Mastercard‘s Singapore-based subsidiary has filed a patent with the US Patent Office for using hardware devices that specifically mentions Iota’s (MIOTA) Tangle technology.
It has been reported that the patent claim, which published on August 20, proposes a pay-as-you-go system that uses a “transparent data storage system and aggregation.”
However, users must provide their credentials to gain access to a particular hardware device, the patent cites copiers and 3D printers as examples, and billed strictly for what they used.
According to the report, the proposed data storage systems could be based on a Tangle or a generic blockchain. The patent makes no mentions of the Iota network or its currency, as the system could also be used in private environments.
MasterCard filed a patent that explains how users can bypass credit card fees when paying for shared devices like 3D printers. https://t.co/2jwYbM6FeJ — Cointelegraph (@Cointelegraph) August 26, 2020
The patent claims that such a system would present an improvement over the traditional payment mechanisms commonly used for shared hardware devices. It argues that prepaid cards lock users into the system even if they may not know how much usage they will see, while full pay-per-use “often use attached machines that accept physical currency to operate.”
Also, the patent notes that these legacy systems may also limit the payment options available to users.
It has been analyzed that the stated benefits include a higher degree of transparency and trust in the system, the ability to monitor usage in real-time, and the elimination of fees associated with credit cards and other payment systems.
The patent nevertheless does not explain how users would pay for usage, merely focusing on the technical implementation of such a system.
Thus, given the need to record transactions in a distributed ledger, it is likely that some cryptocurrency-like system will be required, which may limit payment options for users as well.