Blockchain technology is synonymous with Bitcoin, however, it can apply to a wide range of financial market needs. This was demonstrated on February 26 when SoftBank and TBCASoft Launch issued a joint statement that they would use blockchain technology to create a new identification and authentication system as part of the Carrier Blockchain Study Group (CBSG).
CBSG is a group working on innovations related to blockchain technology for over a year now. The group began as six members, which included both SoftBank and TBCASoft, but has expanded to 12 members as of July of last year.
The original purpose of the CBSG was to provide its members, as well as potential customers, a secure means for handling digital payments. It would also function as a sort of clearinghouse, where transactions could be processed and stored, personal identification could be authenticated, as well as ensuring that cybersecurity related to these transactions was increased.
It looks like the group has reached one of their stated goals by providing this new identification and authentication technology. What has made it unique is that it does not rely on any form of a centralized database to identify users.
Instead, the blockchain technology allows the system to be able to connect to multiple databases across the globe, including at large trading houses like Coinbase. It then uses the authentication algorithm to be able to determine if a transaction is legitimate, if the parties involved are truly who they claim to be, and if the transaction should occur.
This enables users to create a unique digital identity that can be used for many different trading houses or other currency transaction systems. One person could have several identities in the digital currency world, yet only need one login to be able to monitor and use their different accounts.
Now, CBSG is making it so that users are able to encrypt their identity and verify that the transactions are legitimate before they are processed. This could help to revolutionize the digital world and give those who are skeptical of digital currencies greater confidence to get involved.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.