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Smart card authentication is a method that relies on a small computer chip embedded within an ID card, which is used to store and manage a variety of sensitive information, including user credentials. These smart cards can securely communicate with card readers or terminals, enabling a secure authentication process for users, such as employees in an organization.

This method is particularly effective in tracking employees’ status, as the card can be used not only for access control but also for logging in and out of different systems or facilities. The chip may also contain applications that help in managing access privileges, making it a versatile tool in network defense and internal security.

The other options involve different techniques of authentication that do not utilize a physical card with a chip. Biometric authentication relies on unique biological traits for identification. Two-factor authentication includes an additional verification method beyond just a password, such as a mobile code or biometric scan. Single sign-on authentication allows users to log in once to access multiple applications, which doesn’t specifically use a chip-equipped ID card.