Seminar

report on

Money pad

Presented by:

Srikanth
Ramineni

2/3 M.C.A

Regd No.y3mc23045
Abstract:
"Money in the 21st century will surely prove to be as different from the
money of
the current century as our money is from that of the previous century.
Just as fiat money
replaced specie-backed paper currencies, electronically initiated debits
and credits will
become the dominant payment modes, creating the potential for
private money to compete
with government-issued currencies." Just as every thing is getting
under the shadow of “e”
today we have paper currency being replaced by electronic money or
e-cash. Hardly a day
goes by without some mention in the financial press of new
developments in "electronic
money". In the emerging field of electronic commerce, novel
buzzwords like smart cards,
online banking, digital cash, and electronic checks are being used to
discuss money. But
how are these brand-new forms of payment secure? And most
importantly, which of these
emerging secure electronic money technologies will survive into the
next century?
These are some of the tough questions to answer but here’s a solution,
which
provides a form of security to these modes of currency exchange using
the “Biometrics
Technology”. The Money Pad introduced here uses the biometrics
technology for
Finger Print recognition. Money Pad is a form of credit card or
smartcard, which we name
so. Every time the user wants to access the Money Pad he has to make
an impression of his
fingers which will be scanned and matched with the one in the hard
disk of data base
server. If the finger print matches with the user’s he will be allowed to
access and use the
Pad other wise the Money Pad is not accessible.
Thus providing a form of security to the ever-lasting transaction
currency of the
future “e-cash”.

Keywords:
1. Money Pad - A form of credit card or smart card similar to floppy
disk, which is
introduced to provide, secure e-cash transactions.

2. Digital or Electronic Cash or Digi-cash or E-cash or Ecash or

Digital Money –

These terms are also used interchangeably, and they refer to any of
the various methods
that allow a person to purchase goods or services by transmitting a
number from one
computer to another. The numbers are issued by a bank and represent
sums of real
money. Digital cash is anonymous and reusable.

3. Personal Digital Assistance - A PDA, sometimes referred to as a

palm-top computer,
is smaller than a laptop computer and does not have as much
computing power. Used
to send email via a wireless modem, write documents in a text editor,
perform
calculations in a spreadsheet, store names and addresses, and perform
other common
business and personal tasks.
4. Biometrics Technology - Technology used to accurately identify
and verify an
individual’s identity.
5. Finger Print Reader – A machine with read/write head capable of
reading the
information stored in the Money Pad.

6. Float – The transaction in terms of digi-cash, which takes zero-sum

gain, is called float.
7. Fiat Money – Authorized money.
8. Specie-Backed – Coined money.
9. Legitimate – Law full.

Introduction:
The 21st century will not be "cashless", as many now predict. However,
it does
seem clear that the currency of the 21st century will be "paperless".
Paper currency and
checks are gradually being supplanted by smartcards, digital cash and
instant transfers of
funds. The large paper bureaucracy of banks is quickly becoming
redundant, burdensome,
even antiquated. The evolution in digital money is happening so fast
that banks cannot
adopt quickly enough and will eventually collapse like top-heavy
giants, blown over by the
winds of financial change. Maybe, or may not be, but one trend is
already clear. The wallet of the future will hold less paper cash,
coins and magnetic stripe cards. It will hold instead Money Pad
containing digital cash and other financial information,
updated — perhaps automatically — by a PDA with a satellite
communication link.
As the new technologies develop into new ways of making payment, one concern
naturally arises. Will this technology protect each individual's right to privacy while
providing the sound money needed for the economic health of communities? The answer
is simple — it depends on how the new technology is used. There is
nothing inherent in the
technology that makes it less protective of privacy and individual
rights. Advancement’s like
Biometrics Technology has made individual privacy even more
secure.
As developments in electronic money gather pace, protection of
individual rights
must be kept in focus. Because the record of most governments so far
in these early stages
of electronic commerce has been seen by many to be confrontational
and not protective of
individual rights, it is likely that the preservation of these rights is one
reason that private
currencies are likely to emerge on the Internet and to eventually play
an important role in
global commerce.
In order to protect the rights and properties of each individual we
thought of
providing a security system, which every human being can understand
and feel free to use.
Human beings feel secure when they have their own security
arrangements to protect their
rights and as well as wealth. Keeping this point of view in mind the
Biometrics Technology
is use to develop an e-cash handling system, which is similar to well
known credit cards and
smartcards. The e-cash handling system is a device that facilitates
secure currency
transactions. We call it as Money Pad which recognises Finger Print’s
of the user and
decides weather the user is a authorised person or not. Every time the
user wants to access
the Money Pad he has to make an impression of his finger, which will
be sensed and
matched with the one in the hard disk. If the finger print matches with
the user’s he will be
allowed to access and use the Pad other wise the Money Pad is not
accessible.

Technical Details Of The Paper

• Basic Of The Present System:
Presently due to the usage of computers in almost all the fields the
demand for
the utilization of Electronic Money have been increased. Payments
made today in nearly all
of the deposit currencies in the world's banking systems are handled
electronically through a
series of interbank computer networks. Credit cards and smartcards
are widely used to enter
into these interbank computer networks in order to perform
transactions. These are the
popular medium widely existing as a recent medium of currency in the
e-cash scenario. The
mode of usage and the security provided by these currency mediums
are as follows.
• Credit Card:
Credit cards are payment devices that allow the consumer to make purchases
within certain guaranteed limits as defined by the issuer of the card. To use a credit card
in most cases it is sufficient to present the merchant with the card number and the
cardholder's name and expiration date of the card. These data can be conveniently
transmitted over the Internet. Furthermore, credit cards process funds by electronic
means. The user has to swap the card in the card reader machine then the machine asks
for authentication information like secret password etc. Later the user is allowed to
perform the transaction. These credit cards have several disadvantages like,
Disadvantages:
❒ Instant clearing of funds is not possible.
❒ User is always under the pressure of limits on purchase defined by
the issuer of the card and also every transaction involves certain
charges.
❒ Insecure transactions using fixed encryption.
❒ The card has to be renewed once it is expired.

• Smartcards:
A smartcard resembles a credit card except that it has a microchip
embedded
within it, which allows the smartcard to store information and
sometimes to even perform
simple calculations. Common smartcard chips typically holds about
8,000 bytes (characters)
of information, which enables the smartcard to perform a variety of
functions such as
identification, storing bank account information and holding digital
cash. Payment
information in the form of currency value is stored on this chip and can
be retrieved with
specially designed card readers.
Disadvantages:
❒ Insecure transactions using fixed encryption.
❒ Risk of data loss due to chip failure.

• New Approach
As this is an era of internet every thing is getting online like shopping,
business, banking etc. In the recent trend even money is available
online at any time in the
form of digi-cash or cybercash etc. These are the recent medium of
exchange, which are
necessary for the existence of e-banking. As in future the world is
going to be paper less
cash the existence of e-cash will lead e-banking. In future internet is
going to capture the
whole world and the private currency will become the media of
exchange in e-banks
replacing the government currency. Keeping this point of view in mind
and to over come
the above drawbacks of credit cards and smart cards here we present
a medium of exchange
to carry digital cash wherever man wants, which we name as “Money
Pad”.
Money Pad:
Money pad is one such medium of exchange, which aims to provide
secure
means of currency exchange. It’s a means that carries digital cash, as
paper cash is going to
extinct. “In order to use this money pad it is necessary to have
at least one e-bank in
every city”.
Money pad is a biometric system similar to a credit card or a smart
card just like
a floppy disk. It consists of a touch sensor and magnetic disk as
its peripherals (Fig-1
page -8). Touch sensor is used to record the fingerprint of the
user. Magnetic disk,
which has the read and write permission is used to hold the
authentication details of
the user, bank code as well as digi-cash. The bank code and
account number of the
owner of this money pad is present on the label.

Fig-1 A Money Pad

Operation of Money Pad:
• New User: (Refer fig-2 page 10)
When a user wishes to have a Money Pad, he is supposed to visit a
near by bank
which has a e-bank facility. It is necessary for the new user to create a
account with some
minimum balance. The authentication details along with his fingerprint
is recorded and
stored in the data base server. The user is provided with a account
number and bank code
along with his Money Pad. The Money Pad consists of stored
information like account
number, bank code (from where he has purchased this money pad)
and his fingerprint.
• Transaction using Money Pad: (Refer fig-3 page 10)
Whenever a user wants to use the Money Pad he has to place his finger
on the
touch sensor and then place it in a finger print reader. The reader will
ask for bank code so
that he can enter into his e-bank, then his account number so that he
can enter into his
account. After this the reader will access the fingerprint and matches
with that present on
the Money Pad as well as present in the data base server. If a match
occurs the reader
knows that he is a authorised user and allows for further transactions.
If not then the reader
comes to know that the user is unauthorised and a provision can be
made so that the digicash
present in the Money Pad is e-mailed back to the authorised account
holder using the
user details present in the Money Pad. As the Money Pad has read and
write facility it is
used to down load digi-cash, carry on transaction and store the
balance.
Write Protect
Nob
Touch Sensor
Outer cover
Space For
Read/Write
Magnetic Disk
Central Hub

Why use Money pad?

• Instant clearing of funds
The instant clearing of funds means the end of 'float', which is the time spent
waiting for a fund transfer to clear. Payments can be instantly made as man himself
carries digi-cash with him. There is no need for any intermediate party to clear the funds.
• Avoids the insecure way of carrying money
The present trend is full of theft and robbery. Man is in fear while he is
carrying a
huge amount from place to place. The medium of exchange that is
introduced (Money Pad)
eliminates this fear since man need not carry any hard cash as it is
stored in the form of
digital money. In case he loses the Money Pad the provision can be
made such that the lost
cash can be recurred into his own account by e-mail facility.
• Provides strong security
As we know every body has a different fingerprint it is a rare case to
have two
persons with same fingerprint. Taking this into consideration Money
Pad uses Biometric
Technology to provide strong security.
• Can be meet by a common man
Since credit card and smart card require the facility that a minimum deposit
should be present which is very high to be meet by a common man. Where as Money
Pad doesn’t require any minimum high deposit but it requires a small amount which can
be meet by a common man.
• Avoids the nuisance of renewing
Money Pad once issued is permanent, as it doesn’t require any kind of
renovation.

• Design of the system

• Process in request of money pad
New User
Fig -2
• Checking of authentication information
User
Fig-3
Data Base
Server
Enter a e-bank
Creates the details
of the new user and
his finger print
record
Money Pad
With
Fingerprint
Reader
Gather information
of user
Data Base
Server
e-bank
Cannot access
cash is e-mail to
owners account
Unauthorised Authorised
Information collected is
passed to the server for
verification
Request for
Money Pad
Money Pad is
issued
Create new
account

• Technical Implementation
The Money Pad uses the Biometric Technology as the technique with
which the
security is provided. Biometric Technology are used to accurately
identify and verify an
individuals identity. This involves identifying his physiological and
behavioural
characteristics. Biometrics in general refers to the study of biological
characteristics. With
reference to computer security, it refers to authentication techniques
using biological
characteristics that are measurable or identifiable and unique to an
individual.
The accuracy of any biometric system is measured in two ways:
• False Acceptance Rate – Where an impostor is accepted as a match.
• False Rejection Rate – where a legitimate match is denied access.
Fingerprint verification is one such biometric system, which
authenticates
weather the user is a authorised person or not. It involves the user
placing his finger over a
glass plate, which resides over a high-resolution change coupled
cameras. The image
captured is compared to that in the systems database and decides the
user authentication. A
finger print reader can be used for this purpose (fig-4).
Fig-4 A Finger Print Reader
Push Button

Fields Of Application:
• Applicable in e-banks and in any kind of e-transactions
The money pad device is capable of carrying digi-cash and hence it is
useful to
perform any kind of e-banking or any kind of e-transaction.
• Can be used to carry out remote transactions
As digi-cash can be carried in Money Pad it is useful to perform remote
transaction like e-payments, dig-cash transfer etc.
• Useful to carry Digital cash
Since in future paper cash is going to extinct, man needs a secure
means to
carry digi-cash. As Money Pad provides a secure means to carry digi-
cash it will be very
needful in future.
• Utilization of personal data in filling order forms
The personal data stored in the Money Pad can be used to fill order
forms
thus saving users time.
• Applicable in m-commerce transactions
Since digi-cash is carried everywhere it is applicable to any kind of
mcommerce
transactions.
• Applicable in daily life
As it is useful in shopping, identification, telephone services and
licenses it is
applicable in daily life also.

Conclusion:
For a digital currency system to attain widespread recognition and use the
following three requirements are necessary:
1. Instant clearing of funds
2. Elimination of payment risk
3. Secure transactions using strong encryption
Since the Money Pad aims to satisfy the above conditions there is no doubt that
in near future it will be widely recommended for use.
Once the Money Pad is implemented it has a wide scope. Though at
present we
may use finger print reader to access the digi-cash in the near future
the device can be
automated into Mobile phone, Watches, Hand held devises, as well as
WAP devices.
In future when internet is going to capture the world there is no
requirement of any
card or pad just a small device which can recognise the finger print can
be attached at any
place throughout the world. Thus requiring no device to carry money,
just a man is required
to access digi-cash and proving “Man As Money”. At last since
Thumb
Impression is going to provide a strong base for security in the future
we can predict
that “History Repeats”.

Acknowledgement:
The satisfaction and euphoria that accompanies the successful
completion of any
task, would be incomplete without the mention of the people who
made it possible, whose
constant guidance, support and encouragement crown all the efforts
with success.
We wish to express our sincere gratitude to Prof. B. S. Anami Director,
I.T and
Prof. J. Girimallikarjun H. O. D Computer Science Department B. E. C
Bagalkot for their
kind permission to utilise the resources of the department.
Our sincere thanks to S.G.Koolagudi, Lecturer Computer Science
Department, B.
E. C Bagalkot for having consented to be the guide, and for his
valuable guidance and
support during the preparation of this paper.
Last but not the least we would like to thank our family and our friends
who have
been a constant source of inspiration.