A smart card is a credit card-like object that has a microchip in it loaded with information that can be read by a special reader. This information is used to identify you so you can use your computer or enter a restricted physical area. A token is basically a smart card in a different form, such as a device that plugs into the USB or serial port of your computer.
Computer systems use smart cards and tokens to increase security and make sure that you are who you say you are. Some systems require you to both use a smart card and enter a password. The computer then makes sure that the password on the smart card and the password you enter are the same before providing access.
Smart cards don’t just store passwords, like a floppy disk or CD ROM might. Instead, they use advanced encryption algorithms to store passwords so that thieves cannot read them. Furthermore, some brands have special features, such as automatically destroying the card if somebody tries to enter a password too many times.
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References
- Smart Card
(Wikipedia)
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