The Toronto-Dominion (TD) Bank, a prominent banking institution in Canada, has filed a patent application to uses a public blockchain in the digital tracking of assets. Although it became public knowledge last week, the application was submitted in September 2016.
In the patent description, TD Bank states that the blockchain patent is for a tool to be used in keeping track of digital asses and has processor as well as a storage system. As per the abstract, the technology enables computers to create data blocks consisting of information concerning transactions involving sold assets, including their value in conventional currencies. The data blocks would then be made available to the public through a distributed ledger. Furthermore, the proposed system will support the incorporation of blockchain tokens.
The application further states that the platform will avail systems and means for the real-time drafting of transactions including the transfer of a digital asset tracked as a blockchain ledger. Regarding the support of cryptocurrencies, the patent explicitly says that a first party can initiate the transfer of digital assets, such as blockchain-based currencies. Every transactions will be availed to a central point for real-time drafting and validation.
On public blockchain, every individual member can verify and authorize transactions. Here, the applications the unique advantage of blockchain technology; the ability to distribute permissions over a network. This substantially reduces the possibility of data falsification. Moreover, the decentralized approach gives the system the upper hand over its centralized competitors, as several nodes within the network can verify the components of a single ledger, an aspect that makes blockchain more powerful.
As of now, TD Bank has remained mum on the patent, and nobody knows if they are still in pursuit of the application. Nonetheless, the presentation of a patent application by such an institutions is a significant pointer that the blockchain revolution is fast spreading into the traditional banking sector.
In a survey conducted by Thomas Reuters, data from the World Intellectual patent Organization showed that over 50% of 2017’s blockchain-related patent applications originated from China, with the United States closely following with 91 applications.