According to the latest announcements, Mastercard, the financial payments services giant has been granted several new patent approvals this week regarding the implementation of several blockchain technologies into their existing network. Among others, the one that catches the eye especially is the one titled “Method and System for Anonymous Directed Blockchain Transaction”
What is the patent about
The patent relates to the posting of an anonymous directed transaction to a publicly accessible data source, such as a blockchain, where neither party to a transaction may be identifiable to all outside parties, and where a party is not identifiable across multiple transactions.
According to Mastercard’s filing, In the current scenario, Individuals and businesses often conduct payment transactions on a daily basis which may involve amount from hundreds, thousands, or even millions in transactions each day. In some cases, an entity may have a desire to participate anonymously in one or more of their transactions, such as if they do not want a third party to be aware of their transaction. However, existing methods for enabling an entity to participate in a transaction anonymous requires a third party to participate in the transaction on behalf of the entity as a stand-in.
Under such methods the individual or company doing the transaction, not only makes the third party aware of their identity but is also required to reveal the nature of their purchase to the third party, as well as requires a significant amount of trust in the third party to not reveal their identity and to make the purchase and forward the good or service successfully.
MasterCard plans to use this technology without the use of crypto privacy coins (Monero or Zcash). Their proposed system relies on a third-party processing server which would maintain a database of unique entity profiles. Each profile would include a string of secret data along with identifying information.
After receiving transaction details, the processing server would create two hash values. The first hash value would include transaction details. The second hash value would combine the first hash with the secret value from the entity profile.
MasterCard Blockchain Endeavours
Mastercard has a history of mixed feelings about digital currency. In March, it noted that it was seeking to be a future player in cryptocurrencies issued by governments but stated that cryptocurrencies not backed by a state are ‘junk.
It was also reported by media, Mastercard has been seeking to develop blockchain based interbank payment systems since at least 2017. According to sources close to the company, it has been recruiting for a department dedicated specifically to blockchain technology.
Will Mastercard add its own privacy coin in the future or will it partner to likes of Monero or Zcash? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.