Japan-based tech conglomerate Hitachi and telecommunication giant KDDI are testing a blockchain-based system that can settle retail payments validated using shoppers’ fingerprints.
According to a release on Wednesday, a group of staff from the two partners are this week experimenting with a coupon settlement system deployed in a KDDI store in Tokyo’s Shinjuku district, as well as a local donut shop.
Built by Hitachi with technology from the Hyperledger Fabric platform, the blockchain system is integrated with Hitachi’s biometric verification and KDDI’s existing coupon system. It seeks to settle shoppers’ coupon transactions over a distributed network using their fingerprints as validators.
Hitachi explained that when shoppers sign up to use the system, they will register their coupon credits and biometric information, which are then encoded into a string of encrypted data and stored on the blockchain.
When initiating a transaction at a retail shop that accepts the coupons and participates in the blockchain as a node, shoppers will verify their identity with a fingerprint reading device that broadcasts the request to the network and the transaction is settled.
Hitachi said the end goal is to use a tamper-proof blockchain to assist in verifying users’ fingerprints and to keep their coupon usage information accurate and updated across stores within the network simultaneously.
“As a result, users can authenticate themselves by holding the finger on the authentication infrastructure, so it is not necessary to present a coupon at the store, and the coupon can be used even without a smartphone,” the company said in the release.
The project is the latest pilot test taken by Hitachi to utilize a blockchain platform in retail transactions. Last year, the company also announced it is developing a blockchain platform for supply chain businesses to manage orders and invoices on an immutable ledger.
Hitachi image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
Let’s block ads! (Why?)