Even though cryptocurrencies remain somewhat controversial, their underlying blockchain technology is very different. In fact, it has become apparent there are quite a few issues Mastercard can solve with this new technology.
Ending Fraud with Blockchain
Blockchain has been heralded as a major revolution for the financial sector. Mastercard holds out high hopes for this technology moving forward. With close to thirty blockchain patents in its portfolio, the card issuer can explore many different options. In this world of growing financial fraud, something has to change. Utilizing blockchain technology for this specific purpose can yield surprising results.
For now, there is still some uncertainty as to how Mastercard will incorporate the blockchain, although different business models can be explored in the coming years. For major credit card issues, dealing with payment fraud will be one of the top priorities. Merging that with distributed ledgers will be challenging, although one patent hints at an interesting concept.
More specifically, Mastercard holds a patent to put credit cards on a public blockchain. As such, the ledger will be used to validate and verify payments. Whether this will happen by encoding the information directly or using intermediary mediums remains unclear. The use of a publicly-accessible chain will especially raise a lot of questions in this regard.
The Road Ahead for Mastercard
While it remains unclear what the company plans to do exactly, external developers will play a big role. Mastercard set up a program to let developers build new blockchain applications. As such, the company can properly vet these ideas and see if they can be a viable addition to the company’s ecosystem. Job.com’s blockchain expert Arran Stewart claims:
Mastercard has recognized the value in the travel industry and are providing a platform that allows holidaymakers/travel seekers and others to tell the tourism world where they wish to go privately through blockchain encryption.
Many ideas exist, but not all of them will be feasible The blockchain will impact finance in different ways as more time progresses. Finding the correct use cases and building a robust infrastructure will take a lot of time. For Mastercard, that situation is no different. It is good to see such a prominent company explore many different applications, especially one that will benefit consumers in the long run.
Do you think blockchain technology can help fight credit card fraud? Let us know in the comments below.
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