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Through Pain Comes Clarity
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To hit targets so far away the bullet uses an optical sensor, an “eye” that detects the little red dot of a laser beam pointed at a target. Tiny electromagnets steer a set of fins on the bullet to keep it on track. Unlike ordinary bullets, this one has a its center of gravity pitched forward, more like a dart than a bullet.
http://www.foxnews.com/scitech/2012/02/01/smart-bullet-may-have-your-name-on-it/?intcmp=features