The financial services giant Mastercard seems to be on a roll when it comes to adopting blockchain technologies, while still openly opposing various cryptocurrencies and privacy coins.
In simple terms, the patent describes a system that facilitates anonymous transactions through a blockchain network.
From the patent: “[…] there is a need for a technical solution whereby an entity may participate in a transaction where transaction details may be posted publicly to ensure accountability and trust in the data, while still providing anonymity and inability of others to track individual transactions or volume information by transaction party identifying information of both parties of a transaction to satisfy the confidentiality needs of each entity involved in the transaction.”
The patent is focused on security, meaning that with its help, Mastercard aims to implement an anonymous transaction system. However, Mastercard’s approach is not a typical one. The financial service giant aims to achieve a high-level of security without actually using a public cryptocurrency.
The third-party server
To be more precise, cryptocurrencies facilitate peer-to-peer transactions, while Mastercard’s system is heavily reliant on a third-party processing server. The server is responsible for maintaining a database of unique entry profiles that contain strings of secret data.
Two hash values are being created by the server once it receives the transaction details of a business. The details of the transaction are used to create the first hash, while the second one is created by combining the first one with the secret string value mentioned above. Ultimately, the hash value is used to verify the integrity of the transactions by being published on the blockchain or any other distributed ledger.
This news comes right after Mastercard has won various other patents in the last few weeks. In May, Mastercard was awarded a patent that uses a blockchain to securely manage coupon authentication and reduce coupon fraud. The other, just a few weeks old, is all about lowering prices of travel itinerary bidding.