Dallas Semiconductor turns on Internet commerce at the touch of abutton

[Robert Hettinga <rah@shipwright.com>]

Dallas Semiconductor turns on Internet commerce at the touch of
a button; wearable computer chip generates uncrackable codes using public
key cryptography
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    DALLAS--(BUSINESS WIRE)--Oct. 7, 1996--"Attention,
cyber-shoppers!  Your `electronic wallet' is almost ready."
    Internet users have been waiting for personal, trusted computing
to conduct commercial transactions -- mere pennies or big bucks.
Now it has been successfully demonstrated.
    Dallas Semiconductor (NYSE: DS) Monday announced development of
the Cryptographic iButton, a very personal computer in a 16mm,
stainless steel case that provides for the safe transfer of Internet
e-mail -- including credit card numbers -- even if the client
computer, software and communications links are not trustworthy.
The Crypto iButton is the result of a multi-year development at
Dallas Semiconductor to reach the pinnacle of computer security.
    "Think of it as a wearable, digital accessory," said Michael
Bolan, vice president of marketing for the 12-year-old manufacturer
that produces 120 million chips annually.  "You can attach it to
your wallet, keychain, jewelry (ring or bracelet), wrist watch, or
badge.  With the electronic wallet, the iButton communicates without
the user even having to open the wallet, providing convenience and
security.
    "This credential cannot be duplicated because it contains
information that is never revealed.  It positively authenticates a
person to a server computer or to another person using two-factor
security: personal possession of the iButton plus a PIN (Personal
Identification Number)," Bolan explained.
    iButton users will have universal access to their World Wide Web
e-mail at public Internet connections (hotels, airports, kiosks) and
still be confident that their mail is kept private.  Sensitive
information like credit card numbers can be transmitted safely by
secure e-mail using the Cryptographic iButton.  Mobile employees --
so-called "road warriors" -- can improve their productivity with
economical, secure access to corporate databases.

iButton Overcomes PC Vulnerability

    When software and PC hardware are hacked, information remains
safe in the physically secure iButton chip.  In one service model,
the iButton chip randomly generates a public and a private key set.
The private key is known only to the Cryptographic iButton; it is
never revealed, not even to its user.  The large key size of 1024
bits (308 decimal digits) makes guessing insurmountable.
    The iButton ensures both parties are truly authorized to
communicate by rendering messages into unbreakable digital codes
using its high-speed math accelerator.  The Crypto iButton addresses
both components of secure communications: authentication and safe
transmission.
    Physical attacks on the iButton by technologically savvy
criminals are thwarted.  The continuous steel perimeter triggers a
tamper response upon intrusion.  Critical security parameters,
including the private keys, are rapidly erased.
    Vulnerabilities of Smart Cards to certain physical attacks,
recently reported by computer scientists at Bellcore, were
anticipated during the design of the Cryptographic iButton.  Even if
the iButton is subjected to extraordinary physical stresses, it
does not leak out information that can be useful for inferring
secret data.
    Included on the monolithic chip is a True Time Clock, a
real-time clock with tamper evidence.  It provides a trusted time
stamp and audit trail for microcash metering or other off-line
transactions, as well as aiding in the detection of fraud by putting
time limits on service.  When the clock reaches a pre-set time, the
chip self-expires and requires reactivation before service can be
renewed.
    Unlike a loose plastic card, the iButton stays attached even
while communicating, making misplacement less likely.  Messages or
transactions are authorized only after the PIN is validated by the
iButton, the same technique automatic teller machines use to
dispense cash.

Microcash Stimulates I-Commerce

    "We don't expect to make money obsolete, although our small cash
version of the iButton is currently doing millions of transactions
as an electronic coin purse for mass transit riders in Istanbul,
Turkey and for patrons of Laniel vending machines in Canada," said
Bolan.
    "One strength of the Crypto iButton," he continued, "is its
ability to meter extremely small amounts economically in off-line
distributed systems.  A secure micro-payment system for electronic
property will ultimately enrich the content on the Internet by
giving producers a monetary incentive to distribute their work.
    "For example, reading the front page of a newspaper may tabulate
only 1 cent worth of microcash in a subscription meter while
downloading a Java software applet may tabulate a larger amount in a
copyright meter.  The multiple meters of the iButton count the usage
information over the network for easy revenue collection by the
service provider's clearinghouse," he said.
    One of the earliest anticipated uses will be by the U.S. Postal
Service, which has already notified its postal meter customers that
it will replace its current postage meters using a Postal Security
Device (PSD) connected to a PC.  Using the Cryptographic iButton as
a PSD, the USPS will be able to refill its postage meters over the
Internet.

Implementation and Availability

    The iButton is touched to a Dot Receptor which can be fitted to
any of the 200 million existing personal computers in a matter of
minutes without opening the computer's enclosure.  The Dot Receptor
is cabled to the printer port, forming a $15 pipeline to the PC.
In this way the iButton can be the physically secure co-processor to
any PC.
    Dallas Semiconductor will activate Crypotographic iButtons
issued to individuals or co-issued by service providers.  The
devices will be activated from the manufacturer's Web site.
    Dallas Semiconductor plans to begin delivering the Cryptographic
iButton and Dot Receptor in the first quarter of 1997.  The company
projects that it can drive down the cost of using its Cryptographic
iButton to $12 per year.  The street price of the Dot Receptor is
$15.  Less sophisticated versions of the iButton are currently
available.  The simplest version, the DS1990, costs $1.59 in
1,000-piece quantities.
    For more information, visit the iButton Web site at
www.iButton.com.
    Dallas Semiconductor (NYSE:DS) designs, manufactures and markets
CMOS chips and chip-based subsystems.  In its 12-year history, the
company has sold its products to more than 8,000 customers
worldwide.  These include Original Equipment Manufacturers (OEMs) in
instrumentation, factory automation, personal computers, office
equipment, telecommunications, medical equipment, and mainframe
computers.  Chips and subsystems are sold through a direct sales
force, software developers, distributors and manufacturers'
representatives worldwide.



-----------------
Robert Hettinga (rah@shipwright.com)
e$, 44 Farquhar Street, Boston, MA 02131 USA
"'Bart Bucks' are not legal tender."
                -- Punishment, 100 times on a chalkboard,
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The e$ Home Page: http://www.vmeng.com/rah/