You hand the clerk your wallet and then go shopping. When finished shopping you return to the clerk. The clerk asks you which card you want to use to make the purchase and pulls out the payment card from your wallet. Then the clerk pulls out your ID and compares the two. What an invasion of privacy! But it doesn't stop there.
The clerk makes a copy of all of your credit cards and your ID and stores them in a database at the cash register. The argument is that the next time you come in to the store you don't have to hand the clerk your wallet. The clerk will already have it. A few weeks later your email spam increases because the database at the cash register was either shared, hacked, or sold. Later you find out that your credit cards have been charged by a hacker. Then your worst nightmare occurs - your identity is stolen!
We don't live this way in the brick and mortar world so why do we do it in the ecommerce (Internet) world?
The Wave paradigm allows you to keep your ID and wallet with you while you shop. It protects you from viruses, hackers, and crackers that might otherwise compromise your identity and money. How does it do this?
A chip with embedded services can reside in any consumer-based device from PC/Mac motherboards to smartcard readers. This also includes mobile phones, STBs, PDAs and GPS devices. These embedded services provide freedom and protection to the user.
The Wave Systems paradigm places the control of security, privacy, and transactions into the hands of the consumer. It does this by supplying the services that run in an embedded, real number generating (RNG), real-time clock (RTC), tamper-proof, crypto-security co-processor. Further, these services (in the form of applets) are moved through a trusted network infrastructure that Wave has built.
These services puts the user in control of the platform. The user is, for the first time, in control of his or her identity. It effectively replaces the centralized authority that is currently the operating paradigm for:
Trust of user information
Security of passwords/PINs
...which leads to "a new architecture for security and eCommerce that enables the commercial Internet to survive and convergence to thrive."