Mastercard to Patent Crypto Payments Speed Up Solution

World payment giant made another step on the field of cryptocurrencies
18 July 2018   1271

Mastercard won a patent for the technology to accelerate the cryptocurrency transactions,  CoinDesk reprots.

According to a document published by the US Patent and Trademark Office, Mastercard recognizes that "consumers who value anonymity and security increasingly prefer crypto currencies to fiat currencies," but the processing speed of crypto-currency transactions is an obvious "drawback" of this method of payment.

There is a need to improve on the storage and processing of transactions that utilize blockchain currencies. 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.
 

Mastercard Patent

To reduce the processing time for transactions, the company proposes to introduce a new type of user accounts, which will be able to carry out cryptocurrency transactions tied to the fiatic currencies. This account will be used to link several profiles that will allow user to set "the amount of currency, the amount of blockchain currency, account ID and address".

Such transactions will be carried out using the means of payment of the financial currencies and transfer the crypto currency. Mastercard notes that when transferring cryptocurrencies in such way, "payment networks may be able to evaluate the likelihood of fraud and assess risk for blockchain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and blockchain transaction data, credit bureau data, demographic information, etc., that is unavailable for use in blockchain networks"

Mastercard hard already made steps on the field of cryptocurrency. Last year, in a patent application, the company described the technology of refunds when working with crypto-currencies.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   1026

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.