Mastercard Eyes Blockchain for Fighting Fraudulent Identities
April 16, 2018 11:05 am
Mastercard to use Blockchain to identify Fake Identities
In an application issued by the US Patent and Trademark Office (USPTO) last Thursday, MasterCard illustrates a system in which a semi-private or private blockchain would be utilized to obtain and store identity data, the parts of which could incorporate a “name, a street address, tax identification number” and more.
The organization states in the filing, which was initially submitted in September 2017, that the tech could help it block the use of fake identity data within its systems.
The filing clarifies that the system would create a “data file” for every identity which could be linked with a public key and a “geographic jurisdiction.” These entities would be “subordinate,”
While a “superior” entity would force a digital signature on their data file A “hashing module of the processing server” would afterwards make an “identity value” for every entity and generate a block with a timestamp and record of the latest block added to the blockchain.
“The use of a blockchain for the storage of identity and credential data may provide for immutable storage of such data that can provide an accurate verification thereof and also prevent the fabrication of such data.”
As per the application, unlike a public blockchain, Mastercard’s suggested network would allow certain nodes to submit data. These approved nodes would act to “prevent the addition of data that may compromise the accuracy of the data stored therein.”
Put more plainly; the Mastercard-approved nodes are the only ones that can update the identity data in the system. Moreover, according to Mastercard, the recommended system could likely replace other means of verifying the identity that may be susceptible to fabrication and errors.
Mastercard has submitted numerous blockchain-related patent application to date. One filing envisioned an infrastructure that could facilitate refund services for digital currencies users. Another filing portrayed a blockchain-based database that could immediately process payments, hence significantly lowering transaction settlement times.
As the company writes:
“In such instances, it may be difficult for an entity to disprove a false identity, leading to an interaction with an inauthentic individual or entity. Thus, there is a need for a technical solution to provide for the immutable storage of identity and credential data that may prevent fabrication and inaccuracies.”
In addition to the intelligent property plays, Mastercard is moving to strengthen its internal blockchain talent as well.
The payment tech company declared a week ago that it was hiring 175 new technology developers, including blockchain specialists, to work out of an office in Ireland.