Bluetooth uses the SAFER+ algorithm for authentication and key generation. The E0 stream cipher is used for encrypting packets. This makes eavesdropping on Bluetooth-enabled devices more difficult.

Bluetooth Special Interest Group (SIG). Bluetooth wireless technology is revolutionizing personal connectivity by providing freedom from wired connections. It is a specification for a small-form factor, low-cost radio solution providing links between mobile computers, mobile phones, other portable handheld devices and automobiles, as well as connectivity to the Internet. The Bluetooth SIG, comprised of leaders in the telecommunications, computing, automotive and consumer electronics industries, is driving development of the technology and bringing it to market. The Bluetooth SIG includes Promoter member companies Agere, Ericsson, IBM, Intel, Microsoft, Motorola, Nokia and Toshiba, and thousands of Associate and Adopter member companies. The Bluetooth SIG, Inc. headquarters are located in Overland Park, Kansas, U.S.A.

Versions 1.0 and 1.0 B had numerous problems and the various manufacturers had great difficulties in making their products interoperable. 1.0 and 1.0B also had mandatory Bluetooth Hardware Device Address (BD_ADDR) transmission in the handshaking process, rendering anonymity impossible at a protocol level, which was a major setback for services planned to be used in Bluetooth environments, such as Consumerism.

Bluetooth is a radio standard and communications protocol primarily designed for low power consumption, with a short range (power class dependent: 1 meter, 10 meters, 100 meters) based around low-cost transceiver microchip in each device. Bluetooth lets these devices communicate with each other when they are in range. The devices use a radio communications system, so they do not have to be in line of sight of each other, and can even be in other rooms, so long as the received power is high enough.

Depending on the Bluetooth profiles included on the device, Bluetooth technology has the capability to wirelessly synchronize and transfer data among devices. The Bluetooth audio capabilities can be used for headset and hands free applications. The exact functionality provided by a Bluetooth enabled device depends on the Bluetooth profiles included.Depending on the Bluetooth profiles included on the device, Bluetooth technology has the capability to wirelessly synchronize and transfer data among devices. The Bluetooth audio capabilities can be used for headset and hands free applications. The exact functionality provided by a Bluetooth enabled device depends on the Bluetooth profiles included.

Bluetooth was initiated by Ericsson, IBM, Intel, Nokia and Toshiba in early 1998. These companies later formed a special interest group known as the Bluetooth SIG. The Bluetooth 1.0 specifications were released on July 26, 1999, but the technology has only recently become inexpensive enough for widespread use.

Bluetooth wireless technology is a de facto standard, as well as a specification for small-form factor, low-cost, short range radio links between mobile PCs, mobile phones and other portable devices. The Bluetooth Special Interest Group is an industry group consisting of leaders in the telecommunications, computing, and networking industries that are driving development of the technology and bringing it to market

Being an IEEE standard will be a big plus to widespread adoption of Bluetooth, and IEEE 802.15 working group for personal area networks (PAN) announced that they will be adopting Bluetooth as the IEEE 802.15 standard.

Companies likely to adopt this technology include, but are not limited to, software developers, network vendors, silicon vendors, peripheral and camera manufacturers, mobile PC and handheld device manufacturers, consumer electronics manufacturers and more. bluetooth
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Global technology leaders Ericsson, Nokia, IBM, Intel and Toshiba founded the Bluetooth SIG in 1998. These companies are now supported by over 1,000 other organizations with a wide range of expertise, including Widcomm, Inc.