Mastercard Files Patent for Cryptocurrency-Friendly, Blockchain-Based Card Verification System

by 99Crypto

Global payments company, Mastercard is filing a patent to create blockchain systems that would provide faster transaction rates and more secure payments using credit or debit cards. This is according to a report by the USPTO released on June 7, 2018. The patent describes a conveyance and retrieval process involving a public blockchain for verifying personal information. That's why it was called the "Method and System for Payment Card Verification via Blockchain". In the patent filing, Mastercard has pointed out the lack of protection in wireless transactions using payment credentials. They claim that these transmissions can be vulnerable to hackers and identity thieves. Mastercard also aims to minimize the amount of consumer participation in storing data on the payments. And implementing a blockchain system seems like the easiest way to do it. They are still trying to fix the technical issues in order to build a more convenient and well-protected blockchain service. There is a need for the transfer of payments to be faster since cryptocurrency transactions could take days to process. Another problem they have to deal with is known as "Skimming", which enables hackers to hijack the payment credentials of a merchant or customer from the blockchain network, regardless of where it is actually located. While wireless transmissions are more risky, credit cards and printed out wallet codes are not completely safe either. In the document, MasterCard explained the encryption process by which user data is stored on the blockchain. It automatically issues two keys, one public and the other for private use. When someone makes a purchase with their card, it sends out a request to the blockchain system. The keys allow it to decode and confirm that the card information is correct. Last week, Ann Cairns, Vice Chair of Mastercard, stated that the company has successfully built a blockchain to regulate the whole network. At the Money20/20 conference, she gave a speech on scaling blockchain integration into a real case study. It's not about substituting existing technology with blockchain, but rather how to improve user experience overall for crypto users.