The curious part is that Mastercard never mentioned the term blockchain.
In around 2014, some financial companies jumped on to possibly the next big thing, which is the blockchain technology. Most of the fintech companies love the idea of avoiding SEC scrutiny and hasten the transaction time. At the moment, it seems that efforts of such companies are starting to pay-off.
For example, Mastercard recently filed a patent for its own blockchain-based system specifically for instant payment via recorded guarantees. It’s essentially a system similar to blockchain that offers instant payments to consumers. It’s not exactly a blockchain clone, but still uses a blockchain type of ledger system. The ledger system is available to the store and can be used to managed local and international transactions instantly.
Here’s how Mastercard describes the patent
A specific method for processing an electronic transaction, which includes:
- storing of account profile
- account number and corresponding balance
- transaction messages from a financial instituting using payment network
- deduction with regards to transaction amount
- generating a reply message
- transmission of generated record towards a computing system using a communication network
- transmission of generated message
The curious part is that Mastercard never mentioned the term blockchain. However, if you really inspect how the system works, it’s almost a clone of how a blockchain system works. Things can get really confusing, but there are clear tell-tale signs of blockchain technology.
Mastercard’s system describes using a public key, destination address, and a third data element. Furthermore, there’s a mention of a network identifier.
It seems that Mastercard is trying to very hard to describe a “new” system that they came up with, but it’s not blockchain. However, at its core, the system is designed to record transactions in immutable form. Well, that’s exactly what blockchain technology does.
Mastercard is also in a tricky situation. Here’s the thing, Mastercard already explored the idea of blockchain technology way before the current CEO hopped on board. However, Mastercard’s current CEO is a big opponent of Bitcoin, and even publicly attacked the cryptocurrency multiple times.
From the looks of it, it seems that Mastercard still doesn’t want to say that they made a mistake about the Bitcoin. Instead, they are still standing behind the current CEO’s and made something that’s a new method and system; but it’s not based on the blockchain. However, at its core, it works just like blockchain technology.