Blockchain Projects of Mastercard vs Visa| DigiCodeWare

Mastercard vs. Visa: Blockchain Projects

This article was originally published at Mintdice.com

The blockchain projects of Mastercard vs. Visa. A move to blockchain by companies like Mastercard and Visa are very significant because they are among the corporations that have held skeptical views regarding Bitcoin and other altcoins.

There has been a lot of buzz surrounding cryptocurrency and blockchain, mostly due to the potential high sums of money that can be made in the industry. Recently, though, a lot of that attention has shifted to the applications of this technology across other industries.

Niches have emerged around this shift, including blockchain solutions providers, Initial Coin Offering (ICO) third parties, blockchain educators, software client developers and more. While the technology has made its way into industries such as logistics, agriculture, education, real estate, gaming technology and even commerce, the one link between them all is the finance industry.

The finance industry is mostly traditional in its approach towards global money operations and due to how sensitive the issue of money is, adoption of new technology is often slow. Blockchain technology in the form of Bitcoin is perhaps the first drastic form of innovation in money handling since then.

Unfortunately, not everyone sees Bitcoin as a good thing, with several people calling it a bubble and likening it’s potential doom to the dotcom era. Either way, the buzz generated by cryptocurrency and its underlying technology is one that hasn’t been heard of in the world of finance in a long time.

The finance world is built on the concept of access to money that central authorities control. Blockchain technology, on the other hand, takes consensus away from central authorities and places it in the hands of the network users.

For this reason, several banks and large corporations are opposed to the mainstream adoption of blockchain technology as the future of money. It may potentially disrupt the industry, change the face of investment and banking as well as render several banking methods obsolete. This type of change would force these corporations to either embrace a blockchain-driven approach to their operations or face being left behind by the rest of the world.

As a result, some corporations like Amazon, J.P.Morgan, and IBM have already developed solutions that incorporate blockchain services into their list of operations. The third party finance solutions providers are not left behind either. Visa card and Mastercard have already been making their foray into the blockchain industry since 2016, announcing several patents and services along the way.

This move to blockchain by companies like Mastercard and Visa are even more significant because they are among the corporations that have held skeptical views regarding Bitcoin and other altcoins.

Mastercard Blockchain Projects

Since its inception, Mastercard has played a pivotal role in the global finance industry. The financial solutions giant has been instrumental in the issuance, maintenance, and functionality of Mastercard credit cards and debit cards. It has also created innovative payment solutions like Maestro and campaigns like ‘Priceless.’

Now, the company has taken huge strides towards blockchain, what several people have termed “the future of money.” Currently, Mastercard holds up to 30 Blockchain related patents including an identity verification patent, a patent for anonymous transactions and a system that links cryptocurrency with a fiat account.

Despite the progress that the company has made, it is apparent that there is still ongoing research into more innovative applications of blockchain technology within its walls. In due time, more of those applications may be brought to light.

Mastercard Blockchain

Mastercard has filed over 30 patents for blockchain and cryptocurrency-related projects. One of the most prominent patents is for a blockchain-based payment system which promises to deliver instant payments to merchants, fast-tracking for customers and secure verification of payments.

The patent application which was termed “Method And System For Payment Card Verification Via Blockchain” recounts a method of payment processing, which uses a public blockchain to carry out the secure retrieval and verification of the users’ information.

In the patent description, Mastercard described how vulnerable the currently existing method of “wireless transmission of payment credentials” is. According to the company, bad actors can intercept this transmission, stealing users information and using it for fraudulent activities. Due to the security of the blockchain, the company will use it to convey user’s payment credentials securely, essentially protecting them from theft. Through this means, there will be “minimal participation by the consumer.”

As a result, the entire payment process will be more straightforward for the customer, killing two birds with one stone. Mastercard believes that the provision of an application that can quickly and securely convey information to the point of sale (POS) device without subjecting the customer to any form of stress, is a pressing need in the industry.

Mastercard and Innovation

While the blockchain-related moves by Mastercard may have come unexpected, upon closer inspection into the company’s history, it’s not difficult to see why this direction has been taken.

All through its 50-year existence, the finance solutions giant has shown its staunch dedication to technology-driven innovation. Things like credit cards, which seem simple, took research, time and resources to create and now, most Americans have at least one credit card. Banking has become easier now than it was in the days when most of the money in existence was physical. Along the way, Mastercard has secured partnerships and acquisitions with its innovative goal in mind.

Given the company’s history, it’s safe to say that the blockchain solutions it will create, will indeed make life easier for a significant number of people. The value-driven approach taken by the company would be on a global scale.

 

Visa Blockchain Solutions

Just like Mastercard, Visa has been working to improve certain parts of the financial sector. The solutions giant has approached this problem solving by focusing on functionality, user experience, and other relevant areas. The company has prioritized scalability, security, governance, creativity, and interoperability.

With these guiding principles, Visa has designed a platform that will incorporate blockchain technology as its major driving force. The platform will use an API-first strategy to ensure that it is scalable, flexible and user-friendly.

Although Visa does not have nearly as many blockchain patents as Mastercard, its blockchain solution has the potential to make life easier for businesses. Apart from satisfying consumers, Visa’s approach to blockchain technology will hopefully create value for its partners.

Visa and Innovation

For a long time, Visa has been a huge driver of innovation in the finance industry. From solutions like the ATM to its modernization of payment technology in African countries, the corporation has managed to stay on top. This is why it is expected that such a company would not miss an opportunity to take advantage of the incredible potential that blockchain technology brings.

In 2016, Visa announced its plans to introduce mVisa in Nigeria as a way to make payments easier for the individuals and businesses that reside there. The solution involves the ability to make payments with the use of QR codes that can be scanned on smartphones. Since the country has over 150 million active smartphone users, it is an excellent alternative to POS device payments.

There has been a lot of buzz surrounding cryptocurrency and blockchain, mostly due to the potential high sums of money that can be made in the industry. Recently, though, a lot of that attention has shifted to the applications of this technology across other industries.

Niches have emerged around this shift, including blockchain solutions providers, Initial Coin Offering (ICO) third parties, blockchain educators, software client developers and more. While the technology has made its way into industries such as logistics, agriculture, education, real estate, gaming technology and even commerce, the one link between them all is the finance industry.

 

Mastercard Blockchain vs. Visa Blockchain

While both corporations have decided to adopt and apply blockchain technology, there is a significant difference between the problems that each one is trying to solve.

Mastercard has focused on the issue of credit card skimming by creating a private network solution for the transfer, encryption, and verification of a user’s credentials to avoid theft. This approach makes transactions between vendors and clients safer, thereby focusing mainly on security.

Visa, on the other hand, aims to tackle the friction between third parties when a cross-border transfer is initiated. Although individuals have gotten used to the wait time experienced during wire transfers, Visa finds it unnatural. These long wait times slow business down and waste valuable time.

Both companies have managed to implement blockchain technology without necessarily being in direct competition with each other. However, Mastercard has significantly higher stakes in the use of the technology. Apart from securing almost 30 patents, its collaborations with other companies as well as significant partnerships towards blockchain adoption prove this.

 

 

Mastercard and Visa have made significant strides in the blockchain industry and the financial sector as a whole. However, competitors like American Express are fast on their heels with numerous patents in blockchain related inventions.

Mastercard continues to lead by a long shot, despite Visa’s patented “digital asset network.” The details of several Mastercard blockchain patents are still unclear, but there is a lot of anticipation in the ecosystem about what the company will dish out in the future.

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Prachi Sharma

In love with coding. A technophile and a web developer.

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