Hitachi, a global electronics conglomerate has revealed it’s testing a blockchain to authenticate shoppers through their biometric features when they make payments. According to the Japanese company, customers will first need to register on the biometric and the coupon credits systems. Data will subsequently be encrypted and stored on a blockchain.
Upon payment, coupons will perform the duty of nodes on a blockchain network. The system will be trialed at several stores in Tokyo where shoppers would authenticate their identity via a fingerprint scanner. The transaction request will then be sent to the network that will verify and approve the payment.
The company aims for technology to perform “automatic generation of electronic signature with characteristic data of biometric information with low risk of theft,” according to the statement. As well as utilizing the Hyperledger technology, Public Biometrics Infrastructure (PBI) will also be used to perform the task.
Hitachi says they decided to implement the system since it provides a secure way for customers to use the coupons system across multiple stores while the information is kept constnatly updated. For customers, this would mean a simplification of the purchasing process as they wouldn’t need to have a smartphone or a paper coupon with them.
WHY IS IT IMPORTANT?
1. Hitachi is the 10th largest company in Japan and one of the biggest electronics companies in the world and is set to become first in utilizing a blockchain for in-store purchases.
2. Earlier, Spanish bank consortium, Niuron, said that it will develop a new blockchain-based system aimed at verifying the digital identification of its customers online.