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Bank of America Files Three New Blockchain Patents

· August 4, 2017 · 5:45 pm

Bank of America has filed three new blockchain-related patents geared towards data authentication and identity verification. The new patents are the latest in a growing number of blockchain patents filed by the financial services giant.


Creating Innovation With Blockchain

Creating Innovation With Blockchain

Financial services company Bank of America has submitted three new blockchain patents that focus primarily on authenticating information as well as those who handle it.

According to the official website of the United States Patent and Trademark Office (USTPO), one of the patents focuses on the conversion of non-secure “instruments” through a validation process into “transaction confirmation outputs”.  The document explains:

The blockchain recordation component receives a plurality of transaction records for each of a plurality of transactions (…), and when the transaction amount is available, it cryptographically records the transaction in a blockchain comprising a plurality of hashes of transaction records

Essentially the patent would allow Bank of America to authenticate user and transaction information through a blockchain system.

The second patent utilizes a distributed ledger system that monitors and verifies user identities on a network. In the patent documents, it is described as following:

[the system] integrates stored information, real time information and real-time information/data/image(s) from an object/array of objects (Internet of Things (IoT))

The last patent is centered around a system that monitors changes in user history at a specific timeline and creates a “map” of the user and his history. The patents suggest that Bank of America is going to heavily invest in Bitcoin and blockchain technology.

Bank Of America and Blockchain Technology

Bank Of America and Blockchain Technology

This isn’t the first time that the famous finance corporation has shown its intention to innovate with blockchain technology. According to an article by CNBC on January 28, 2016, Bank of America decided to get ahead in the innovation ‘game’ and filed 15 different blockchain-related patents.

It is worth noting that the majority of these innovative patents are focused on user and transaction verification through blockchain technology, which could greatly reduce transactions costs and drastically cut transaction times for customers.

Catherine Bessant, the chief operations and technology officer at Bank of America, explained the company’s interest in blockchain technology:

Blockchain’s very intriguing and for us it’s a balance between not wanting to be Neanderthal but not wanting to put something out in a commercial application where the commercial application is still very unclear as a technologist, the technology is fascinating. […] And we have tried to stay on the forefront, I think we have somewhere around 15 patents, most people would be surprised at Bank of America with patents in the blockchain or cryptocurrency space. (It’s) very important in the intellectual property world to reserve our spot even before we know what the commercial application might be.

Through its rapid movements, Bank Of America is clearly trying to win the innovation race with the help of blockchain technology. We are looking forward to seeing how other financial institutions will respond to this.

What are your thoughts on these patents? Do you think that Bank of America will be able to win the innovation race? Let us know in the comments below!


Images courtesy of Pexels, Reuters/Shannon Stapleton, iStockPhoto

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Fidelity Drops Long Time Partners to Bring in Bitcoin Competitors

Source: bitcoin

Fidelity

Financial services firm Fidelity Investments has dropped two of its long time partners during a process to integrate financial services that provide direct competition to bitcoin.

Also read: More Signs of Trouble in Asia: Barclays to Cut Investment Banking Jobs

Fidelity Moves into the FinTech Age With New Partnership

Fidelity is ending its partnership with credit card company American Express and the Bank of America Corporation, “a 12-year partnership that has generated billions of dollars in fees,” according to Reuters. This is another blow in a series of setbacks for American Express, which recently lost its partnership with Costco Wholesale Corporation. According to Reuters, American Express reported that the loss of the Costco partnership would hurt the credit card company’s profits for two years. Now, losing its deal with Fidelity, American Express’ future looks even more bleak. However, an American Express sokesperson claimed that Fidelity accounted for less than 1 percent of billings, hinting that the loss might not be so devastating. Furthermore, a spokesperson from Bank of America said that the termination of the partnership was a mutual decision.

In place of American Express and Bank of America, Fidelity will be teaming up with US Bancorp and Visa Inc. This new partnership will launch the Fidelity Rewards Visa Signature Card and the Fidelity Card. With these programs, users can earn unlimited 2 percent cash back with no annual fees or caps when directing their rewards into eligible Fidelity accounts.

This partnership will also produce credit cards with chip security technology, which will provide users with access to digital payment methods such as Apple Pay, Samsung Pay and Android Pay. This move brings Fidelity in direct competition with bitcoin, which specializes in anonymous, online payments with low fees. Additionally, Samsung recently announced that it will expand its Samsung Pay to online shopping in 2016. Fidelity’s new partnership will extend Samsung’s digital wallet expansion to an even broader audience, further stiffening the competition against bitcoin.

Should Bitcoiners be Worried?

Bitcoin will see new competition in 2016, but it is unclear whether or not these traditional finance companies will manage to push bitcoin out of the digital payments industry. The bitcoin community is working to solve pressing issues with the digital currency in order to make it a more efficient and easier to use currency. Core developers are currently deliberating over the best course of action for achieving long-term scalability, which will allow the Bitcoin network to process transactions on a level comparable to Visa and other major payment networks. Bitcoin’s block reward will also undergo a halving this year, which many believe will cause the bitcoin price to soar. If this proves to be the case, then bitcoin will receive a boost that should draw investors and entrepreneurs into the bitcoin space, further accelerating growth and development.

What do you think about Fidelity’s new partnership? Let us know in the comments below!


Images courtesy of the Liberty Science Center, American Express

The post Fidelity Drops Long Time Partners to Bring in Bitcoin Competitors appeared first on Bitcoinist.net.

Fidelity Drops Long Time Partners to Bring in Bitcoin Competitors

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