Mastercard Awarded Patent for Partitioned, Multi-Currency Blockchain

Published at: Oct. 10, 2018

Mastercard has been awarded a patent for a method to partition a blockchain, making it capable of storing multiple transaction types and formats. The patent filing was published by the U.S. Patent and Trademark Office (USPTO) on Oct. 9.

The document explains that in current blockchain systems, the transaction records stored in the different blocks that comprise a blockchain are “often required to be of the same format and include the same types, and sometimes even sizes, of data.”

This means that any entity that wants to use multiple types of blockchains — whether ones that support different cryptocurrencies, or ones with varying degrees of permissioned or open access — is forced to operate many different blockchains at once.

Mastercard notes that this consumes “significant” resources and computing processing power, which is the impetus for finding an alternative solution.

The patent proposes that using a “partitioned blockchain” could resolve this problem, outlining the particulars of how block-generation and transaction data storage would work in the prospective system. It coins the term “subnet” for the proposed partitions, which would be internally consistent but would interact in a wider, single system.

The patent continues to outline that “a partitioned blockchain may include transaction records for three different subnets, where the transaction records associated with each respective subnet may be formatted differently and may involve the transfer of a different cryptographic currency as associated with each subnet.”

As previously reported, Mastercard has filed a high number of blockchain-related patents. This summer, the company proposed a new method for linking assets between blockchain-based and fiat currency accounts, based on using a public (permissionless) blockchain. In the spring, it filed a patent for a system to speed up the activation of new nodes in a blockchain, as well as for a blockchain system to combat identity theft.

Tags
Related Posts
Mastercard Hints at Future Crypto Wallet Product With New Job Listings
Mastercard appears to be angling to enter the crypto wallet space with new job ads for blockchain and cryptocurrency-related product development. According to updated job listings from the payments giant as of Aug. 2, the company is seeking to hire for the following roles: “Director, Product Management - Crypto Currency/ Wallets, Director, Product Development & Innovation - Blockchain Solutions Architect, and VP, Product Management - Blockchain/Crypto.” A bid for the crypto wallet space? Two of the new roles — the future director of product management for cryptocurrency/wallets and future VP of product management for blockchain/crypto — will lead a team …
Adoption / Aug. 5, 2019
Bank of America Wins Patent for Storing Clients’ Crypto Holdings in Enterprise Accounts
The Bank of America (BoA) has won a patent for a system for enterprises to store customers’ crypto deposits, published by the U.S. Patent and Trademark Office (USPTO) yesterday, Nov. 13. The patent, first filed in mid-June 2014, outlines the background to the invention by stating that “as technology advances, financial transactions involving cryptocurrency have become more common,” and noting: “For some enterprises, it may be desirable to aggregate cryptocurrency deposited by customers in an enterprise account.” The patent filing outlines different interactions between customers’ crypto holdings and an enterprise account, with the latter functioning to securely store (or “aggregate”) …
Adoption / Nov. 14, 2018
Mastercard Patent Claims Cryptocurrency Can Benefit From Fractional Reserve Banking
U.S. multinational financial services corporation Mastercard wants to apply principles of fractional reserve banking to cryptocurrency, a new patent application published Thursday, Oct. 25 reveals. According to the document, published by the U.S. Patent & Trademark Office (USPTO), the payment processor has plans to allow merchants to interact with what it calls “blockchain currencies” via a new method of simultaneous crypto and fiat storage. Specifically, reference is made to “methods for managing fractional reserves of blockchain currency.” Mastercard has offered a mixed public stance on cryptocurrency in recent years, this month winning a further blockchain-related patent, while signalling along with …
Blockchain / Oct. 26, 2018
Bakkt shares skyrocket after partnering with Mastercard and Fiserv
The share price of the Intercontinental Exchange-backed crypto services company Bakkt ($BKKT) has surged as it unveiled two partnerships with major global payments firms. On Monday 25 Oct., Mastercard announced it would be working with digital asset platform Bakkt to allow its customers based in the United States to buy, sell and hold digital assets through custodial wallets. On the same day, global payment provider Fiserv also announced a strategic collaboration with Bakkt to offer merchant-facing digital asset services. The news drove a bullish day of trading for BKKT, with the stock rallying by more than 50% outside of regular …
Adoption / Oct. 26, 2021
Mastercard launches new crypto fraud protection tool
The financial service provider Mastercard will launch a new crypto service related to risk management on Tuesday Oct. 3. Mastercard’s new service, Crypto Secure, is aimed to help banks find and prevent fraud on crypto merchant platforms. Crypto Secure combines the usage of artificial intelligence, blockchain data and public records of crypto transactions, along with other sources, to determine crime-related risks of crypto exchanges within the Mastercard network. Mastercard already has a similar service with fiat currency transactions available to banks. The president of cyber and intelligence business for Mastercard, Ajay Bhalla, said this development helps its partners stay compliant …
Adoption / Oct. 4, 2022