Alastair Johnson, CEO and founder of Nuggets, says blockchain-based biometric identity is key to the future of contactless delivery
Alastair Johnson, CEO of Nuggets, believes the future of contactless parcel delivery will rely on a biometric identity system built on blockchain. Nuggets has developed a system that allows consumers to store a biometric identity on a secure blockchain which last-mile carriers can then use to authorize deliveries.
The COVID-19 pandemic has driven strong demand for contactless delivery. However, the rise in unsigned deliveries has produced a sharp increase in chargebacks for merchants. Without an effective solution, e-commerce may face substantially higher costs as retailers absorb losses and adjust for more frequent chargebacks.
Blockchain makes biometric delivery confirmation practical
The need for a reliable contactless delivery confirmation system is increasingly urgent. Rather than relying on a photograph of the recipient or asking people to share personal data with delivery drivers, Nuggets built a solution that avoids passing sensitive personal information to carriers.
Nuggets uses blockchain to store an acceptable biometric identifier that a carrier can reference to authorize a parcel handover. When a last-mile carrier approaches the customer’s address, the customer receives a notification on their smartphone and can remotely authorize the delivery.
The platform is free for consumers and includes incentives for carriers and others who want to make parcel delivery more secure.
Johnson emphasizes the consumer benefits: the platform is free for users and provides incentives to carriers and partners who want to improve delivery security.
“The economic drivers are on the business side — chargebacks and failed deliveries. For consumers, it’s a matter of privacy and data control,” he said. With a securely stored digital identity, consumers no longer need passwords or security questions like the name of their mother’s first pet.
Secure, privacy-preserving solutions
Nuggets captures a consumer’s biometric identifier and anchors it to a blockchain, while using decentralized IPFS storage for the associated data.
The result is a zero-knowledge proof that only the customer can use. This architecture minimizes the risk of compromised information while enabling carriers to obtain biometric authorization for deliveries without accessing sensitive personal details.
“We provide the line of code the carrier needs to send a message to the consumer,” Johnson explained.
As people adapt to social and logistical changes brought on by the pandemic, platforms like Nuggets are likely to gain interest from consumers and parcel businesses seeking stronger, contactless authorization systems that protect privacy and reduce costly disputes.