Mastercard to Use Blockchain For Anonymous Transactions

Payment service giant moves forward to distributed ledger technology with new patent won
29 June 2018   594

The giant of financial services Mastercard has patented the system for anonymous transactions in the blockchain. This is reported at USPTO website.

As described on the website of the US Patent and Trademark Office (USPTO), the transparent nature of ordinary blockchain transactions is an obstacle for the introduction of this technology into everyday payments. This applies to both business and individual consumers.

For example, someone can make a gift to an important person without notifying her or he about the details of the transaction. In addition, most companies are not too interested in that competitors or other third parties obtain real-time data such as, for example, the volume of transactions.

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.
 

Mastercard Patent Filing

Note that a number of crypto-currencies focuses on anonymity of transactions, for example, Monero and Zcash. Also Lightning Network promises to increase the confidentiality of the Bitcoin network .

Mastercard seeks to achieve the same without launching a cryptocurrency, and the company's new patent, although not directly mentioned, may potentially enable law enforcement agencies to track illegal transactions.

While the cryptocurrency is using p2p transactions, the Mastercard system still relies on a third-party server that maintains a users profiles database. Together with the identification data, each profile contains a string of secret data.

After receiving information about the transaction from the company, the server hashes the transaction information, and then combines them with a secret value from the profile. After that, the hash can be published in the blockchain to prove the integrity of the transactions without revealing their its specific details.

Bitfinex to List BCH' Chain Split Tokens

Bitfinex warned that support for BAB and BSV could be temporary
14 November 2018   56

The Hong Kong cryptocurrency exchange Bitfinex has listed the so-called Chain Split tokens for the two implementations of the Bitcoin Cash protocol. Bitcoin Cash hardfork is planned on 15th of November.

BAB [Bitcoin ABC client] and BSV [Bitcoin SV client] tokens will be traded in pairs with Bitcoin and the US dollar. The Token Manager tool will allow users to convert their Bitcoin Cash into one of the tokens. This process is reversible, Bitfinex emphasized. At the same time, marginal trade in tokens will be unavailable.

After snapshot of the network, the corresponding coins will be automatically converted into BAB and BSV onchain tokens, and all current Bitcoin Cash holders will receive an equivalent number of coins. However, if the user has a short BCH position at the time of the snapshot, the margin will be canceled, and the borrower, if he does not have enough tokens, will have to cover the negative balance sheets until December 31.

Bitfinex also warned that support for BAB and BSV could be temporary, and that as soon as all negative balances were covered, the exchange could delist them, allowing limited time for withdrawal.