Bank of America has become the latest corporate giant to mobilise behind blockchain technology for use in their core business.
The banking conglomerate has announced it is in the preparatory stage of investigating a file processing system on the blockchain, which would allow for more accurate tracking and monitoring of file transfers in real time.
The system was detailed in two separate patent filings released by the US Patent and Trademark Office this week, which spelled out how the bank intends to use blockchain technology to improve its data processing capacity.
Specifically, the patents examined how memory devices and communications tools could be implemented alongside a blockchain protocol, to make for more efficient and effective processing of internal data.
According to the detail of their filings, the current processes for carrying out data transfer functions are cumbersome, costly, and resource intensive, with no mechanism for tracking progress across larger data transfers.
By relying on blockchain infrastructure to transfer volume data, Bank of America hypothesizes quicker and more secure data transfers. The system will also be identified and secured by cryptographic keys, which will be transmitted simultaneously through the blockchain interface.
According to the text of the filings, the system would reduce the overall complexity of electronic file transfer, while allowing the bank to more effectively manage bulk data transfers.
“The present invention is directed to providing a novel technical solution that reduces transactional and informational complexities and transforms the processing of electronic files and management of data contained within such files.”
While the patents represent a new direction for Bank of America and its developments in blockchain, it is far from the bank’s first dalliance with the technology.
Since 2014, Bank of America has been active in filing a number of patents for the technology, which now stands at more than 20 as of August of this year, making it one of the most active proponents of the technology in the banking sector to date.
With the delay in patent applications being published, there may well be several more applications in the pipeline. Either way, it is clear Bank of America recognises the benefits of utilising distributed ledger technology and the blockchain across a range of their core internal functions.