Mastercard Applies Blockchain Patent Aimed at Ensuring Identity Privacy

Dec 11, 2018 at 20:00

MasterCard has submitted to the United States Patent and Trademark Office an application for a blockchain-powered product that ensures privacy in the system.

In a Dec. 6-dated document posted by the agency on its website, the leading global payments and technology firm said that with its product, cryptocurrency transactions can remain private, as the system that uses an intermediary that does not reveal a transaction’s point of origin and the amount sent, similar to Monero’s.

The patent claims it’ll be able to achieve anonymity by using an intermediary, meaning transactions wouldn’t be direct, but would be first sent to a user who then sends them to their final destination.

“A method for anonymization of a blockchain transaction includes: storing a key pair comprising a private key and public key; receive an anonymization request from a computing device, the request including a destination address and transaction amount; transmitting an intermediate address based on the public key to the computing device; receiving one block in a blockchain, the one block being comprised of a block header and one or more transaction data values including a specific transaction data value comprised of the intermediate address and a transfer amount based on the transaction amount; generating a digital signature using the private key; and transmitting a new transaction data value and the digital signature to a node associated with the blockchain, the new transaction data value being comprised of the destination address and a payment amount related to the transaction amount,” the report read.

At present, sources of the blockchains transactions, particularly those with systems that use an immutable ledger, are traceable, as such, jeopardizing the privacy of those involved in the transaction.

However, MasterCard pointed out the possibility of gathering and analyzing data, which can then reveal who the user of a wallet is, at list bits of details of the identity of the sender.

As such, “a technical solution” that anonymizes the sender’s identity will be help resolve the current system.