Bank of America Makes Patent Application For Encrypted Crypto System
Bank of America (BofA), is in the process of acquiring a patent that will allow it to create a crypto storage system according to a U.S. Patent and Trademarks Office (USPTO) document. This is not the first blockchain patent that the second largest American bank has applied for. The new patent will allow the bank to record and store transactions, thereby allowing it to increase the security of transactions. Transactions made by enterprises will be affected by this system which will monitor the blockchain networks and encrypt data. The scope of the system big as not just crypto transactions will be monitored but also those that are just crypto-related.
The contents of the patent document show that the system will focus on encryption and linkage of data units to the blockchain. The system is made up of a device which can receive blocks of data and apply encryption keys on them. After the encryption, the blocks are then reassigned to the initial block of a specific blockchain. In addition, the device creates another key which captures the data of both the encrypted block and the element map as a whole. This information is also added to the first block of the blockchain.
The latest bitcoin news indicates that the recent happenings are part of a series of steps that have been in the work for a while now. There have been many steps taken by financial institutions to increase control and security on the trading platform of every kind ever since blockchain gained popularity. The patent document released shows that in 2014, an application was filed by James G. Ronca and this is the document that was reproduced in the recent application.
BofA has for a long time sought to make blockchain technology an integral part of its operations. It is one of the companies that have been actively involved with the infrastructure since its inception. Even though it is not a tech company, the strides that BofA has made are huge. The company is reportedly the largest holder of patents having filed for numerous patents over the course of recent years. With such a huge number of patents, the company beats even tech firms like IBM to the number of patents.
BofA’s commitment to innovation is evident. This does not mean that it is not skeptical about technology though. Just like other institutions in the financial industry, the bank has been critical of cryptocurrencies. The acquisition of a patent that allows it to develop a competing cryptocurrency exchange system has not prevented it from reprimanding digital currencies. Earlier on during the year, the company reemphasized that cryptocurrencies were troubling – hence why it would not allow its customers to acquire the digital coin with its credit cards.
Recent statements from the company have nevertheless indicated that it is cognizant of the cryptocurrency realities. The bank recently stated that it was in a position where it considered itself incapable of competing with cryptos in future. This is especially considering what the bank termed as continued growth of cryptocurrencies. While making the statement, the banks said that its products were not in tune with the evolving digital market.