Why are chips more secure?

What makes the new chips in the new EMV cards more secure? After all your going from a magnetic strip to a chip, it shouldn’t be that big of a deal, should it? It is.
When credit cards were first issued the magnetic strip was placed on it to hold the card’s information to make processing the transaction faster and easier. There would be no more calling the issuer and finding out if the card was over its limit or not. Now automation could handle all of that. It was great, but it was setting us up for a whole world of problems that admittedly the original designers certainly could not have envisioned. Magnetic strips can hold roughly 210 bits per inch. Just to compare the digital watch that is on your wrist has more storage capacity that a magnetic strip. In today’s terabyte world, 210 bits is a pittance. Heck this post takes up more than 210 bits of storage space.
You see the magnetic strip is unencrypted meaning if you have a reader you can just simply pluck the information off of it and you have to do no work on your end to read it. The thief can then use the information to purchase something online or other card-not-present situation or they can create a new card for themselves. The chip is designed to stop that. The information on the chip is encrypted, meaning if you do not have the cypher key, the information provided is just a bunch of numbers, letters, and symbols.
Could you imagine our military sending out unencrypted transmissions? No you can’t. Our military has been using code since it was founded in the 18th century. Yet we the consumers have been walking around with some of our most priceless information just sitting out there waiting to be plucked. It is about time that is changed. While the chip is not the end-all-be-all solution it is certainly a much needed improvement over what it is replacing, a technology that was born in the 1940s. More on that later!