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Shift4 Discusses EMV and Blockchain Cooperation in Payment Processing

Source: bitcoin

Bitcoin Debit Card

On Tuessday afternoon at the Money 20/20 conference in Las Vegas, Daniel Montellano, director of strategic business development at Shift4 Corporation spoke to the benefits of using the EMV standard (also known as “chip”) technology, as well as how blockchain technology will affect payment processors.

Also read: HYPR Announces $3M Funding Round for Biometric Security Products

Shift4, a leading pioneer in initially implementing tokenization technologies into the payments world, serving over 33,000 merchants, provides industry-level secure transaction environments.

EMV technology has arisen partially in response to the fact that businesses are continuing to take damage from chargebacks, thereby hurting consumers as a result. EMV has hit a point where retailers are forming together to get alter their credit card acceptance hardware and processes, in turn leaving behind industry players who ignore this crucial imperative as a result.

In 2006, Payment Card Industry (PCI) standards were created to help create a security blueprint for accepting credit card transactions. While data breaches remained in a relatively infancy stage, PCI implicated the storage, processing, and transmission of data due to increased malware risk.

Tokenization practices, which leverage point-to-point encryption within the EMV process, however, preserve underlying data. Therefore, when a data breach occurs on a tokenization-based network such as Shift4, tokens are breached, but not the underlying data itself. Additionally, tokenization security is not necessarily limited to credit cards alone, as gift cards or personally identifiable information (PII) can be subject to tokenization measures.

Corresponding services, in turn, need to purchase the proper hardware infrastructure to support the desired scalability and security of their services. As friendly fraud has increased three-fold since October 1st, chargebacks are becoming an increasingly relevant problem for credit card companies.

Shift4, however, claims to have robust EMV solutions that strengthen security on centralized credit card networks and record a unique token for each payment that can be reactively traced back to individuals as needed.

Shift4 Says That Blockchain Tech Can Work With Existing Systems

When discussing how the ongoing trends in payment processors can influence the blockchain community, Montellano referenced how blockchain tech is different than the role played by payment processors, as tokenization coins that secure data need to be re-used in the 1-to-1 blockchain identity model. Coupling existing solutions, however, can potentially enable the juxtaposing financial technologies of EMV and blockchain to compliment one another.

“Until we have common place what a blockchain actually is, it won’t disrupt tokenization,” Montellano remarked.

“If you look at what’s on top of people’s minds, you look at EMV and some of these emerging technologies there (such as blockchain), you have to ask where the focus is,” he continued.

While banks may be focusing on blockchain development, payment processors face a unique set of challenges that necessitate compliance around regulatory best-practices within their sector. Montellano said: “Understanding, awareness, and education around blockchain will need to increase first. . .at least in our world (payment processors), it’s not necessarily a common conversation.”

The quick adoption with EMV in the United States, however, demonstrates the potential for technology to be quickly disruptive once it reaches a proficient level of security and performance. A very similar pattern of implementation and growth likely exists for blockchain technology in the payments processing space.

What do you think of Shift4’s position on EMV and blockchains? Share your thoughts in the comments below!


Images courtesy of Groupon, Shift4.

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Shift4 Discusses EMV and Blockchain Cooperation in Payment Processing

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The Future of IoT: Blockchain Biometrics with HYPR

Source: bitcoin

HYPR blockchain

Biometrics is a new and effective trend in the security industry. HYPR deploys biometrics in financial applications, but also adds the benefits of decentralized technology to enable enterprises to eliminate passwords and replace them with biometrics.

Also read: Technical Analysis: Weekend Bitcoin Price Drop Explained

HYPR: Biometrics Decentralized

The blockchain biometrics firm, which has worked with Fortune 500 and Global 2000 firms on proof-of-concepts,

Rather than storing fingerprints, facial features, iris images, or voice patterns, an end user’s biometric signature is encrypted and stored on-device in a decentralized manner.

“So while today a large financial institution might warehouse passwords for users of their consumer-facing mobile app, with HYPR our partners do not store passwords or biometrics—this information is distributed across thousands or millions of mobile or desktop devices,” George Avetisov, CEO HYPR Corp, told Bitcoinist. “They are accessed on-device through compliant sensors that safely validate identity in response to a cryptographic challenge. A bank or other enterprise would not hold them.”

The most familiar protocol HYPR supports for working with biometrics are those by  Fast ID Online (FIDO) Alliance, a non-profit dedicated to changing the nature of online authentication: “Something that blockchain boosters should learn more about,” Avetisov notes.

Hypr is working to biometrically secure blockchain-centric use cases like cryptocurrencies, digital identities, and private keys through its partnership with BitGo, a Silicon Valley bank.

Besides the underlying Elliptic Curve Cryptography that is common to both HYPR Biometric tokenization and the Bitcoin protocol, another parallel between HYPR decentralized biometrics and the blockchain is the common use of hardware (TPM) to as a private key-store.

Biometrics and the IoT already play a key role as we see it and as we are deploying it,” Avetisov said. “The IoT will only succeed if the convenience of a connected setting matches that of our analog environment. If there’s a need to present a password on a mobile device to log into IoT systems, we’re already putting a barrier between the user and his or her home or automobile.”

Top security for entry into systems must also be a feature of an IoT lifestyle. “Not only are passwords insecure, or strong passwords a horrible experience on mobile, or two-factor authentication a usability nightmare for IoT,” Avetisov said. “They don’t provide the security required for our connected life to be as safe as our analog. Far from it: IoT systems introduce or exacerbate vulnerabilities because hacking homes, cars, physical access at critical infrastructure and so on can put us in danger on a moment’s notice.”

HYPR expects that by 2017 millions of users in verticals like financial services, healthcare, and the IoT will log into their systems securely with the unequaled user experience that biometrics provides.

“So the real revolution here is in user experience but also the underlying security, and we shouldn’t overlook the fact that it is the secure, privacy-preserving nature of today’s biometrics that provides that usability in the first place,” Avetisov said.

Blockchain technology is widely heralded as being a potential means for proving ownership of IoT devices±and biometric tokenization is coming up as a strong method for securing ownership to those devices.

At HYPR concern would be about where the data are stored because whether health-related, strategic, or just based on privacy we never want a wholesale breach of it simply because it’s stored in an application whose security is insecure due to it being password-based.

What do you think of decentralized biometrics? Let us know in the comments below!


Images courtesy of HYPR. 

The post The Future of IoT: Blockchain Biometrics with HYPR appeared first on Bitcoinist.net.

The Future of IoT: Blockchain Biometrics with HYPR

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