As per the US Patent and Trademark Office (USPTO) patent filing released
June 7, a patent for a ‘Blockchain System’ to deliver faster and more secure
payments on their cards have been filed by the financial services provider-
Mastercard.
A blockchain continuously adds records, called blocks, and links and secures them using cryptography. It functions as a digital ledger that records transactions made in various currencies or cryptocurrencies in a chronological and public manner.
Earlier this week at the Money20/20 conference, Mastercard’s vice chair Ann
Cairns said that the company has “built a Blockchain that can run the whole
network.” She also said that the company decided to put blockchain integration
to use “at scale” while realizing the need to spot “real use cases.”
Cairns made it clear that firms cannot just “replace existing technology with
blockchain because they may not create a better user experience.”
Blockchain to Enhance Card Verification and Data Security
The patent application titled “Method and System for Payment Card Verification
via Blockchain” explains a public blockchain-assisted transference and recovery of
payment processes to verify and secure users’ information.
By putting a blockchain into operation, the company intends to enable a secure
the way of passing on payment credentials that also involves “minimal participation
by the consumer.”
In the document, Mastercard noted the vulnerabilities of current methods for the wireless transmission of payment credentials. Specifically, it asserted that these systems can be “subject to intercept.” As a result, the company highlighted the need for more secure alternatives to safeguard sensitive financial information.
The recent blockchain application from Mastercard plans to solve the technical
problems of offering both security and convenience to its users.
As per the patent document, two keys namely public key and private key are
issued after the encryption process encodes the card information and stores it on
the blockchain. When the Mastercard is applied to make a purchase, the system
uses the keys to decode and verify the card information only after a retrieval
request is made