JCB and Keychain GK have developed a novel infrastructure for processing credit-based micropayments between IoT devices. The innovation promises to enable direct human-to-machine and machine-to-machine payments at scale without the confines of credit cards.
As new networks, such as 5G, deploy and the
use of Internet of Things (IoT) devices grow, so will the need for
automated and machine-to-machine micropayments. Mobile payment apps
enabled the common mobile user to pay with their phone, however the
current payment
infrastructure does not support tens of billions of IoT devices. Use
cases in point: electric vehicles automatically paying for charging, or a
farmer receiving payment for produce to a mobile device while offline.
Such an infrastructure needs to handle vast
cybersecurity and operational risks related to identity fraud, hacking,
privacy and denial of service.
JCB and Keychain have begun solving these challenges by implementing a
new blockchain and distributed ledger-based payment infrastructure that
mitigates the risks of IoT micropayments.
Micropayment Infrastructure
JCB and Keychain developed the solution based on digital identity,
delegated transaction approval, and secure transaction archival (joint
Japan patent pending #2021-00571).
1. Integrated digital identity
– Each IoT device has a unique, blockchain-based, self-sovereign
identity associated with customer identity. This establishes a necessary
technical basis for behavior attribution and regulatory compliance.
2. Delegated transaction approval at the network’s edge
– Using Keychain Core’s data provenance capability, the cost,
operational risks, and financial risks of payment processing are pushed
towards the edges of the network. This enables mitigating large-scale
cybersecurity attacks with comparatively large-scale
defenses.
– Transaction approval is processed in real time by devices geographically closer to the location of the transaction.
– The result is a smoother, lower latency user experience and more scalable risk mitigation for the issuer.
3. Secure transaction record archival
– Using identity-based data provenance and security techniques, the
system ensures that data is securely relayed to the issuer for
compliance and integrity checking.
– The records integrate into conventional settlement systems, leveraging the digital identity-user mappings.
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The go-to-market plan consists of enhancing the technology, practical
real-world pilots, production infrastructure build out during 2021, and
go-live in 2022.
Keychain Blockchain Technology
Keychain Core, Keychain’s flagship technology product, is a set of
software building blocks that enable Keychain partners to easily exploit
the power of blockchain and distributed ledger technology. With
Keychain Core, Keychain partners reduce operational risks
related to data security and achieve new patterns of business. Keychain
Core natively supports a wide range of devices including personal
computers, tablets, smart phones, smart watches, and Internet of Things
(IoT) devices easy to integrate with existing
systems and applications.
Keychain Core main elements are the following:
1. Self-sovereign identity
2. Data-centric security
3. Secure workflows
4. Custom digital assets
