A new proof-of-concept demonstration showcased last week by research organization CULedger suggests blockchain-like technology could soon wield significant power in verifying identities and clamping down on fraud at credit union call centers.

The prototype hinges on something called a distributed ledger, which is a database that is shared across a network and keeps list of interactions among the network's participants — credit unions, in this case. The records are synchronized and updated automatically. Commonly associated with bitcoin, where the technology is used to track the exchange of virtual currency, distributed ledgers are finding their way into other business uses — including call centers.

CULedger's technology, which it demonstrated at the National CEO Roundtable in Tucson, Arizona, last week, sends an authorization "challenge" to members when they dial participating call centers. The request goes to the member's device and requests authentication information, such as a fingerprint though a smartphone, for example, to validate the caller's identity. The whole thing can take less than a few seconds, according to CULedger, which is a "research-to-action" effort backed by industry partners. 

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