Yesterday, LG’s software subsidiary, LG CNS, unveiled a facial recognition service that combines AI and blockchain to make payments in digital currencies. Called the ‘face recognition community currency’, the solution is being trialed at LG headquarters for entry and at a restaurant counter inside the building.
LGhas installed facial recognition devices that check the identity ofemployees and then automatically access the blockchain-basedcommunity currency. The solution is hosted on the cloud, andemployees can use the service to make contactless payments at therestaurant.
Thiscould be beneficial during the current COVID-19 pandemic as users canavoid touchinga smart card or downloading a mobile app for scanning QR codes. Thegoal is to reduce contact with machines at the time of payment.
LGhas been using AI-based facial recognition for entry into its headoffice sincethe beginning of this year. It later combined the blockchain-basedpayments system and is running the pilot at a cafeteria counter. LGplans to expand the use of facial recognition payment systems forother stores and service areas.
Theelectronics giant is running another pilot for an unmannedconvenience store that recognizes products and enables payment.However, it was not clear if blockchain is being used here.
“Asblockchain-based community currency meets AI, it is expected to beused by a lot more people. The state will use blockchain morewidely,” said Lee Jun-won, director of LG CNS Solution BusinessDevelopment.
In 2018, LG launched its in-house blockchain Monachain for authentication, digital currency, and supply chain management. At the time, the company said that it planned to use Monachain to enable money transfer and payments using a digital identity. Monachain is based on Hyperledger Fabric.
South Korea is one of the leaders in the digital identity space, and LG has participated in multiple initiatives. LG CNS is a member of the Decentralized Identity (DID) Alliance Korea, which is working on developing a standardized and interoperable framework for verifying identities. Another LG subsidiary, LG U+ is part of the Initial DID Association.
Previously,LG worked with Korea Minting, Security Printing and ID Card OperatingCorporation (KOMSCO)to issue community currencies for use on campus or for localgovernment services.
Separately, it used the blockchain platform to develop the Magok Community Currency Platform for KB Kookmin Bank.
Meanwhile, LG is working on a food traceability service for South Korean schools in collaboration with local IT company SayIT.
