- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
Visa, one of the largest global payment solution providers, has come up with its own data management tool which is entirely based on blockchain. The new blockchain system, called LucidiTEE, is poised to replace the legacy fintech data management software.
Visa’s Research and Development wing has published a paper based on the workings of the system. It includes a comprehensive report on the design and evaluation of the new tool which has placed significant emphasis on transparency and control.
The tool enables multiple parties to process users’ private data while ensuring policy-compliance even when the input providers are offline. The policies will be agreed upon before the tool is initiated. The official release of the tool states:
“For this level of control, the system must ensure policy compliance, and we demonstrate, using modern applications, the need for history-based policies, where any decision to compute on users’ data depends on prior use of that data.”
LucidiTEE provides protection against adversaries in cases when one of the parties is acting maliciously. Legacy fintech systems for handling data were intrinsically flawed as they did not provide any safeguards against potential irregularities and misuse of data.
The new blockchain-based system is designed to exchange data between the customers and financial applications. It will also allow banks to exchange user data via secure channel, without any intercession of an aggregator. Blockchain-powered computation ensures that all exchanges are delivered in real-time, which further reduces the likelihood of a fraud taking place. Moreover, it automatically uses a digital distributed ledger to enforce policies; there is no need to store inputs, outputs or to maintain different statuses.
The programming behind LucidiTEE enables the system to wield bank data as input for processing and preparation of a machine learning model, which will fight scams and secure data of the users’ finances from other malicious or commercial parties.
Blockchain Gradually Replaces Old Legacy Systems
Blockchain-based technology has been on a steep surge in recent years. The astounding adoption of the concept can be traced to its exceptional features which ensure anonymity and real time operations. Many issues with old legacy systems can be directly solved with blockchain integration.
This is not the first time that Visa has opted for blockchain as a backend for its key software. We previously learned that the payment solution provider was exploring a blockchain-based identification system in a partnership with IBM. Visa also recently made an investment in the crypto holding firm Anchorage.
Many other tech giants are involved in similar blockchain pursuits where the key goal is to integrate blockchain into legacy systems or replace them entirely in order to improve performance, enhance transparency and generally make the process more convenient and secure.