The Octopus Card – An RFID Revolution
Introduction
Radio Frequency Identification (RFID) technology is familiar with by most Hong Kong People. We found that Octopus card system is a proverbial example, which is now the world's leading and most extensive rechargeable contactless stored value smart card system used to transfer electronic payments in online or offline systems in Hong Kong. RFID technology is commonly used by people from every walk of life.
The Octopus card is in different variety layer with the highest penetration, the highest transaction volume and the widest scope of usage in future. In this project, we are going to discuss the process and development of RFID technology within the Octopus Card system.
The Octopus
The Octopus card is a stored value smart card that can be reloaded and cannot be contacted. It is mainly used for transfer of electronic payments in online or offline systems in Hong Kong. The card was originally launched in September of 1997. Its original purpose was to collect fares for the city’s mass transit system. Since then, the Octopus card system has grown into a widely used payment system for virtually all public transport in Hong Kong. Also, it is used to pay purchases from supermarkets, convenience stores, fast-food restaurants, car parks, on-street parking meters, and many other point-of-sale applications such as vending machines and service stations. Moreover, it is also used to access control to schools, apartments and offices. Some charities even accept Octopus cards for donations.
Octopus is one of the world’s most successful electronic cash systems. Today, the card has over 14 million in circulation, which is twice the population of Hong Kong. Octopus Cards Limited is the operator of the Octopus system. It is a joint venture between MTR Corporation and other transport providers in Hong Kong.
MTR’s own experts designed the Octopus system through an open tender, AES ProData (Hong Kong) Limited, now known as ERG Transit Systems. ERG built a number of the components, including the back-end systems. Octopus undertakes its own maintenance, operations and development. In 2005 however, Octopus replaced the central transaction clearing house with its own system.
Hong Kong is the world’s first major public transport system that uses the Sony 13.56 MHz FaliCa radio frequency identification (RFID) chip (and other related technology) which is used by the Octopus card. Physical contact is not really required as the system is “touch” and “go”. Users need only hold the card in close proximity of the reader. Data is transmitted at up to 212 kbit/s (the maximum speed for Sony FeliCa chips), compared with 9.6 kbit/s for Mondex and Visa Cash.
During the development of Octopus back in 1997, there were still no standards in the nasecent industry. Because of this, Octopuses still uses a nonstandard system for RFID instead of the ISO 14443 standards.
The Octopus card uses uses two-way authentication based on public key infrastructure (PKI). Data communications to and from the card are only established when mutually authenticated security handshaking is verified followed by transfer of encrypted data.
Concerns and Controversy
A primary security concern surrounding RFID technology is the illicit tracking of RFID tags. Tags which are world-readable pose a risk to both personal location privacy and corporate/military security. Such concerns have been raised with respect to the United States Department of Defense's recent adoption of RFID tags for supply chain management. More generally, privacy organizations have expressed concerns in the context of ongoing efforts to embed electronic product code (EPC) RFID tags in consumer products.
Moreover, some cryptographic protocols are trying to aim for privacy against unauthorized readers. A major challenge in securing RFID tags is a shortage of computational resources within the tag. Standard cryptographic techniques require more resources than are available in most low cost RFID devices. RSA Security has even patented a prototype device that locally jams RFID signals by interrupting a standard collision avoidance protocol, allowing the user to prevent identification if desired.. Various policy measures have also been proposed, such as marking RFID tagged objects with an industry standard label.
Amongst the other controversies that RFID faces are: consumer privacy, religious reactions reagarding eschtology and dispensationalism, virus threat, and RFID shielding.
Conclusion, Predictions and Enhancements
Radio frequency identification of unique products in distribution and supply chains appears to be a burgeoning revolution for some of the world's largest companies. Companies both large and small produce and distribute billions of products annually to wholesalers and retailers. Tracking shipments, monitoring and controlling inventories, and maintaining inventories represent a significant business effort.
The coming year will see RFID continue to spread implemented for a variety of new applications and could mark the start of broad adoption of RFID in the supply chain.
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