Mastercard Eyes Blockchain for Fighting Fake Identities
New patent filings from Mastercard explore a blockchain-based identity data storage system.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/3UTBLGFDXJBK3AFH2BFSWPODZQ.png)
A newly published patent filing from Mastercard suggests that the payments giant is looking at blockchain as a way to safeguard identity data.
In an application released by the U.S. Patent and Trademark Office (USPTO) last Thursday, Mastercard describes a system in which a semi-private or private blockchain would be used to receive and store identity data, the pieces of which could include a "name, a street address, tax identification number" and more.
The company states in the filing, which was originally submitted in September 2017, that the tech could help it block the use of fake identity data within its systems.
Mastercard writes:
The filing explains that the system would generate a "data file" for each entity, which would be associated with a public key and a "geographic jurisdiction." These entities would be "subordinate," while a "superior" entity would impose a digital signature on their data files. A "hashing module of the processing server" would subsequently generate an "identity value" for each entity and create a block with a timestamp and a record of the most recent block added to the blockchain.
Unlike a public blockchain, Mastercard's proposed network would only allow certain nodes to submit data. These authorized nodes would act to "prevent the addition of data that may compromise the accuracy of the data stored therein," per to the application.
Put more simply, the Mastercard-approved nodes are the only ones that can update the identity information within the system. And according to Mastercard, the proposed system could possibly replace other means of proving identity that may be susceptible to fabrication and inaccuracies.
As the company notes:
Mastercard has submitted several blockchain-related patent applications to date. One filing envisioned an infrastructure that could facilitate refund services for cryptocurrency users. Another filing described a blockchain-based database that could instantaneously process payments, thus significantly reducing transaction settlement times.
In addition to the intellectual property plays, Mastercard is moving to beef up its internal blockchain talent as well.
The payments tech company announced last week that it was hiring 175 new technology developers, including blockchain specialists, to work out of an office in Ireland.
Image Credit: Alexander Yakimov / Shutterstock.com
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.