It has emerged that payment giants MasterCard has filed a number of blockchain patent applications aimed at tracking consumer payments.
Information published by the US Patent and Trademark Office last week revealed a number of relatively similar blockchain patent applications that had been filed by MasterCard in which the company describes how distributed ledger technology is ideal for recording “point-to-point transactions” as they are processed.
Simplification of the process
The primary benefit of such technology, according to the blockchain patent applications that have been filed, is the ability to streamline account management by simplifying the process which registers and monitors purchase orders.
According to MasterCard, the process of monitoring purchases on multi-service platforms can also be simplified using blockchain technology, with the company claiming –
“The use of digital ledgers, such as blockchains, may further facilitate the services provided by such a platform, by enabling data to be stored clearly and in a format that is easily auditable by participating entities.”
“In cases where ledgers like blockchains are used, the ledgers may be provided even more benefits as they may be immutable and resistant to tampering, which may further increase the reliability of such data.”
As is the case with many companies who register interest in blockchain technology, the ability to provide immutable data records is a huge draw, and MasterCard’s blockchain patent applications only serve to highlight the benefits that the technology can offer.
The payments company continues –
“As a result, such a platform may provide a great number of services to entities while doing so in a manner that is more secure and transparent than any number of systems dedicated to even a single one of the multiple services.”
Disparity between processing times
When it comes to blockchain patent applications, this isn’t MasterCard’s first sign of interest, with the company already having secured several blockchain patents in the past, including a method for speeding up cryptocurrency payments.
The application, which was won in July of this year, claimed that despite cryptocurrencies having “seen increased usage over traditional fiat currencies by consumers who value anonymity and security,” there was a considerable disparity between processing times between both asset classes which put cryptocurrencies at a distinct disadvantage.
The MasterCard patent application claimed a need to improve on crypto processing times, explaining that “It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed.”
“Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured in nanoseconds.
“Therefore, many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions.”
The blockchain patent applications, coupled with the indication that MasterCard has been hiring blockchain specialists signals that they are very much looking to utilize blockchain technology moving forward.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.