Mastercard files a patent for blockchain-based identity protection system

The website of the USPTO (United States Patent and Trademark Office) has seen a new filing sent by Mastercard. The invention is dedicated to identity theft protection which is obviously a serious issue in banking and corresponding financial operations.

The company notes that their system could potentially eliminate fraud schemes connected with false identities through the hierarchy of data files. Only Mastercard-verified nodes will be allowed to participate in the system and change the sensitive data. The cybersecurity benefits are obvious, especially considering the rise of hackers’ skills in the recent years. Note that the patent can actually be won by another organization later.

Cryptocurrency has nothing to do with this new technology this company is currently building. The executives of Mastercard have previously stressed that cryptocurrency is junk unless it’s issued by a government or a central bank. At the press time, there is no bank-issued digital currency yet, very likely due to the conclusions of the U.S. Federal Reserve’s research with which the major banks of the world are familiar.

Image courtesy of Alamy