Mastercard Submit Application to Patent System for Anonymous Blockchain Transactions
July 3, 2018
On June 28 the US Patent and Trademark Office published an application by the global payments company Mastercard to patent a method and system to make transactions on blockchain anonymous.
Mastercard says that this system may prove useful for companies, that need to hide any traces of their cooperation with certain partners. Currently, in order to do this companies ask third parties, but this is very risky.
According to the application, the development will be based on a processing server with a user database. All data will be concealed by using a multilevel encryption method, that works as follows:
- after processing the data of the first party of a transaction, confidential data of this party is put into hash;
- confidential data of the second party is put into second hash, that is based on the first hash;
- both hash values are combined and transferred on blockchain.
Information about involved parties will remain anonymous, although some details will be available for public. Mastercard describes the method in the application as a "convenient and efficient system that may retain a higher level of privacy, confidentiality, security, and/or accountability than various existing systems."
It is worthy to note, that although the system is based on blockchain technology, no cryptocurrencies are involved and only fiat currencies can be used for transactions,