American banking giant Capital One is working on the use of the blockchain to create more convenient and safe methods of user authentication – for use, for example, in banking security systems.
According to the patent application, published on Thursday and filed in June 2017 with the US Patent and Trademark Office (USPTO), Capital One creates a blockchain system that allows users to receive, store and retrieve encrypted user authentication data.
The document describes a “distributed, trustworthy register of authentication interactions” that allows users to authenticate themselves in various institutions, but limits the amount of information shared between them.
In fact, this method allows you to retrieve the user’s identity when it starts the authentication process (provided that the user has the appropriate profile). The system then authenticates or denies the user based on the information received, but the user data itself is securely stored in the blockchain.
This innovation is said to help institutions reduce “time and resources” in the beginning of working with new clients. Moreover, as the patent application says, this system can be useful to users who, passing from one institution to another, can “be outraged” by the need for re-authentication.
Thus, according to Capital One, institutions and customers “can benefit from using a unified authentication system that manages authentication interactions for different institutions.”
One of the possible applications of this technology in business, according to the authors of the patent, can be the satisfaction of “legislative and regulatory requirements for the identification of customers” that must be observed by most financial institutions of the world in order to reduce the risk of money laundering.