Abstract: For the application of intelligent memory IC card, it is critical to design a suitable method of authentication and encryption. The characteristic of intelligent IC card and the principle of authentication and encryption method are discussed in this paper. After comparing the merits and demerits of some popular encryption algorithms, a new authentication and encryption method, which can be realized in chip economically is presented. The chief features of the method, the authentication procedure between IC card and IC card interface device and realization of our encryption algorithm are also discussed.

Key words: authentication and encryption, intelligent memory IC card, secret key manage, stream cipher, combining function