The goal of this research is to understand the fundamental issues related to the atomic lattice registry related interlayer tunneling in multiwalled carbon nanotube and to explore the development of novel devices based on this basic understanding. The research will exploit concurrently the unique structural, mechanical and electronic properties of carbon nanotube and engineer them for the application of carbon nanotube in a new field: nanometrology. The research will ultimately lead to the development of a brand new type of nanometrology device, namely an absolute displacement encoder with sub-nanometer resolution, which has rarely been explored, but could find wide application in precision engineering and nanoscale fabrication. The proposed research integrates nanomaterials, nanofabrication and precision engineering, and requires broad knowledge in electronics, mechanics, physics and engineering. The program is thus multi-faceted from an education point of view, and provides a perfect learning and training opportunity for the active participation and effective education of students.