South Australian company A Backbone Computing Solution has developed a higher degree of security that allows people to safely shop online and pay bills over the internet without the need for passwords or additional encryption.
Co-Founder Stav Morris said the new system was tailored for the average consumer and would address the issues of data privacy, security and storage while reducing transaction time.
“The motivation here is to have a version of your operating database that can’t be edited retrospectively and logs every single transaction,” he said.
“Most common checkouts you have to write in your details, username password, then you go through your postal address, credit card details and we aim to eliminate the bulk of that.
“Once you establish the network it will remit transactions very quickly and it doesn’t really require a middleman. The function of the bank then becomes to manage the task and make sure people get paid from some account that has money in it – be it virtual, physical or some form of digital currency.”
The new system, which is designed to be used worldwide has been advertised as a “better than Blockchain” solution to online theft and credit card fraud.
Blockchains are a common form of hi-tech database that are used by banks globally.
They work as public ledgers of transactions with complete information of addresses and balances. They use the method of having information public to ensure transactions match up.
Personal information such as credit card details, health insurance details and sensitive documents would be entered into the A Backbone system to be used as verification for purchases.
All data logged into the A Backbone system would remain private and would not be able to be modified, edited or deleted. This would include private data and sensitive documents as well as monetary transaction information.
Morris said the system would mean merchants would only need a credit card number to process transactions, which could be verified through notifications approved following identification via fingerprint or facial recognition scans.
“The theme is non-ownership and this is how we distinguish ourselves a little bit from Blockchain technologies. The idea is to have authorisation and validation rather than authentication,” Morris said.
“It’s not just a transaction system, it’s an identity system. We can store sensitive information without people looking at it, browsing through it or trying to copy it.
“All your information like your credit card details, your private health care and gym membership will tag onto your identity. Then things like your home address, email, or phone number become gateways to your account.
“And with technology like 3D facial recognition and fingerprints being made available the account becomes as simple as picking up your phone and getting scanned.”
About 18 million people in 2014 were victims to identity theft in the United States with two-thirds of them reporting a direct financial loss.
The majority of victims were unaware of how offenders obtained their information and 45 per cent only discovered the incident after being contacted by the bank.
“All the rest of the information comes from our system. A notification through an email address or SMS will present you with an opportunity to make a reply such that people can’t make random actions against your account,” Morris said.
A Backbone aims to have a customer ready product on the market in the next six months.Jump to next article