Marc Serafino
Mastercard is not “immune” to blockchain; it too is looking to join the revolution as indicated by its recent patent filed with the U.S. Patent and Trademark Office (USPTO).
The patent application describes a blockchain-based solution for a “uniform settlement system,” which would help ease some of the friction involved with business-to-business payments, such as growing data storage demands and the overall volume of transactions.
The filing titled “Method and system for recording point to point transaction processing” talks about the solution that includes: receiving a first data message related to a payment transaction, storing, the first, second and third data element with a link to a record affiliated with the first data message; generating, a second data message related to the payment transaction; storing, the first data element with a link to a record affiliated with the second data message; generating a third data message related to the payment transaction, storing the first data element, and the second data element with a link to a record affiliated with the third data message, and transmitting the first data message, the second data message, the third data message for display on a graphical user interface (GUI).
The application goes on to mention blockchain:
In some embodiments, the ledger may be a blockchain configured to store the associated data. A blockchain may be comprised of a plurality of blocks, wherein each block is comprised of at least a block header and one or more data values. Each block header may include a timestamp as well as a reference value referring to the block header of the previous block added to the blockchain and a reference value referring to the one or more data values included in the respective block.
Not the first Mastercard blockchain patent…
Previously, the global credit card issuer has filed a patent titled “Information Transaction Infrastructure” detailing an infrastructure that would enable users to verify their identities, which would then be linked to cryptocurrency addresses they elect to disclose. Such technology could be used for situations in which users are submitting payments to merchants from accounts on exchanges or other services in which their funds may be held alongside those belonging to others.
Then, in the event that a merchant has to send the money back for a refund, they would send it back to an address linked to that user’s account. User on its end would have two wallets, one of which would be public to allow for refunds.
Even before that, Mastercard has filed four blockchain–related patents with the USPTO. Published in November 2016, these filings describe methods and systems for authorizing, processing and securing blockchain-based transactions, with the company arguing that its existing payment technology could be combined with blockchain to make digital payments that much better.
Blockchain APIs
In addition to trying to secure IP for decentralized digital payments, Mastercard has also released a set of blockchain APIs in October 2016. The company’s innovation unit, Mastercard Labs, is offering APIs that connect to its internal blockchain work, including services dealing with smart contracts and payment settlement.
“This is part of our initiative to publish experimental APIs from Mastercard Labs and give developers the chance to work on emerging technologies that haven’t yet been commercialized by us,” MasterCard blockchain lead Justin Pinkham told CoinDesk at the time when these APIs were released. “We believe that there is a role of blockchain in the future of commerce. This future needs to be developed in partnership with banks, merchants and industry participants.”
He went on to add that Mastercard is creating the foundation for blockchain tech that could focus on use cases, including inter-bank payments and trade finance.
Blockchain focused patents on the rise
Mastercard is by no means the only financial services company looking to benefit from blockchain, with both well established players and startups filing for related patents with the USPTO. (related: Nasdaq Blockchain Plans Include Creating Data Matching System)
In fact, the number of cryptocurrency- and blockchain-related patent applications being submitted and published in the US nearly doubled in 2017, compared to the year before. During the first half of 2017, there were 390 patent applications broadly related to blockchain technology at USPTO’s website, up from 204 that were filed during the same period a year before. Compare that to just 71 patents that were filed in 2012 and you get the idea where the market is going.
And by now you also know how we feel about the whole “crypto market” — we love it. And we walk the talk. How about you?
