Bank of America Snowballs One Blockchain Patent After Another

The second largest bank in U.S. is on a blockchain patent roll. This time, it’s for a blockchain-based encrypted storage system to keep your crypto safe.

PATENT

The Bank of America (BofA) has filed another blockchain patent for developing a secure crypto storage system, as stated in a document published by the U.S. Patent and Trademarks Office (USPTO) on August 23.

Patent for Tomorrow’s Crypto

The patent entitled “Block Chain Encryption Tags” was published on the USPTO’s official website on Thursday. It details a system of recording and storing transactions involving cryptocurrencies made by enterprises. In other words, the invention allows BofA to develop a storage system for cryptocurrency online.

The application is a reproduced version of the “Cryptocurrency Online Vault Storage System,” the initial patent filed four years ago by BofA’s former eCommerce channel manager James G. Ronca.

The document describes what makes the idea unique. A North Carolina-based bank filed a patent document in April 2018 that proposed a device with a processor that receives a set of data elements first-hand. The device then obtains an encryption key used for encrypting the first data. It is then stored in the blockchain and the device bring about a key that’s mapped to the encrypted data stored in the blockchain.

The proposed device further merge the encryption key with the generated encrypted element map to make the “creator tag.”

In a nutshell, the system offers data security for blockchain networks by applying extra encryption technique and linking data units to a block inside the blockchain.

Blockchain Top Dog

The Bank of America has taken multiple steps for adopting blockchain technology recently. It has filed nearly 50 blockchain-based patents since June. BofA reportedly overpowered tech titan IBM as the largest holder of blockchain-related patents among all companies.

Ironically, even though BofA is now one of the top dog companies that fosters innovation in the blockchain sphere, the bank still has a skeptical stance towards cryptocurrencies. In May, it called crypto as “troubling” and asserted its decision to ban clients from purchasing crypto using their credit cards.

BofA Chief Operations and Technology Officer Cathy Bessant said:

“As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort, in fact [it’s] designed to be not transparent.”

However, despite their negative standpoint, the bank filed a patent at the USPTO that puts forward a digital currency exchange.

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