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Bitcoin Global News (BGN)

June 01, 2018 -- ADVFN Crypto NewsWire -- Mastercard was just confirmed for a patent that they had filed back in 2016 which describes a method for using the main aspects of cryptocurrencies such as cryptographic signatures, wallets, and blockchain style data collection to improve coupons.

"Method and System for Authentication of Coupons via Blockchain"

The the main objective is specifically “the storage of coupon data in a blockchain to ensure redemption only by authorized individuals and immutability of coupon data."

Blockchain will help reduce the risk of data manipulation that comes from certain types of systems for storing coupon data. Coupons can be created using blockchain technology to directly associate a coupon with a transaction account. This ensures that only the specified transaction account is eligible to redeem the coupon.

Further, it makes coupons finite. They can be used only once, and not be duplicated. Following a successful transaction, the system will automatically transfer the coupon from the customer’s wallet to burn address or an address associated with invalidated coupons.

Downfalls

This patent highlights that this will require new data storage techniques that hold the information of the coupons and associated transaction accounts. This can be resource-intensive and subject to data manipulation. In addition, POS systems will need to be updated or completely replaced in order to integrate the new technology.

On cryptocurrencies in general Mastercard CEO Ajay Banga has said that the firm will support government-created cryptocurrencies if they are developed in the future, but said that “non-government mandated currency is junk.”

Competition

American Express recently announced that it was using blockchain technology to update its loyalty rewards program. The new system is based on Hyperledger. Merchants can create membership rewards offers for Amex customers on their own platforms. These offers can be totally unique, even allowing businesses to assign bonus points to individual products.

By: BGN Editorial Staff



 

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