Microsoft Corp. hopes to beef up online privacy with the acquisition of the U-Prove technology, the company announced on Thursday.

U-Prove was developed by Stefan Brands at Credentica Inc. to allow Internet users to disclose only the minimum amount of personal information when conducting electronic transactions as a way to reduce the likelihood of privacy violations. U-Prove also employs cryptography to prevent systems from pulling together information about users from various sources.

These are really interesting solutions, especially with the integration/combination of Windows Cardspace!