Smart cards are small electronic devices about the size of a credit card that contain memory and an embedded integrated circuit chip. They provide identification, authentication, and data storage. A smart card typically contains RAM, ROM, EEPROM, and optionally a crypto-coprocessor. Smart cards were invented in 1968 and have a variety of applications including banking, mobile phones, healthcare, and access control. They provide advantages such as flexibility, cost effectiveness, security, and data integrity but also have disadvantages including fees, liability if lost or stolen, limited storage, and technology support issues.