Although the debate continues on Bitcoin and other cryptocurrencies, the interest in and application of blockchain technology — an essential component of cryptocurrency architecture — is growing. In July, the U.S. Patent and Trademark Office (USPTO) awarded American Express a patent for a payment system that uses a blockchain-based proof of payment.
Cryptovest reports that the financial services company filed for the patent, developed by its travel unit, in January 2017.
“[T]he new system will automate proof-of-payments by generating a payment payload that includes the merchant’s ID and the transaction amount and encrypting the data on an initial blockchain node.”
The proposed system, says Cryptovest, will enable connected smart devices to validate proof-of-payments and initiate actions, and will have its place in transactions such as hotel reservations, rental, or ensure ticketless access to venues.
American Express’ interest in blockchain technology was already well established with its membership in Hyperledger — an open source project to advance cross-industry blockchain technologies — and RippleNet — a decentralized network of independent banks and payment providers, which has more than 100 members and growing.
Cryptovest also notes that American Express isn’t alone in its patent activity. Recently, the USPTO granted IBM two blockchain-related patents.