At a time when regulators are looking for ways to break into so-called privacy coins to see whether users are criminals, MasterCard thinks it has come up with a way to make your crypto transactions truly private.
In a patent application published Thursday by the U.S. Patent and Trademark Office, the credit card company’s system would use blockchain technology to make the point of origin and the amount being transacted unintelligible.
Here’s how it would work, according to CoinDesk: An intermediate address would be used during a transaction that interacts with the public key. The transaction data are stored and a new transaction and digital signature are generated using a private key. The new transaction data, which would contain the destination address and the payment amount, would be sent on.
The method “would result in showing the user only transferring funds to and receiving funds from a small number of addresses that are also involved in a significantly large volume of transactions with various other users, thereby rendering the data innocuous,” according to the filing states. The amounts could also be hidden using the same process of multiple addresses. Read more here.