Good question & answer from NBS is is likely to be if we told you we would have to shoot you.
The answer for mere laypersons appears to be;
1. They have a propriety 2d matrix which can can contain suitable amount of data - but also huge amount of permutations.
2. Mobile phones can be set up to read the 2d matrix & data can upload/download to central data base on suitable encrypted basis.
What to know how quick/elegant this process is. The big deal here is enforcement people can quickly verify if ID card is valid & have sufficient independent data to work out person "offering" card is legit holder?
Lots going on in this space - same concept different application - more limited - see asx listed datadot - it puts micro material on objects - unreadable to human eye but can be read with scanner & use for asset protection/identification
Good question & answer from NBS is is likely to be if we told...
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