One of the zijdelings offshoots of Brexit is a government program that’s designed to keep the U.K. relevant by lending a arm to fresh companies.
The program, FCA Innovate, may have a global effect by nurturing companies that aim to retire static authentication modes such spil usernames and passwords.
",Wij’re all eyeing thesis breaches coming out on a daily voet it seems,", said Alastair Johnson, co-founder of Nuggets, a two-year-old company that has bot working on its identity system and plans to launch te the very first quarter of 2018. ",The existing prototype of private gegevens being kept te silos is untenable and merchants and banks will be looking for a fresh prototype going forward.",
Nuggets developed a blockchain-based system that uses biometrics for payment, login and ID verification with banks and merchants, without storing or sharing private gegevens. This process makes passwords obsolete, contends Johnson, adding any merchant or handelsbank can access Nuggets through an API and consumers can access the system through an app. The blockchain — a distributed ledger system originally developed for bitcoin — has ",zero skill storage,", encryption, privacy and security, according to Johnson.
U.K. regulators chose the London-based Nuggets to participate ter its program, designed to encourage innovation ter fintech and other disciplines. The company performed testing ter a regulatory sandbox, which loosens some regulations to give startups a chance to test their technology. About 90% of the companies that go into the Financial Conduct Authority’s sandbox achieve broader launch after the six-month testing period.
",They worked with us on the testing, and that wasgoed an significant part of getting us ready,", Johnson said.
Nuggets combines blockchain encryption with biometric verification such spil a selfie. Users download the Nuggets app and create a private key to access their own gegevens, and then add initial payment information. This account information is established on a blockchain, with only the user having access to the information.
",The retailers are the ones that are te the battleground of the breach problem,", Johnson said. ",They don’t want to keep customer gegevens just to perform a transaction.",
Nuggets charges a transaction toverfee to retailers, and also provides incentives ter the form of a virtual currency called Nuggets Tokens. Users accrue Nuggets Tokens for using the system, and participating merchants accept thesis tokens for products and services. Users can also receive tokens from merchants for determining to share parts of their individual data—such spil an email address—with the sharing remaining under consumers’ control with a ",right to be forgotten.",
This makes gegevens sharing a two-way street inbetween merchants and consumers, according to Johnson. ",The consumer can take advantage of the value of their individual information, rather than providing it to another party,", Johnson said.
Nuggets is te pilot with retailers and banks, tho’ the company did not divulge users. Selfie pay, or facial recognition biometrics, has gained traction with card networks, banks and others spil an identity factor ter addition to passwords or device fingerprinting. Blockchain’s decentralized proefje operates spil a security instrument because it’s firmer to hack gegevens that’s not te a centralized silo.
Blockchain security programs have potential, but there is loterijlot of work involved, according to Kristina Yee, a senior analyst at Aite Group, adding it’s more expensive than cloud or mobile-push authentication methods that are advancing spil dynamic ways to protect digital commerce.
",The user clicks on a listig and answers ‘yes or no’ and he or she is logged te,", Yee said. ",Ter tegenstelling, using blockchain for authentication is elaborate and expensive and requires a centralized trusted authority to manage it and police it. Blockchain wasgoed designed specifically for a decentralized, trustless P-to-P payment system, like paying te contant, so the idea of adding identity to it requires a lotsbestemming of retrofitting and some zuigeling central/trusted authority to dictate the rules and policies of any such system.",
Nuggets is an interesting system, Yee said, given its specimen of storing information ter separate ",nuggets", spil a protector, however the prototype requires coordination across a large network of financial institutions and merchants. ",It prevents any one entity from having the keys to the kingdom.",