MasterCard plans to use Blockchain to manage identity data, as the company states that the technology could be useful to limit the use of fake identity data within its systems.
16 April, AtoZ Markets – Mastercard has recently published a patent filing, suggesting that the company is considering Blockchain as a way to protect identity data.
MasterCard Plans to Use Blockchain to Manage Identity Data
In the application issued by the US Patent and Trademark Office (USPTO), Mastercard has described a system, in which a semi-private or private Blockchain would be utilized to receive and store identity data. Some of the identity data details may include "name, a street address, tax identification number" and the like.
The company states that the technology could be useful to limit the use of fake identity data within its systems. Mastercard writes in the patent filing:
"The use of a blockchain for the storage of identity and credential data may provide for an immutable storage of such data that can provide an accurate verification thereof and also prevent the fabrication of such data."
The document also elaborates that the system would produce a “data file” for each entity. This file would be associated with a public key and a “geographic jurisdiction.” The entities would be “subordinate”, with a “superior” entity imposing a digital signature on their data files. Mastercard also explains that a "hashing module of the processing server" would produce an “identity value” for each of the entities. It would also create a block with a timestamp and a special record of the latest added block to the Blockchain.
Mastercard Blockchain Ideas
This network would be different from a public Blockchain. Mastercard’s network would only allow certain nodes to submit data. The authorized nodes would act to "prevent the addition of data that may compromise the accuracy of the data stored therein."
Speaking differently, Mastercard-approved nodes are the only ones that can update the identity information within the network. As per the company, the proposed system has the potential to replace other means of proving identity that might be exposed to fabrication. The company states:
"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."
Mastercard has submitted few Blockchain-related patent applications, as of today. One of the filings has suggested the infrastructure that could ease the refund services for cryptocurrency users. Another document from Mastercard has proposed a Blockchain-based database that could process payments instantaneously.
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