Capital One Files Patent For Blockchain-Based Collaborative Authentication System

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Capital One, has filed a patent application for the implementation of blockchain technology in user authentication.

The American bank holding corporation filed this patent recently, according to a publication released by the USPTO on Thursday, August 16.

The published documents revealed that this latest inquiry is a continued of a patent application that the company had submitted to the USPTO back in June 2017.

Authentication process to be done on multiple blockchain-based platforms

Capital One is looking to design a system that will receive, store, record, and retrieve authentication information for a user. All these will take place in multiple blockchain-based member platforms.

USPTO added that according to the filing, recording of users’ personal data in blockchain will make it possible for members of the authentication system to get user ID data from a database once they make use of the authentication information.

The document also discussed a use case example of the system as it can be used for authentication in the context of a business process subject to statutory or regulatory requirements, such as ‘Know Your Customer’ requirements.

The patent, however, noted that such types of authentication requirements might cause time and resource burdens on the institutions. The patent added that:

Users may resent having to respond to repeated authentication requests as they navigate between computer systems associated with different institutions. Institutions and users may, therefore, benefit from a collaborative authentication system that handles authentication interactions for multiple institutions.

Capital One recognized that some users or companies might later challenge authentication records as false or inaccurate. This is why the proposed system would be non-repudiable.

The system would be designed also to limit the sharing of personal information between users and institutions.

Capital One always bullish on blockchain

This isn’t the first time that Capital One is entering the Blockchain world. The company, two years ago, partnered with LA-based blockchain company Gem.

The duo worked on a system that would solve the problem of health providers’ long wait of getting paid by insurance companies.

Back then, Capital One stated that the Blockchain technology is a very important one as it connects the ecosystem to universal infrastructure. The shared infrastructure of technology also enables global standards that do not compromise privacy and security.

Even though some governments and companies are skeptical about cryptocurrencies, the Blockchain technology has been more acceptable. Banks, governments, and companies all over the world are making use of technology to solve problems plaguing them.

The technology is still in its early stage, but all signs point to the fact that it would be very useful in the global economy.

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