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LG using blockchain digital currency payments with AI facial recognition

LG CNS facial recognition

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. 

LG has installed facial recognition devices that check the identity of employees and then automatically access the blockchain-based community currency. The solution is hosted on the cloud, and employees can use the service to make contactless payments at the restaurant. 

This could be beneficial during the current COVID-19 pandemic as users can avoid touching a smart card or downloading a mobile app for scanning QR codes. The goal is to reduce contact with machines at the time of payment. 

LG has been using AI-based facial recognition for entry into its head office since the beginning of this year. It later combined the blockchain-based payments system and is running the pilot at a cafeteria counter. LG plans to expand the use of facial recognition payment systems for other stores and service areas. 

The electronics giant is running another pilot for an unmanned convenience store that recognizes products and enables payment. However, it was not clear if blockchain is being used here. 

“As blockchain-based community currency meets AI, it is expected to be used by a lot more people. The state will use blockchain more widely,” said Lee Jun-won, director of LG CNS Solution Business Development. 

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 Operating Corporation (KOMSCO) to issue community currencies for use on campus or for local government 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. 

Image Copyright: LG CNS