Digital Cash

by on January 24, 2007 at 7:32 am in Uncategorized | Permalink

A glamorous Whole Foods market just opened in my neighborhood.  You can pay for your groceries using just the swipe of your fingerprint.  Cool.

Dave Meleney January 24, 2007 at 8:09 am

John Mackey, CEO of WholeFoods, “Globalization is the most caring and compassionate strategy we can implement to help the developing world lift itself out of poverty. This is the simple truth. But how many people understand this truth? The Left has convinced the idealistic young that globalization is harming the developing world — that it is a plot by greedy corporations to rule the world. The freedom movement has a responsibility to explain the wisdom of globalization and to hold it up as a noble ideal. ” …from his Action Plan
entitled………Winning the Battle for Freedom and Prosperity”

http://www.libertyunbound.com/archive/2006_06/mackey-winning.html

Christopher Monnier January 24, 2007 at 9:12 am

Cub Foods (owned by Supervalu) in Minneapolis has had this for a while, but I’m hesitant to sign up for the program and have my fingerprints floating around on some database. Is there any reason to believe that, if for some reason I was suspected of a crime, the government wouldn’t subpoena Cub Foods for my fingerprint so they could cross-reference the crime scene fingerprints against mine?

Brian January 24, 2007 at 9:31 am

It was either here or in a television commercial where I saw that UPS can now track packages based on bar codes, so when one is scanned, they will know where it is. Complimenting a customer one night on his awesome looking phone, I mentioned this, and he told me that while the technology wasn’t there yet, they would soon be able to do something similar for appliances. So if someone tried to steal a refrigerator, they’d know how to track the person. It’s pretty cool, but at the same time, I can’t help but think, Big Brother is coming.

mkl January 24, 2007 at 9:38 am

If they can get it all the way down to just a swipe of the finger that would be great. They need to do something about the part where $500 charges for a week’s groceries end up on your Visa bill. Am I alone in suspecting organics are primarily a scheme to triple your food bill?

Peter January 24, 2007 at 11:25 am

I don’t understand why people complain so much about Whole Foods prices. When author Tim Harford in The Undercover Economist examined prices at WF and Safeway on the exact same goods he didn’t find much of a difference.

That’s correct. Why Whole Foods has the perception of being expensive is that many shoppers buy much fancier items than they would at a run-of-the-mill supermarket.

Dean January 24, 2007 at 12:38 pm

Fingerprints are unique, but hardly secret. We leave them everywhere. Off the top of my head I presume that WF is using a print scanner to generate a unique fingerprint ID that is in turn used to access my credit information in their database. IOWs, its a password.

The trouble is, its not a secret password. Anyone with a finger print scanner can discover my print ID easily enough. Furthermore, if my account is breached, I’m going to have a difficult time changing this password.

Mike January 24, 2007 at 1:30 pm

Security is based on three things: Something you have, something you know, and something you are.

Credit cards are “something you have”, your signature is “something you know” combined a bit with “something you are”, while fingerprints are solely “something you are”.

The more high end fingerprint scanners check for 1) warmth and 2) pulse. But even those can be defeated by pressing a finger on top of a thin copy of the fingerprints lifted off a cup with household items.

Fingerprints are perhaps the most convenient form of “something you are”. But as I mentioned is easily defeated.

Truly, the cost of beating credit cards (which is quite a simple procedure) is pretty high due to expensive equipment, but all but the most sophisticated of fingerprint scanners can be circumvented relatively cheaply. But the semblance of security is certainly comforting :)

Both biometrics and the credit card systems concentrate on the 2 weaker parts of the 3 pillars of Authentication. “Something you know” is much harder to copy/extract. How about a written passphrase?

A hybrid system might improve over it slightly, by integrated biometrics data, or SecureID-type tokens. But the added security of that will be quite miniscule relative to the cost of implementation.

The handwritten passphrase has the following advantages: Can be quite long, relatively cheap to automatically process, can be easily verified by humans. Might be a bit less convenient than swiping your fingerprint, but it also means you still don’t have to carry any cards, etc.

MaverickRonin January 24, 2007 at 4:13 pm

Biometrics is a terrible user authentication system. Whatever the system it will eventually be hacked through some type of emulation, just like Mythbusters showed with fingerprint scanners. It may be a difficult ‘password’ to guess but it’s one you can never change. You only have 10 fingers for print scans, and 2 eyes for iris scans and then your out of luck. Of course there are many more unique biometric characteristics left after that but the equipment needed to handle so many different body parts is not worth the cost when others can develop stronger hashing and encryption algorithms.

Curtis January 24, 2007 at 5:32 pm

So why hasn’t this technology taken off? For a crowd familiar with the “Left Behind Series” (http://www.marginalrevolution.com/marginalrevolution/2005/10/strange_tabarro.html) you should realize that this brings us one step closer to the “mark of the beast” (http://www.marginalrevolution.com/marginalrevolution/2003/12/credit_cards_un.html)
–Insert sarcasm here.

Bill Stepp January 24, 2007 at 11:05 pm

To Brian,

UPS’s tracking technology is overkill, to say the least. Do you really need to
know where your package is every step of the way? Isn’t it good enough that it
gets delivered?
When was the last time you read about a thief stealing a fridge–or any other
appliance? Don’t thieves concentrate on valuable things such as cash, jewelry,
and art? Does your fridge have a high street value compared to the cost of
fencing it?

Rob C. January 25, 2007 at 9:15 pm

In response to MaverickRonin, terrific point about it being easy to hack, but I think that the goal with this especially at a grocery store is less to make an unbreakable security device and moreso to come up with something that is decent and impossible to forget. A better credit card, or a long alphanumeric password can be strong but they can misplaced or forgotten.

La'Tasha January 29, 2007 at 8:19 pm

This is a great step in technology and also a great step for the United States economy. If it is as simple as a scan of your finger print there will be more than likely an increase in national spending. Having this available will also help with security reasons. There will be no more issues with stolen cards or even stolen identity. I believe this is a great idea and other businesses should adapt to the same process!

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