Employee badges are encoded with a private encryption key and specific personal information. The encoding is then used to provide access to the network. Which of the following describes this access…

A smartcard contains an embedded integrated circuit chip that stores private cryptographic keys and personal data. When presented to a reader, the smartcard uses its stored private key to perform authentication operations, providing strong two-factor authentication - something you have (the card) combined with something you know (a PIN), which matches the described badge behavior precisely.

A token (such as an OTP hardware token) generates time-based or event-based one-time passwords and does not store a private encryption key encoded with personal information.

Discretionary Access Control (DAC) is an access control model where resource owners set permissions; it describes a policy framework, not a physical authentication device.

Mandatory Access Control (MAC) is an access control model where a central authority enforces access based on classification labels; it is a policy model, not a physical device.