that the data in question are always current. Many efforts in this direction have been undertaken. One of the most recent such projects is called the smart card. Also referred to as chip cards (because it operates not just with a magnetic stripe but also an computer chip) smart cards are multi-application "intelligent" plastic cards that carry a lot more than the usual information about its holder. For example, a smart card can carry details about right of access to facilities, credit information, social security, and electoral status all in one. Technically there are no limits to the type of information stored on smart cards. In principle it is possible to store an individual's entire data body on a card. Not surprisingly, smart card technologies have been most readily accepted in places with a lack of a privacy protection culture, such as the US, the UK, Spain, and some Latin American Countries.

The Irish town of Ennis, although striving to become "one of the technologically most advanced towns in the world" may have frustrated the expectations of the plastic card industry. Yet this is only a minute, if embarrassing, setback on the path towards global rationalisation of data collection. The economic benefits which the plastic card data collection technologies promises for retailers, E-commerce, marketing and bureaucracies all over the world have given rise to a wealth of research programmes, field tests, projects and government policies, all aimed at promoting the data body economy and adopting it as the business model of the future.

Links to plastic card trade associations:

Card Europe - Association for Smart Card and Related Industries

AIM - Global Trade Association for Automatic Identification and Data Collection

Card Forum

Smart Card Industry Association

Links to plastic card research programmes:

MIT (Massachusetts Institute of Technology)

Ohio University

Pittsburgh University

Cranfield University

Links to publications:

Card Technology Magazine

Links to EU research programmes

ADEPT2

COCLICO

COST219

DISTINCT

SAMPO

SATURN

SOSCARD

Producers

Schlumberger

Gemplus

Bull

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How the Internet works

On the Internet, when you want to retrieve a document from another computer, you request a service from this computer. Your computer is the client, the computer on which the information you want to access is stored, is called the server. Therefore the Internet's architecture is called client-server architecture.

A common set of standards allows the exchange of data and commands independent from locations, time, and operating systems through the Internet. These standards are called communication protocols, or the Internet Protocol Suite, and are implemented in Internet software. Sometimes the Internet Protocol Suite is erroneously identified with TCP/IP (Transmission Control Protocol / Internet Protocol).

Any information to be transferred is broken down into pieces, so-called packets, and the Internet Protocol figures out how the data is supposed to get from A to B by passing through routers.

Each packet is "pushed" from router to router via gateways and might take a different route. It is not possible to determine in advance which ways these packets will take. At the receiving end the packets are checked and reassembled.

The technique of breaking down all messages and requests into packets has the advantage that a large data bundle (e.g. videos) sent by a single user cannot block a whole network, because the bandwidth needed is deployed on several packets sent on different routes. Detailed information about routing in the Internet can be obtained at http://www.scit.wlv.ac.uk/~jphb/comms/iproute.html.

One of the Internet's (and of the Matrix's) beginnings was the ARPANet, whose design was intended to withstand any disruption, as for example in military attacks. The ARPANet was able to route data around damaged areas, so that the disruption would not impede communication. This design, whith its origin in strategic and military considerations, remained unchanged for the Internet. Yet the design of the ARPANet's design cannot be completely applied to the Internet.

Routing around depends on the location of the interruption and on the availability of intersecting points between networks. If, for example, an E-mail message is sent from Brussels to Athens and in Germany a channel is down, it will not affect access very much, the message will be routed around this damage, as long as a major Internet exchange is not affected. However, if access depends on a single backbone connection to the Internet and this connection is cut off, there is no way to route around.

In most parts of the world the Internet is therefore vulnerable to disruption. "The idea of the Internet as a highly distributed, redundant global communications system is a myth. Virtually all communications between countries take place through a very small number of bottlenecks, and the available bandwidth isn't that great," says Douglas Barnes. These bottlenecks are the network connections to neighboring countries. Many countries rely on a one single connection to the Net, and in some places, such as the Suez Canal, there is a concentration of fiber-optic cables of critical importance.

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Invention

According to the WIPO an invention is a "... novel idea which permits in practice the solution of a specific problem in the field of technology." Concerning its protection by law the idea "... must be new in the sense that is has not already been published or publicly used; it must be non-obvious in the sense that it would not have occurred to any specialist in the particular industrial field, had such a specialist been asked to find a solution to the particular problem; and it must be capable of industrial application in the sense that it can be industrially manufactured or used." Protection can be obtained through a patent (granted by a government office) and typically is limited to 20 years.

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SIGINT

Signals Intelligence (SIGINT) is a category of intelligence comprising, either individually or in combination, all communications intelligence, electronics intelligence, and foreign instrumentation signals intelligence, however transmitted. The intelligence derived from communications, electronics, and foreign instrumentation signals.

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