JCB and Keychain introduce Blockchain-based Micropayment Solution for IoT

JCB and Keychain have built infrastructure to process credit-based micropayments among IoT devices.

The new solution leverages blockchain and distributed ledger-based payment infrastructure to reduce the risks of IoT micropayments.

Established in 1961, JCB is a global payment brand from Japan. Keychain is the decentralized authentication blockchain platform for finance, IoT, and enterprises. In December 2019, JCB and Keychain formed a strategic partnership to leverage blockchain in the payment area. 

The announcement noted, "JCB and Keychain developed the solution based on digital identity, delegated transaction approval, and secure transaction archival (joint Japan patent pending #2021-00571)."

In reference to IoT ecosystem, the announcement further noted, "An infrastructure needs to handle vast cybersecurity and operational risks related to identity fraud, hacking, privacy and denial of service."

The latest solution from JCB and Keychain brings direct human-to-machine and machine-to-machine payments at scale without the confines of credit cards.

The 5G technology has significantly improved the bandwidth and would be a key enablers for IoT ecosystem. As IoT devices scale, there would be a requirement to process payments among the devices. The solution from JCB and Keychain claims to scale machine-to-machine infrastructure to tens of billions of IoT devices.

The blockchain powered solution boosts integrated digital identity for IoT devices, delegated transaction approval at the network's edge location in real-time and secure transaction record archival for digital identity to user mappings, notes the announcement.