This isn’t about EMVCo Contactless and does not appear to be using an existing crypto-based blockchain, although it could be something new on top of Ethereum – but the article only vaguely describes generic advantages of blockchains and fails to deliver sufficient information regarding how any specific solution is engineered. It’s unclear what happens at the point of sale, what technology is used (bar code, NFC, or other), how it is implemented in mobile devices (especially Apple, which locks down NFC). It also fails to describe what new software and payment routing needs to be added to the POS.
The article indicates that “transactions are recorded in multiple separate blocks. Therefore, if one block is attacked, the other blocks would still have the information safe and secure.” I wonder if this is describing a traditional blockchain, or something new. When properly constructed with a solid trust algorithm and crypto architecture, writing the same transaction to two blocks shouldn’t be needed.
I know blockchain solutions will improve payments, but this article doesn’t describe how or for whom, it only provides a general theory that blockchain is good:
“Blockchain technology is based on a distributed ledger which stores and updates transactions in real time. Each transaction that is recorded on a block has a time stamp, which makes it impossible to tamper with the data. Hence, blockchain promotes security and trust in transactions for both seller and buyer. When payment is done through a system based on blockchain, the transactions are fast, secure, and contactless — where both parties also trust each other. Moreover, as the data is encrypted, it is not possible for anyone to modify it.
How It Works
With the help of blockchain technology, transactions are recorded in multiple separate blocks. Therefore, if one block is attacked, the other blocks would still have the information safe and secure.
When trying to hack a system based on blockchain, criminals would need to have incredible computing power to overcome and compromise the multitude of blocks simultaneously. This means that it is nearly impossible to hack a blockchain-based system.
To better understand this, consider that you have a cash note which has an encrypted data ledger. It has the details of all the transactions on it during the entire course of its lifetime. When you get the note, you can see all its transaction history and can decide whether the person giving you the note is trustworthy enough to conduct a transaction with.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group