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The idea as suggested in this computerworld column, is that the next generation smart phones are to replace all passwords, credit cards, car keys and other identification and authentication functions.

The potential problem I see with Nexus S and the rumored iPhone5′s NFC implementation would be if they leave out ARM’s TrustZone security system. If those NFC chips are nothing much more than some types of RFID tags for near field authentication, that wouldn’t be enough. We need devices with 100% secure modes that are built in the hardware and that are not improvised in software.

As you can see in the video below, as far as I understand it, TrustZone uses a hardware mechanism in the phone’s hardware to provide for 100% security in authentication, which could be used not only for secure payments, but for authentication with any kinds of online banking and any passwords for any type of website.

The idea is that you need to be able to put your phone in a 100% secure mode from which the authentication happens in some 100% secure way. The secure mode is a parallel OS mode on the phone, which cannot be hacked nor cannot display spoofed authentication screens.

Here’s a usage scenario. You click on any website with a login, be it gmail or any other website, instead of typing in your password on the screen, which could have keyloggers and trojan horses, a login prompt automatically displays on your phone with a light indicator elsewhere than on the screen of your phone lights up letting you know you are in 100% secure mode, the secure mode asks you to authenticate for a given authenticated domain login, you type in your 4-number pin code on your phone in the secure mode, that’s it, your phone authenticates your browser logon, no matter what site it is. Basically, your phone becomes as secure as those calculator types authentication systems that online banks use. Those are basically unhackable, because encryption can be so strong, it would take billions of years for all the computers in the world to find the key to powerful encryption. The only way for someone to access your online accounts would be for them to steal your phone and to know your pin code.

I’d like to know, does Nexus S or any upcoming “NFC” type implementations include something like the ARM TrustZone to provide for true secure online authentication or do we need to wait for yet another generation of devices before we have true meaningful online security?

Related articles

• iPhone 5 and iPad 2 NFC confirmed tip engineers; free NFC payment terminal considered (slashgear.com)
• Apple Aims To Take NFC Mainstream; Perhaps The Greatest Trick They’ve Ever Pulled? (techcrunch.com)
• Apple job posts point to built-in NFC capabilities for iPad / iPhone (engadget.com)
• Nexus S NFC Writing Capabilities Included, But Hidden (pocketnow.com)
• Stanford researchers demo social NFC applications on the Nexus S (engadget.com)

There are some talks about Nokia CEO giving clues about Nokia announcing the support of another OS soon. I think it definitely has to be Android support.

Nokia is the biggest phone maker in the world, they make about half a billion phones each year, it’s insane. The thing is, Nokia makes phones that sell at an average below $20 each, most are being sold in developing countries actually. And even though Nokia makes about 15 times more phones than Apple, they make less than 15 times the profit that Apple does.

Nokia could make the industrys best sub-$100 Android phones, at that price with no subsidy or subscription contracts required. That would completely disrupt the whole iPhone and high-end Android and WP7 market in one swoop. That would focus the market in the area where Nokia is best, at making small margins and large volume.

Nokia could design their own Nokia Android Marketplace if they want, I don’t think they should, instead they have to demand custom standard Google Marketplace, as Google does share in App sales profits with the manufacturer.

Nokia could do all kinds of custom Android UI customizations, as Motorola, Sony-Ericsson, HTC, Samsung, Acer, Lenovo and others have done. I don’t think they should. They should give up on the urge to differentiate in UI designs and instead concentrate on differentiation in hardware design and smooth support for software features through the hardware design, that is the true purpose of a smartphone manufacturer. Give consumers vanilla Android and let consumers install alternative home replacements if they so wish to. Eventually, design a Nokia home replacement if you absolutely want, have it installed by default but absolutely allow for a full change to vanilla Android home UI in an official, not hidden, one click process.

If Nokia has “better ideas” in terms of things such as integrating Qt development framework with Android, suggest more Native Applications Support (such as faster improvements to the Android NDK) or in terms of pushing Android towards more openness in the development process, then “simply” join Google’s Open Handset Alliance and put your full influence on improving the platform for everyone. Be nice.

I am sure Nokia has had a hundred engineers preparing their Android phones for more than a year now, it had probably been some secret projects in their R&D labs that they have been preparing just in case they later find out they need to go the Android route. A big company like Nokia can not afford not to look into Android as the open source releases are released for all to experiment with for free, Nokia could not afford not to prepare some designs just in case, and this is the case for it now.

I think the industry should prepare for the idea that Nokia might make excellent Android phone series to be sold unlocked below $100, below $200, and even some high-end at those below $400 price points. But I think Nokia could aim at the below $200 to feel as good as other companies high-end devices. That is, of course, only, if Nokia is not too much in bed with carriers in a way to prevent themselves from planning to take significant smartphone markeshare overnight by being the mega-disruptor of the Smartphone market, instead of doing like most others do which is to focus on maximizing margins and conspiring with the carriers to trick most consumers into 2-year contracts that are so lame.

What do you think Nokia wants to do and what are they able to do? Post your opinions in the comments.