Credit Card Companies Race Toward Crypto Tech to Boost Profits

Mastercard is looking to fast track blockchain, the technology behind cryptocurrencies such as Bitcoin.

The patents are important because they provide a clue as to how the credit card industry is working furiously behind the scenes to get ahead of the curve on blockchain.

Using the technology may or may not usher in the broad use of cryptocurrency over, say, U.S. dollars.

But it does have the potential to greatly lower the cost of doing business for the finance industry. And that means more profits for the credit card issuers.

A Mastercard patent application disclosed by the U.S. Patent and Trademark Office outlines the means by which a computer node can connect with and authenticate elements of a particular blockchain.

As per Mastercard’s spokesperson, the concept is to increase the speed at which nodes, which store a copy of that network’s contract history, get updated.

Mastercard first made the patent application in October 2016.

And as the application details, “a blockchain may store thousands, millions, or even billions of transaction records over time in a vast number of different blocks.”

Sounds good, but the numbers are, in fact, the problem.

When new blockchain node activation happens, it is mandatory that the next step is to individually verify a massive amount of data in order to activate.

The patent expresses that new nodes must validate “thousands, millions, or even billions of transaction records […] in a vast number of different blocks” that may have amassed over time in a specific blockchain.

The patent thus stipulates a technical solution for more rapid navigation in which “fast track flags” would be included in block headers so that new nodes may scan and validate the blockchain at a quicker speed.

The patent application states “a node in the blockchain network […] may quickly navigate the blockchain by identifying blocks that have activated fast track flags.”

“For verification, the node may identify the earlier fast track block (e.g., based on timestamp) and hash that block […] and then verify that the fast track reference in the more recent fast track block is the same as the hash of the earlier fast track block.”

The patent also presents a framework of the use of software specifically configured to perform querying, hashing, and signatory operations. This would most boost system efficiency.

Blockchain future

MasterCard Labs has reportedly filed for more than 30 “patents related to blockchain tech and cryptocurrency.”

On April 12, USPTO published a MasterCard patent application for tamper proof distributed storage of identity data on a blockchain system that would prevent abuses, such as identity fraud.

In Oct. 2017, the company launched a blockchain system offering business-to-business payments, and submitted a blockchain tech patent for instant payments a month later, in Nov. 2017.

The filing also discusses using a specially configured blockchain. This which would act as the software counterpart to the nodes and help enable further efficiencies.

Recommended Articles

Make Your Kid a Millionaire With This Simple IRS Program

Individual retirement accounts (IRAs) are an excellent investment option for people who are looking to save up for retirement. Contrary to what some people think, IRAs are not just meant

Legal Cannabis Now Powerful Enough to Replace Dangerous, Addictive Painkillers

Opioid abuse and addiction is a huge issue in the United States. In addition to this, long term use of these pain killers can lead to various health problems. These are

4 Great Places to Retire Near Water

The hard reality of retirement is that most people don’t plan for it until it is too late to be implemented feasibly. Or they don’t exactingly calculate how long their

Warren Buffett Learned Everything He Knows from This One Book

Value investing is the name of a particular investment philosophy that stresses a long-term approach to investing. Rather than follow short-term trends in the market, value investing relies on thorough

Exposed: Pharmaceutical Companies Spend Over 18 Billion Annually on Gifts to Doctors

I worked in a busy family physician's office about 18 years or so ago and was astounded by how many drug reps came in and out of the office loaded

6 Secrets to Getting Hired After Age 55

Finding a new job after a certain age, especially when you are in your late 50s, can prove to be quite challenging. Older workers have a lower unemployment rate than

Before You Sign, Read the Pros and Cons of Timeshares

Timeshares are upscale vacation and recreational properties that are simultaneously owned by multiple investors. However, there is a catch. Each owner is contractually obligated to only visit and inhabit the

6 Fast-Food Facts That Will Make You Put Down That Burger

Americans are more overweight than ever before. Sedentary lifestyles and poor diet is to blame. The convenience of fast food is also a factor. Morbid obesity increases the potential for

7 Common Impulse Purchases People Regret the Most

The bane of consumerism is that people voluntarily buy things that they don’t need or want for its own sake. By some estimates nearly 80% of American consumers buy some

10 Detoxifying, Filling Foods to Help You Slim Down Without Deprivation

Fad diets are a trend that may never die, as much as most of us want them to. It’s high time we took the focus off skinny and turned to

6 Ways to Get Perfectly Legit Free Government Cash

No such thing as a free lunch. Well, as a rule, yes. But we also know that for every rule, there are exceptions. While on one hand, we must beware

A Healthier You In Just a Month With These 12 New Habits

This is a simple guide to creating a healthier you in just one month! Some of these may be difficult, but the end results of feeling great are well worth