A SECURE TECHNOLOGY ALLIANCE PAYMENTS COUNCIL WHITE PAPER

Blockchain and Smart Card

Technology
Version 1.0
Date: March 2017

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About the Secure Technology Alliance
The Secure Technology Alliance is a not-for-profit, multi-industry association working to stimulate the
understanding, adoption and widespread application of secure solutions, including smart cards,
embedded chip technology, and related hardware and software across a variety of markets including
authentication, commerce and Internet of Things (IoT).
The Secure Technology Alliance, formerly known as the Smart Card Alliance, invests heavily in education
on the appropriate uses of secure technologies to enable privacy and data protection. The Secure
Technology Alliance delivers on its mission through training, research, publications, industry outreach
and open forums for end users and industry stakeholders in payments, mobile, healthcare, identity and
access, transportation, and the IoT in the U.S. and Latin America.
For additional information, please visit www.securetechalliance.org.

Copyright © 2017 Secure Technology Alliance. All rights reserved. Reproduction or distribution of this
publication in any form is forbidden without prior permission from the Secure Technology Alliance. The
Secure Technology Alliance has used best efforts to ensure, but cannot guarantee, that the information
described in this report is accurate as of the publication date. The Secure Technology Alliance disclaims
all warranties as to the accuracy, completeness or adequacy of information in this report. This white
paper does not endorse any specific product or service. Product or service references are provided to
illustrate the points being made.

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Table of Contents
1 Introduction .......................................................................................................................................... 5
2 Bitcoin and Blockchain Technology ...................................................................................................... 6
2.1 Technology Overview.................................................................................................................... 7
2.1.1 Basic Principles ...................................................................................................................... 7
2.1.2 Description ............................................................................................................................ 7
2.1.3 Terms and Definitions ........................................................................................................... 9
2.2 Smart Card Technology and Blockchain Applications ................................................................. 10
3 Blockchain Technology Implementations ........................................................................................... 12
3.1 Cryptocurrency............................................................................................................................ 12
3.1.1 Implementation Considerations and Challenges ................................................................ 13
3.1.2 Real World Examples .......................................................................................................... 14
3.2 Cryptocurrency Vault .................................................................................................................. 14
3.2.1 Implementation Considerations and Challenges ................................................................ 15
3.2.2 Real World Examples .......................................................................................................... 16
3.3 Communications Front-End for NFC to Replace QR Codes......................................................... 17
3.3.1 Implementation Considerations and Challenges ................................................................ 17
3.3.2 Real World Examples .......................................................................................................... 18
3.4 Interbank Funds Transfer ............................................................................................................ 19
3.4.1 Implementation Challenges and Considerations ................................................................ 20
3.4.2 Real World Examples .......................................................................................................... 21
3.5 Asset Registry .............................................................................................................................. 22
3.5.1 Implementation Considerations and Challenges ................................................................ 23
3.5.2 Real World Examples .......................................................................................................... 23
3.6 Anti-Counterfeiting for Asset Tracking ....................................................................................... 24
3.6.1 Implementation Considerations and Challenges ................................................................ 25
3.6.2 Real World Examples .......................................................................................................... 26
3.7 Internet of Things ........................................................................................................................ 26
3.7.1 Implementation Considerations and Challenges ................................................................ 26
3.7.2 Real World Examples .......................................................................................................... 27
4 Challenges for Blockchain Implementations ...................................................................................... 28
4.1 Permissioned or Permissionless Blockchain ............................................................................... 28

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 4.2 Scalability .................................................................................................................................... 28
4.3 Standards .................................................................................................................................... 29
4.4 Reputation and Consumer Perception ....................................................................................... 29
4.5 Security Considerations .............................................................................................................. 29
4.6 Legal and Regulatory Considerations.......................................................................................... 30
5 Conclusions ......................................................................................................................................... 32
6 Publication Acknowledgements ......................................................................................................... 33

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1 Introduction
Blockchain technology, the potentially revolutionary technology that implements bitcoin transactions, is
suitable for use in a wide variety of applications. Both startups and established players are deploying or
piloting blockchain applications; over $1 billion has been invested in blockchain and bitcoin startups
since 2009, with 60 percent of that funding occurring since the beginning of 2015.1
A blockchain is a distributed database that maintains a dynamic list of records, secured against
tampering and revision.2 Blockchains can be used as distributed ledgers that allow financial (and other)
transactions to be recorded and verified cryptographically without the requirement for a central
clearinghouse or authority.
This white paper was developed by the Secure Technology Alliance Payments Council to stimulate
industry discussion on innovative blockchain applications. The white paper provides a primer on
blockchain technology, including the role of the secure element and of smart card technology in
securing transactions. It describes use cases that are currently commercially available or being piloted
and discusses common implementation considerations.

1 CB Insights webinar, “The State of Blockchain,” https://www.cbinsights.com/research-blockchain-transcript.

2 Wikipedia, https://en.wikipedia.org/wiki/Block_chain_(database).

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