Cryptographic iButton

Dallas Semiconductor Turns on Internet Commerce at the Touch of a Button

Dallas - "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) today announced development of the Cryptographic iButton(tm), 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 communication 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.

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 communication: 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 re-activation 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.

"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 $0.01 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.

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 Cryptographic 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.