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Seems like in the building seurity case, that could be a huge afffordable improvement over RFID tags; I.e. Tap and get a key that you respond to wth a crypto function vs. RFID where any idiot can scan and replicate your tag.

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Nobody uses that sort of "dumb tag" RFID for building access purposes. For instance, the HID access cards use a challenge/response authentication with nonces. [0]

[0]: http://static.usenix.org/event/woot11/tech/final_files/Garci...

Thanks for sharing that. Wouldn't it still be cheaper to implement with software (and potentially more flexible) than with an integrated circuit?

How? It's a challenge/response protocol with the processing on the NFC chip/card/object.

Not sure you can copy all RFID tags; NFC is often classed as a type of RFID.

NFC is a subset of RFID.

Actually, it's the other way around. NFC is a superset of many different types of RFID standards that operate all under 13.56MHz - FeliCa, MiFARE, Topaz, ISO14443 etc in addition to include different communication protocols (SNEP for example) as well as payload standards (NDEF).

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