Capital One Submits Blockchain Patent for Banking Security and User Authentication
Capital One Files For Blockchain Patent For User Authentication Purposes
American bank holding firm, Capital One has supposedly been considering blockchain technology to increase security and efficiency when it comes to user authentication. Another step that the Capital One team has taken that supplements their goal is their filing for a blockchain-based patent.
The patent was filed with the U.S Patent and Trademark Office sometime last year, and has only been revealed Thursday, August 16. The patent dubbed, “Blockchain Systems and Methods for User Authentication,” lists not only the methods, but also how they may come of use and the possible hindrances to deliberate on.
As per Coin Desk’s reporting, the entirety of the patent can be described as “a distributed, non-reputable record of authentication interactions,” that is, one that prevents one from calling out a record as being false. It has also been revealed that certain boundaries need to be in place, including limited access and ability to share personal information, the need for a system that tracks attempts into a system, and “trust in the validity of the authentication record.”
User information will be recovered the moment a user starts the authentication process. Regardless of whether the system will accept or reject the inserted information, the original data will always remain safely stored on the blockchain.
Another factor that must be considered is that of possible slowdowns. In particular, the patent notes such implementations can “impose time and resource burdens on the institutions.” Similarly, users may feel nuisance upon multiple authentication requests, especially when dealing with multiple institutions.
As for Capital One’s viewpoint, it seems that the bank holding firm trusts that both consumers and institutions will benefit with what’s being proposed. In particular, it has been shared that the user authentication “may therefore benefit from a collaborative authentication system that handles authentication interactions for multiple institutions.”
To learn more about Capital One’s collaborative authentication system, read the entire patent here.