Korea’s Greatest Mastercard Firm Successes Patent for Blockchain Credit Framework

Categories: Asma Raza


“Blockchain” is one of the most drifting popular expressions of this decade. Everybody is discussing it. Along these lines, this term merits the talk so as to investigate how it functions and its potential application in this quick evolving condition.

  1. About Blockchain Innovation
  2. What is blockchain?

The idea of blockchain can be comprehended by drawing a similarity from Google spreadsheets or MS Exceed expectations (Windows). This spreadsheet is shared among various systems of PC, where everybody has a duplicate of it. The spreadsheet contains data of the exchanges submitted by genuine individuals. Anybody on the system can get to that spreadsheet however nobody can alter it. This is Blockchain.[1]

A blockchain is fundamentally a chain of obstructs that contains any arrangement of data.

  1. How can it work?

Blockchain was initially proposed to timestamp computerized reports with the goal that it is absurd to expect to antedate them. A blockchain is a conveyed record that is available to anybody in the system. When information is recorded inside a blockchain, it is totally hard to transform it. Each square contains a few information, the hash of the square and the hash of the past square. The information put away inside the square relies on the sort of blockchain. A hash has a special identifier for a specific arrangement of a square with the majority of its substance. At the point when a square is made, its hash is determined. The hash will change with the substance of the square. Accordingly, if there should arise an occurrence of any adjustment in the substance of the square, the has will change, and the square would not be recognized as a similar unique square. Each square likewise contains the hash of the past square. The main square of the square chain does not contain any hash of a past square and is called as a beginning square. In the event that data in any of the square is altered, it will make the hash of the square change. Accordingly, the accompanying square having the first hash of the changed square won’t coordinate with the new hash of the changed square. Thus every one of the squares ensuing to the changed square will be invalid. Also, the data will be verified.

To fortify the framework further, the blockchain utilizes another approach known as a confirmation of work. It is a component that hinders the production of new obstructs into the chain. For example, on account of Bitcoin, it requires around 10 minutes to ascertain the confirmation of work and add a new square to the chain. This verification of work instrument makes it difficult to alter the squares, in such a case that one square is messed with, the proof of work for all the accompanying squares will be should have been determined again[2].

  1. About the Firm

Since its commencement as Shinhan Bank in 1982, Shinhan Financial Group (SFG) has conceded to advancements and as an outcome of which the gathering has posted development in business a seemingly endless amount of time after year. As Shinhan Bank, the business element was focussed after fortifying financial business arrangement and to discover intends to extend business lines in the budgetary industry[3].

Shinhan Card Co. is another organization in the SFG. Propelled on Oct. 1, 2007, upon merger between LG Card and Shinhan Card (new), Shinhan Card has now progressed toward becoming on of the top players of the market and has issued around 15 million cards till date[4].

  1. About Blockchain Credit Framework

Traditional credit exchanges were made through VAN (Value Added Network) or PG (Payment Gateway), which interfaces purchasers, vendors and card organizations. In this way, in the customary technique, the VAN organization or the PG organization expedites the exchange and obtains the commission as per the number of exchanges, the charge for the Mastercard trader is brought down. It is hard to sidestep the VAN organization or the PG organization. This prompted the appropriation of Blockchain Innovation in such credit systems[5].

The Blockchain Credit Framework could introduce cardless credit exchanges that would see clients of the framework make installments utilizing applications on cell phones. In such advancement, the creation would disturb the customary card framework dependent on three go-betweens: the Mastercard organization, a worth included system (VAN) specialist co-op and an installment gateway[6].

  1. About the Patent

Shinhan Card Co. has as of late been allowed a patent[7] dependent on the utilization of blockchain innovation on the credit framework. Titled as “Credit virtual cash age gadget and credit virtual cash the executive’s gadget”, the development is fundamentally a cash age gadget containing three particular units. Initial, a blockchain age unit for producing a blockchain, which incorporates virtual cash created by a credit farthest point of a shopper, and for refreshing the blockchain as per the installment history of the customer. Second, a record the board unit for overseeing multi-marks of a majority of records sharing the blockchain. What’s more, third, the exchange age unit for putting away an exchange condition relating to each record, which can be multiple, and continuing with installments utilizing the blockchain as indicated by the exchange condition[8].

  1. The Case

The patent record contains 22 cases altogether, with Case 1, 8, 15 and 17 as autonomous cases (4). These cases are related with the processor, a correspondence unit and a PC – decipherable chronicle medium. Shinhan Card is presently looking to grow the credit patent to Europe, the U.S., Japan, China, Vietnam, and Indonesia[9].

  1. Effect of the Patent

As of late, endeavors have been made to execute an exchange procedure that does not have a VAN organization or a PG organization. To bring down the shipper commission charge by utilizing an (Application) application installment technique has an impediment that the record move strategy isn’t a credit exchange. Hence, buyers who are happy to pay for Mastercard utilization and credit may have the bother of devouring just inside the record balance through the installment of the application-to-application installment.

Utilization of this patent will empower the cardless credit exchanges that would empower the clients of the support of make installments by utilizing applications on cell phones, this won’t just tackle the present need of credit framework on versatile applications, yet additionally empower to sidestep VAN and PG organizes as well[10].


The patent on the utilization of Blockchain innovation in credit frameworks has released another transformation that has decreased the expense of exchanges, yet has additionally gotten productivity and security exchanges by the execution of such innovation. As this innovation gets consumed in the market, clients will never again be required to pay exchange charges, accordingly diminishing the weight of expenses upon such clients.


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