Capital One Seeks Blockchain Patent for User Authentication

Now it is the turn of Capital One to seek a patent from the United States Patent and Trademarks Office for its new user authentication app. This is one more firm in the banking sector that is showing interest in blockchain technology adoption since it sees it as a secure one. Though there are other major financial service providers like JPMorgan Chase that have indicated their interest in the emerging technology, nothing concrete has emerged until now. As a result, there are also skepticisms.

Primary Concern

Capital One is a holding firm that is focused on bank loans and credit cards. The company is more concerned about security due to increasing cyber-attack from hackers. The patent documents that have a title of “Blockchain Systems and Methods for User Authentication” was filed in Virginia with inventors as Johnathan Weimer and Ryan Fox. The details of the project are given in its abstract, according to ccn.com report. The company disclosed that it is developing computer-powered methods and systems for blockchain-mediated user authentication.

The financial services provider has also listed possible applications of a user system with the help of blockchain technology. This included verification messages. This involves root system authenticating the user successfully and adds an authorization code from the root system for getting since it is a secret tool. This will consist of a minimum of one processor and one non-transitory memory along with “instructions that, when executed by the at least one processor, cause the authentication system to publish a root system block for a user to a private blockchain.”

The key point is that the latest patent filed by Capital One is a follow-up or continuation of an earlier patent filed in June last year by the same inventor. This suggested that the company is on the job for quite some time and is keen to decongest computer systems. This will be done through streamlining authentication process and at the same time enhance user experience. This became necessary due to users’ resentment of repeated authentication requests in connection with various institutions.

One of the use cases is to merge everything into a collective authentication system so that it could take care of multiple institutions’ authentication interactions. At the same time, the work in respect of the patent filed last year is yet to be completed. This might need some collaboration to overcome some technical issues.

Preferable Authentication System

As per the patent application, the system would keep monitoring authentication interactions when users try to get access to the computer systems of institutions involved in it. Capital One stated that such kind of process is non-reputable since it curbs institutions or users from challenging authentication records as inaccurate or false later. On the other hand, a preferable authentication system will restrict the sharing of personal data.

The authors disclosed, “The authentication system would also be constructed in a way that encouraged the participating institutions to trust in the validity of the authentication records. A need, therefore, exists for an authentication system architecture that addresses these technical problems.”