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MasterCard Wins Patent For A Blockchain-Based Coupon Authentication System

Stefan by Stefan
01/06/2018
in Blockchain News
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Big news comes from the offices of Mastercard. The financial services giant has recently won a patent for a system that uses blockchain technology in order to authenticate coupons. The patent is granted by the US Patent & Trademark Office (USPTO) on May 31st and outlines a whole new way for merchants to minimize coupon fraud and issue targeted discounts to specific customers.

How Will Blockchain Based Coupon Authentication System Work?

The system will work in a simple way. An individual will be assigned a blockchain address, whose credentials will be stored in a payment instrument such as a credit card or a digital wallet application. Every time the user attempts to redeem a certain coupon, the POS (point-of-sale) device will interface with the private blockchain network, verifying that there is authorization and that the customer can receive the discount.

The system will also automatically transfer the coupon out of the customer’s wallet and forward it into a “burn address” (an address associated with validated coupons) preventing the coupon from being used again.

Aside from tackling coupon fraud, this system according to Mastercard, will benefit consumers as well because it would eventually provide businesses with the ability to issue valuable coupons where discounts could not be counterfeited or redeemed by people who don’t have access to these.

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The CEO of Mastercard, Ajay Banga, recently said that the company will support government-created cryptocurrencies if they are developed in the future. However, he was confident that “non-government mandated currencies are junk”.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Tags: Blockchainblockchain based systemBlockchain Newsblockchain systemBlockchain Technologyblockchain technology applicationsblockchain technology in bankingblockchain updates
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Stefan

Stefan

Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.

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