January 15, 2019

BSV-Powered Passports – Visions for Bitcoin from Dr Craig S Wright

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nChain’s Chief Scientist Dr Craig S Wright has continued with his weekly series on his Medium account, revealing new applications and uses for Bitcoin (possible exclusively on Bitcoin SV, because they use nChain intellectual property).  In the powerful series, Wright shares his ideas about and expertise on new ground-breaking applications and services—made possible on the Bitcoin SV blockchain.

Wright’s second entry in the series is entitled “Smart-card-based mobile wallets,” and focuses on the use of electronic cards (“smart cards”) to facilitate secure, feasible, yet user-friendly system authentication through a Bitcoin (SV) wallet. The solution is an enhanced application of nChain’s patent innovation for “Security through a Personal Device and Determined Common Secret,” which through the use of a biometric (think fingerprints) smart card allows for greater ease of use and security in passports / personal identification cards, communication channels, payments, or file encryption.

Businesses and institutions offering identification services can save costs by gaining in reliability, security, and speed through several aspects of the innovation:

  1. Security: New key pairs are formed for every transaction (and thereby access), which form a common secret that is broken up and collectively stored amongst a smartphone, a smart card, and the BSV blockchain—ensuring a security breach of one part (say losing and giving unauthorised access to the smart card) does not allow faking identification or grant access to a fund or file.

Because mere public parts of the common secret are exchanged, communication channels are kept in check, as they are not exploitable in a security breach.

At the same time, the smart card need not be the “all-or-nothing” ticket of entry; a master key can be distributed as a backup in a safe—where knowledge of such existence is kept amongst close friends or family. For additional security, the release of funds is directed towards a new wallet that an attacker is equally unlikely to have access to.

  1. Authenticity of devices and their access is ensured through digital-signature verification at every exchange of information. “Identity keys” allow backups and repeated use of the same card as the identity key is never exposed in a Bitcoin transaction. For the same reason, the system is always in (literally) direct hands of the user—maintaining the user’s control and privacy—where wrongdoings by authorities would have to be transparently justified—encouraging honest government proceedings.

Channel authentication such as for VPN servers also forms a primary use case for military calls, for example, where the “true” identity is of severe importance.

File encryption is another application, which Wright more specifically covered in his previous entry here.

  1. Ease of use: A new key pair for every point of access exceeds security measurements of resetting one’s password or passphrase after every use, yet is formed at such convenience where it does not require additional action or awareness from the user.

Biometrics, such as fingerprints, enhance security measurements which are unique to the user’s identity.

  1. Authorised access can be personalised based on individual spending and identification behaviour and risks, similar to how contactless NFC payments allow payments up to a limit of around $20. In other words, simple access to the London Underground may not require fingerprint authentication, but buying a car or a flight ticket may (instead of providing clumsy credit-card numbers).
  1. Speed and reliability: Current standards such as facial recognition for passport controls suffer from slow confirmations, and are dependent on the security measurements of the authority’s private infrastructure; infrastructure exceeding in cost and lacking in security and reliability, when compared to a secure public blockchain such as Bitcoin SV. And for the user, smart cards mean: when arriving at the airport, no more waiting in the queue.

Such new possibilities are becoming feasible because of the efficient and secure database that Bitcoin SV provides; and the integrated use of BSV transactions allows direct and efficient monetisation. The benefits are reflected in substantial cost savings, yet offer greater reliability and ease of use.

The technology can be implemented in a smart card, but also a smart watch, or even as a direct integration into one’s passport.

Implement the new BSV-powered identification system (the “BSV Pass,” “bID,” or “bCard”—you name it), and follow more exciting new applications and solutions by reading Craig Wright’s entry here.