One of the leading global payments and technology companies, Mastercard, has applied for an anonymous crypto transaction patent. This comes as a surprise given that the company has previously criticized cryptocurrencies. The patent document describes a superior method of anonymizing crypto transactions which is different from that offered by privacy coins like Monero.
The crypto transaction patent seeks to anonymize transactions through coin mixing
The document describes a method that sounds like coin mixing. It’s a service that other different crypto businesses have been offering for years.
Coin mixing also known as tumbling is a process where one takes different inputs from other senders,mixes them and pushes new transactions from the recipient address. This helps hide the original source of the funds.
The patent describes the process as follows; when a blockchain node receives a request, it can process the transaction to transfer the specified amount from the processing server’s crypto wallet to that of the recipient’s device.
In some cases, the processing server will notify the sender device/ the recipient’s device of the transfer.
“As a result, the sender may transfer a specific amount of digital currency to the recipient with increased anonymity, as the blockchain may reflect only that the sender sent currency to the processing server and that the recipient received currency from the processing server. When using the processing server across multiple transactions, and with multiple entities using the processing server, the true source or destination for any transaction is obscured to the point of being impossible to identify.”
“If used for each transaction, a nefarious actor looking at the transactions for the sender 104 will only see transfers to and from the processing server, thus revealing no information about the sender’s spending habits, thus protecting the sender’s anonymity.”
However, to increase the level of anonymity, the processing server will use several blockchain wallets. In such a case, the processing server will “possess a plurality of different cryptographic key pairs.”
It’s still unclear how MasterCard intends to use this patent, for now, we will have to wait and see.
What’s your take on MasterCard applying for an anonymous crypto transaction patent? Share your thoughts in the comments section below.