Mastercard has applied for a patent for an innovative system designed to combat ticket scalping using blockchain technology.
The proposed system records transactions within a blockchain ledger, noting both product identifiers and consumer identification data. If a user is suspected of scalping tickets, the system calculates a “suspicion score” based on current and historical transactions. If this score exceeds a certain limit, the system can automatically decline the transaction.
This approach is unique because it doesn’t rely on captcha technology, which doesn’t stop humans from purchasing excess tickets for resale. Instead, Mastercard’s system can track scalping across multiple merchants, identifying potentially fraudulent activity that might otherwise go unnoticed.
The system could potentially disrupt established ticketing companies like Ticketmaster by offering a more effective solution to ticket scalping. The use of blockchain could also enable the tracking of user behavior, the integration of rewards for ticket holders, and even the provision of resale profits to merchants.
Despite the potential benefits of blockchain technology in ticketing, its adoption has been limited due to its complexity and lack of user-friendliness. However, Mastercard’s widespread use could help overcome these challenges. This patent application is a continuation of Mastercard’s involvement with blockchain, which includes efforts to convert digital assets into cash and plans to enable merchants to receive and settle digital asset transactions.