Business-to-business transactions are about to get much easier thanks to MasterCard who just applied for a patent for a blockchain-based system that will help simplify the process for businesses.
The market for the service is certainly there, as MasterCard has stated that it has seen the need for a more uniform system of businesses to deal with each other.
Blockchain technology could be the solution to this at it works with a great deal of uniformity while making sure that transactions are stored in a tamper-proof manner.
This series of developments are part of a group of three patents the company filed with the U.S Patent and Trade Office.
The patent stated that the current system of business transaction has become outdated in the 21st century and needs to change.
“Currently, existing settlement systems often operate using the settlement of individual payment transactions. For example, after a transaction is processed, the issuing bank will transfer funds for that single transaction to the settlement network, which will then forward the funds for that single transaction on to the acquiring bank. Since most businesses are not financial firms, or financially regulated, B2B transactional innovation left payment flows between the parties intact,” The patent stated.
“As a result, 21st century B2B collaboration sits on an unwieldy, unconnected and largely unchanged mid-20th century B2B payments platform. As the number of transactions being processed, and therefore settled, increases, the strain on the processing power of settlement systems and those of financial institutions increases, as well as the number of fund transfers that must occur every day.”
A Perfect Solution
Blockchain technology, MasterCard believes, is the solution to the problem being faced by businesses when it comes to transactions.
On one hand, information will be stored on a uniform and easily accessible system. This means that the parties involved can access the information at any time and audit it if necessary. This brings an unprecedented level of transparency and accountability to business.
At the same time, the blockchain technology ensures that the information is very unsusceptible to hacking and tampering. This provides security for the information in question and ensures the best of both worlds.
According to the patent, the system upon which the technology will run can be either a public one or a private one.