The rate at which countries around the world have been exploring the potentials of the blockchain system has continued to sky-rocket most especially in the banking sector. The news of Capital one applying for a patent to potentially invent a blockchain system which will authenticate new users in a secured manner.
Capital One Holding Company is a giant American bank that has a reputation in Credit card operations and bank loans as security in this aspect of the banking sector is not trivialized. Based on a publication this week, Capital One has applied for a patent entitled “Blockchain system and methods of user authentication.” The patent was filed in Virginia, the USA, with the name of the inventors of the authentication technology to be: Johnathan Weimer and Ryan Fox.
The project’s abstract further describes the patent’s details which reveal that the computer-mediated method and systems are to include verification messages including that the root system successfully authenticates the user and including an authorized code for receiving, from the roof system, a root system remotely. This is in a bid to provide for blockchain-mediated user approval and to have a list of potential application of a user system. According to the patent, the authentication system will be designed to encompass:
“At least one processor; and at least one non-transitory memory containing instructions that, when executed by the at least one processor, cause the authentication system to: publish a root system block for a user to a private blockchain.”
The Capital One Patent Sojourn
The patent which was released this week is a sojourn which started in July last year when Johnathan Weimer filed a license, the patent which shows that the company has been devoted on a project, exploring possibilities of the blockchain technology, for quite some time.
It appears that the idea behind the invention is to decongest the conventional computer system by modernizing authentication while improving user’s experience, the fact that some users have shown displeasure in the system which leaves them with no option but to respond to repeated authentication request which is often associated with different institutions. This is the basis for the proposed merging into what is described as “collaboration authentication system” which intends to handle authentication for varieties of institutions.
Though the patent further progressed in 2017, it is yet to be completed and may require some level of collaboration to overcome some technical issues to achieve this revolutionary initiative. The patent has it expressly stated in it that:
“A preferable authentication system would track authentication interactions for users attempting to access the computer systems of the participating institutions. Such an authentication system would be non-reputable, preventing users or institutions from later challenging authentication records as false or inaccurate. Furthermore, a preferable authentication system would limit sharing of personal information between the users and the institutions…The authentication system would also be constructed in a way that encouraged the participating institutions to trust in the validity of the authentication records. A need, therefore, exists for an authentication system architecture that addresses these technical problems.”
Undoubtedly, Capital One is a very long list of top financial stalwart and commercial services institution to file a patent for blockchain technology and integrate the technology into their business framework. Notably, many banks in China now use the blockchain technology in one way or the other. The Barclays Bank is also on its quest for a patent for developing a new digital currency.
Also, one of the most important uses of the patent is to fulfill not only statutory but also regulatory requirements which most financial institutions are legally required to comply with to reduce the risk of money laundering and to improve upon and secure the legacy of the conventional banking system.