MasterCard has announced its plans to utilize blockchain technology to prevent identity fraud, making their identity system more secure. The patent outlines how company is going to use semi-private or private blockchain to receive and store user’s data.
The patent was submitted in September 2017, but the payment giant announced the move just recently. MasterCard explains the reason behind its decision to embrace Blockchain:
“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.”
Each entity of the new ID system will have its own public key and a ‘geographic jurisdiction’. ‘Superior’ entities will be used to validate the data files by means of digital signature. Each entity will be assigned an ‘identity value’ by a hashing algorithm, which would result in the creation of a block with a timestamp. Only MasterCard-certified nodes would be able to edit the data.
The company writes:
“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.”
Moreover, MasterCard has recently hired 175 blockchain developers, which could mean that more blockchain projects are on the way.