Based on more than 250 patents, processes have been developed to insert a silicon chip or microprocessor into a plastic card body. The inserted component is held in place and protected by epoxy resin. Finally, there are generally external contacts or antenna built into the card and attached to the inserted silicon. While there are many types of smart cards, many with very specific functions, there are two broad categories. Microprocessor cards may have more discrete functions.
Smart cards are able to interact with other hardware in two ways.
Smart cards, properly implemented, are secure. Encrypted cards each have their own set of keys. Breaking one card is still not effective against all in a set since the mother key is not saved on the card. Still, smart cards are technology enablers, not entire solutions. Therefore, any solution will involve discussions of other technologies.