- August 28, 2018
- Category: Bitcoin, Business, Cryptocurrency
While Wall Street might still be apprehensive about how useful cryptocurrency will be, it seems more banks are now welcoming the idea of using blockchain for its activities. Ripple, for one, has strung across a string of partnerships with some leading banks across the world in the past one year. And now, banks like Bank of America are betting on blockchain by its own.
Bank of America’s Gamble on Cryptocurrency
The Bank of America is one of the largest banks in the world. It’s why this piece of news is huge for cryptocurrency enthusiasts. It shows that digital currency is being accepted by more and more people who are willing to experiment with different cryptocurrencies.
Before this, major corporations like IBM and Wells Fargo have also applied for patents, many successfully.
Bank of America is finally ready to leave its mark in the world of digital currencies. They filed their patent back in April. It is called “Block Chain Encryption Tags,” and it wants to present a system which will help manage blockchains better.
The system will first identify the data values which have been entered and create a block. This will help the system to create a “creator tag” for each dataset so that it can assign them into separate blockchains based on the processing.
According to the patent, the primary function of the application would be to record and store any kind of digital transactions together.
Large enterprises and businesses will be able to use the technology to make handling digital currencies easier. The data security mechanism that will make the system much secure while the blockchain network will help link all encrypted data units safely.
The Aim: Encrypting Data Better
Through the patent, Bank of America wants to create a hardware processor. The processor, in turn, will be responsible for encryption of all data before they are validated on a block. Most other blockchain patents wanted to build a sophisticated software which left the hardware area rather deficient.
The system introduced by the Bank is being called a “reproduced version” of a patent that was filed by James Ronca back in the year 2014. It was called “Cryptocurrency Online Vault Storage System” then.
Through this patent, the Bank of America has acknowledged the rising importance of cryptocurrencies. It predicts that major companies and corporations might soon wish to stock up on cryptocurrencies as a business move. When that situation arises, banks would find it tricky to safeguard individual wallets. The patent mechanism created by the bank will allow them to store them together safely.