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Mastercard Wins Patent for Anonymous Blockchain Transactions

Mastercard wins patent for anonymous blockchain transactions

Mastercard Wins Patent for Anonymous Blockchain Transactions


Mastercard
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Financial services giant Mastercard was awarded several new blockchain patents this week, continuing its trend of embracing distributing ledger research even as it expresses open hostility to bitcoin and other cryptocurrencies. However, one particular patent is raising eyebrows.

The patent, awarded by the U.S. Patent and Trademark Office (USPTO) on Thursday, outlines a system that facilitates anonymous transactions over a blockchain network. Mastercard first applied for the patent in Dec. 2016.

According to Mastercard, the transparent nature of ordinary blockchain transactions is a hindrance to this technology’s adoption for everyday payments. That’s true for both businesses and consumers.

An individual, for instance, may want to purchase a gift for a significant other without the recipient being tipped off to the details of the transaction. Moreover, most businesses would not be too keen on providing competitors and other third-parties with real-time data such as transaction volume.

From the patent:

“Thus, 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.”

Zcash
Zcash includes features that enhance the privacy of cryptocurrency transactions, but mastercard wants to facilitate anonymous transactions through a third-party processor.

An entire class of cryptocurrencies have made anonymous transactions their primary focus, with the most prominent “privacy coins” including monero and zcash. bitcoin’s Lightning Network (LN) also promises to enhance privacy once it is more widely adopted.

However, Mastercard aims to accomplish this without the use of a public cryptocurrency, and perhaps in a way that would still provide law enforcement with the ability to trace illicit transactions — though this factor was not specifically addressed in the patent.

Moreover, while cryptocurrencies facilitate peer-to-peer transactions, Mastercard’s proposed system still relies on a third-party processing server, which, in this instance, maintains a database of unique entity profiles. Along with identifying information, each entity profile includes a string of secret data.

After receiving transaction details from a business, the processing server creates two hash values. The server first hashes the transaction details, then it creates a second hash value by combining the first hash with the secret value from the entity profile. The hash value can then be published to a blockchain or other type of distributed ledger to prove the integrity of transactions without revealing their specific details.

As CCN reported, Mastercard has won a variety of blockchain patents in recent weeks. One, awarded in May, uses a blockchain to manage coupon authentication and cut down on coupon fraud. Another, granted this month, aims to lower prices and increase the efficiency of travel itinerary bidding.

Featured Images from Shutterstock

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Published at Thu, 28 Jun 2018 14:44:54 +0000

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T.Mickauskas: Bitcoinus Will Rule the Blockchain Payments in 2 Years

Global e-commerce revenues rise at around 20% annually and the pace should continue this way for at least several years to come. This year the numbers should exceed $3 trillion level when we combine all worldwide sales expectations.

Now if we look at currently absolutely astonishing increase in capitalization of cryptocurrencies, there are a few assumptions to be made. Since 2017, bitcoin alone rose over 1400% in value it gets very tempting and obvious that more and more retail consumers going to switch to cryptocurrencies. Most of them will maintain the focus on the growth of their capital. However, a very common practice is to spend a little bit of gain on small retail purchases and the trend has only started to appear.

E-commerce continues to skyrocket

 

Online purchases in most cases compile to around 10% of all global retail sales. The number is also growing every year and the future is clear – the e-commerce will eventually dominate the market. While according to Statista, over 19% of all sales were online based in China it only adds up to around 6,7% in Japan. The numbers are projected to increase at least 15% every year.

Switching back to cryptocurrencies, it is important to note that only a tiny fraction of e-commerce companies offer payments in bitcoin, Ethereum or any other altcoin. The overall industry of online crypto payments is far away from exceeding 1% of all transactions.

Bitcoinus is an online crypto processing company targeting this – once in a lifetime – market opportunity to expand at an incredible pace.

“Media attention to blockchain based products and specifically cryptocurrencies like bitcoin is overwhelming. The reality, on the other hand, is that the real revolution and the switch to this form of financial freedom is yet to happen. We started Bitcoinus to help people and businesses to maximize their gains by utilizing blockchain technology. It is now or never and between the two, we chose NOW.” – Says Tomas Mickauskas, the founder of Bitcoinus.

Crypto Payments in Every E-Shop

The main idea beyond Bitcoinus is to make all types of cryptocurrencies available to retail customers wishing to buy any item online with their bank cards. Beyond the complex process of transaction lies the simplicity of two click payment.  An individual will no longer need to go through a long and exhausting process of buying cryptos, storing them safely and then sometimes losing in cases of unfortunate events or scams.

Bitcoinus will introduce the merchant reputation system where all of the online businesses will be rated according to their performance levels and transparency. Ensuring commercial trust between the two parties is the key when we speak about the immediate adoption of the technology.

Another reason why Bitcoinus will make its way to dominating the industry is its relatively low cost to any of the existing competitors. 0.5% transaction cost is what the standard package of Bicoinus payment processing will be. In comparison to any credit card processing gateway companies, the commission sometimes only adds to as little as 10% of the regular pricing. Getting 90% discount for the service clearly brings strong opportunities for cost optimization and lower prices to the end retail clients.

Financial ICOs Bring Overwhelming Returns

2017 was a year of many successful ICOs and impressive capital gains. The infrastructure of blockchain based technology for retail user is only on its way and many of the ICOs were suggesting their outlook on many industries.

When it comes to financing, there was no shortage of great success stories, some of which are worth mentioning to make a point of where the market is headed. Tezos ICO attracted over $232 million and the return on their token has already brought over 1100% rate to the contributors. The example is impressive and shows how much the community is into new promising blockchain projects.

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Bitcoinus ICO 

The ICO of Bitcoinus will commence on 22nd of January. All contributors will be able to get generous 47% discount on BIU tokens. Some of the best examples of future benefits are free transactions to B2B clients who will be interested in adopting the cryptocurrencies as their additional new payment method.

All individuals who will support the Bitcoinus project will also be able to get a variety of discounts while shopping at Bitcoinus retail partners’ online platforms and e-shops. BIU tokens will be traded in all major exchanges to provide the liquidity, therefore, it will create all conditions for the token to be accepted as a payment method to all Bitcoinus partners.

Bitcoinus ICO presale will offer 8M tokens 47% off the regular price, starts on 22nd of January.

Websitewww.bitcoinus.io

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