The Largest Bank In The World Is Looking To Use Blockchain Technology
If during 2017 the blockchain technology became mainstream for the first time and it improved the way that transactions are being made, it looks like 2018 will be when the traditional industry will finally understand the potential of this new technology and how to use it to make business more efficiently.
Recently, the Industrial and Commercial Bank of China (ICBC), which is one of the major state-owned banks in China and the largest bank in whole world by total assets, has announced to the media that it is looking to file a patent for the creation of a blockchain system that can be used in the exchange of financial assets.
The Patent Filed By The Industrial And Commercial Bank Of China
According to the bank’s patent, which was filed at the beginning of the year, in January, but only revealed last week, this new system envisions a platform in which all the institutions that participate in the ecosystem will function as nodes to create a distributed ledger network.
The system will be based on smart contracts. Whenever a user from one of the institutions in the ecosystem begins a transaction request, a smart contract will be triggered automatically and every node of the network will have to validate the transactions before it is finished. The nodes will use the information provided, which includes the balance of the sender’s account, name, transaction amount and more.
Once the network has received sufficient validations from the nodes and consensus have been reached, the transactions would be considered complete. The goal, according to the document, is to create a system in which the middlemen is eliminated and there is improved liquidity for the financial assets.
The ICBC Talks About The New Patent For Blockchain Technology
The bank has stated that the current system used by the bank is slow when compared to the one of the patent and that is it is too costly, especially when sending interbank and cross-border transactions.
Because it is built around a centralized credibility system, the current system is not as efficient, stable, flexible and cheap as the new one, which can easily be made by using the distributed ledger technology to help the bank to reach the demands of the market and innovate.
According to the China State Intellectual Property Office, this is the latest filling of the bank and it seeks to patent a blockchain system that can be used to verify information. In case you are interested in seeing the patent by yourself, you can see it here. It is written in Chinese, though.