The Bank of America (BoA) is certainly no stranger to blockchain related patents. So far, it currently has just under 50 live blockchain related patents, which is more than tech giant IBM and even the patent hungry Winklevoss twins. This time around, BoA’s patent application is titled “Blockchain Encryption Tags” and it outlines a new encryption layer that makes storage safer. It also makes it easier to access data using special tags in blocks.
BoA isn’t the only financial institution applying for blockchain patents, back in July American Express won a patent for a new Proof-of-Payment system, which will revolutionize the way its customers interact with the world. Financial institutions are eager to adopt blockchain technology for fear of being left behind, so it’s great to see huge names such as BoA and American Express make such progress.
Potential Uses for Blockchain Encryption Tags
This new tagging system that BoA is seeking to implement has a wide range of uses. The most obvious use, however, is by giving every customer account a special tag, so when a bank service needs to access the account, it can be done with relative ease – especially when the blockchain becomes rather large. It could work similarly to systems now, every account has a reference number only the bank uses, this would be replaced by a special tag that would then give the exact location within the customer’s account information – somewhat akin to a bookmark. It would enable BoA to speed up a number of processes, making its blockchain systems more efficient.
Blockchain Being Used to Make Banking Better
Blockchain and Distributed Ledger Technology (DLT) is being implemented by banks and financial institutions around the globe. What it’s working to do is help speed up payments and make systems more secure.
In Australia, the Commonwealth Bank has teamed up with the World Bank to create the world’s first 100% blockchain bond. Everything from deposit of funds to fund distribution is handled using only blockchain technology. Elsewhere American Express – and a number of leading banks – are teaming up with Ripple and its xRapid platform in order to speed up cross-border payments and make them a fraction of the previous cost.
Sadly, not all companies testing the platform were impressed. Western Union slammed the platform as expensive and cumbersome during its trail, but Ripple hit back saying that it didn’t process enough transactions to feel the full benefit. Ripple has found itself trying to stave off its critics for quite some time now, most recently after announcing its keynote speaker at its Swell conference. While Ripple’s xRapid platform has been adopted by a number of banks, the crypto world isn’t yet sold on the cryptocurrency.
US Slow to Adopt Blockchain and Cryptos
BoA has been quick to adopt blockchain technology, yet other companies and institutions in America are living in fear of the technology. Many have been slow to adopt it and the SEC appears to be standing directly against a BTC ETF. In New York state, governors have come up with a special BitLicense that companies must hold in order to deal with citizens of the state. So far, only 10 companies hold this prestigious license, making it a seal of excellence for the blockchain and crypto industry in New York.
Bank of America Continues to Break New Ground
BoA is pressing ahead to become a leading name in the blockchain space, so as time progresses we expect to apply for other licenses – such as the BitLicense – in order to expand its blockchain and crypto offering. It could even turn its sights towards storing cryptos for customers with a new custodial service. The future for BoA looks promising, especially given the sheer number of blockchain patents it currently holds.