Like many other financial institutions, Bank of America (BoA) is not immune to blockchain. In fact, one of the largest banks in the U.S. has been filing for related patents like there’s no tomorrow.
The latest patent that caught our eyes envisions a blockchain-based system that aims to improve the tracking of file transfer processing in real time. Said system would integrate blockchain with communications and memory devices to facilitate the data processing process.
Don’t get this wrong — Bank of America does not want to compete with the likes of Dropbox to offer a file storage service; rather, it wants to use blockchain to facilitate the transferring of large volumes of data while simultaneously tracking the data through the use of cryptographic keys.
In addition, the system would be able to handle both the actual data transfer itself, and the log of the cryptographic keys identifying each data packet along with its present processing stage. Such setup would “reduce transactional and informational complexities and transform the processing of electronic files and management of data contained within such files,” according to the patent filing.
Speaking of filings…
Bank of America has over 30 blockchain-related patents
Bank of America could be a financial institution with the largest number of blockchain-related patents. Since 2014, it has managed to secure over 30 different patents broadly related to decentralized computing and cryptocurrencies, more than half of which were filed in 2016.
Among them are patents that envision the use of distributed ledgers for peer-to-peer (P2P) payments, as well as those covering almost the entire cryptocurrency exchange and payment process, including transaction validation, risk detection, real-time conversion, and online and offline storage.
But the fact that it has secured that many patents doesn’t mean Bank of America will actually end-up implementing the technology described in all those filings. It, however, is working on something…
Bank of America and Microsoft working on a blockchain project
The two giants announced their collaboration in September 2016 aimed at developing and testing blockchain applications for trade finance.
Under the deal, the bank has worked together with Microsoft Treasury on the creation of a blockchain-based system that can speed up transactions between the bank and its partners.
Microsoft and BoA have hinted that they are testing how the system can facilitate the letter of credit process, but there are no signs when — or even whether — any commercial project will be released as a result of this collaboration. So waiting and seeing is pretty much all we can do at this stage.
Meanwhile, JP Morgan keeps making its blockchain-based, Quorum system better with the day, having recently added interbank support and Zcash privacy technology. So what’s Bank of America waiting for? Your guess is good as mine…