Evaluation of Distributed Intelligence on the Smart Card

TL;DR

This paper evaluates the effectiveness of on-chip risk management in smart cards for electronic cash using micro dynamic simulation to handle economic uncertainties and counterfeit threats.

Contribution

It introduces a simulation-based method to assess distributed intelligence functions on smart cards in a complex electronic cash environment.

Findings

Demonstrates detection capabilities of off-chip counterfeit systems

Provides a realistic simulation framework for electronic cash environments

Evaluates on-chip risk management performance under various scenarios

Abstract

We describe challenges in the risk management of smart card based electronic cash industry and describe a method to evaluate the effectiveness of distributed intelligence on the smart card. More specifically, we discuss the evaluation of distributed intelligence function called "on-chip risk management" of the smart card for the global electronic cash payment application using micro dynamic simulation. Handling of uncertainty related to future economic environment, various potential counterfeit attack scenarios, requires simulation of such environment to evaluate on-chip performance. Creation of realistic simulation of electronic cash economy, transaction environment, consumers, merchants, banks are challenge themselves. In addition, we shows examples of detection capability of off-chip, host based counterfeit detection systems based on the micro dynamic simulation model generated data set.