Capital One, America’s banking giant, seems to be working on utilizing blockchain technology for which it files a patent. This is to initiate more fitting and safer user verification techniques in instances like banking safety.
Continuation Of Capital One 2017 Patent Application
According to a filing with the USPTO (U.S. Patent and Trademark Office), the patent application is in continuation of the one submitted in June 2017. The bank seeks the patent for a blockchain system that will receive, store, and retrieve enciphered user verification data.
The intended idea is to have “a distributed, non-reputable record of authentication interactions.” This will let the users verify themselves across numerous platforms. It would also prevent users or even establishments challenging validated records. They may not lay claim saying that the records are not true o accurate. In addition, the system will restrict how much personal information can be shared between them.
In effect, when a user starts the authentication process the method retrieves recognition data. The system will either validate or reject the customer depending on the received validation information. This will not affect the user data itself since it is safe on the blockchain.
According to the bank, the invention will potentially decrease “time and resource burdens” for institutions. This is especially when taking on new clientele. Moreover, the filing says that it would be a bonus for users as well. Users who hate to repeatedly validate themselves as they shift between different institutions. For that reason, Capital One further adds:
“Users may resent having to respond to repeated authentication requests as they navigate between computer systems associated with different institutions. Institutions and users may, therefore, benefit from a collaborative authentication system that handles authentication interactions for multiple institutions.”
Business Use Case KYC
One business-centered use case for the innovation is in satisfying “statutory or regulatory requirements, such as ‘Know Your Customer’ requirements.” The financial institutions all over the world have to legally abide by this regulation to decrease the possibility of money laundering.
In 2016, Capital One had entered into a partnership with LA-based blockchain company Gem. This was with the aim of solving the issues of health providers’ long wait to receive payments from insurance companies. Capital One alleged then that “blockchain technology connects the ecosystem to universal infrastructure, and shared infrastructure allows global standards that do not compromise privacy and security.”
Join our Telegram Group To Stay Up To Date With Crypto News