Bank of America Now Holds Patent for Cryptocurrency Exchange System

The cryptocurrency market is growing day-by-day, and this exponential growth has attracted the attention of the world’s largest banks too. Many mainstream businesses are trying to develop new technologies to dominate the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term economy.

Bank of America (NYSE:BAC), the second largest bank in the United States by assets, is considering providing its enterprise clients with the service of the cryptocurrency exchange.

Recently the U.S. Patent and Trademark Office has awarded a patent to the Bank of America, which the bank filled in the mid-2014. According to the outline of the patent, it is a cryptocurrency exchange system which will allow the conversion of one digital currency to another.

As described by the patent, the exchange system will have three parts, one “customer account” and two “float accounts.” As the name goes, the customer will hold the “customer account” and both the “float accounts” will be owned by the businesses running the system.

The customer will be able to store any cryptocurrency in the “customer account.” In case of any exchange request, the desired amount will be transferred from the “customer account” to the second account, which acts as a “float account.”

The other “float account” will contain the equivalent amount of the desired cryptocurrency to which the customer is converting his funds. The “float accounts” will basically act as a holding area. After the process is complete, the third “float account” will deposit the funds into the “customer account.”

The patent states: “Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to exchange currencies and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.”

The patent also mentions that the proposed service is exclusively for the bank’s enterprise clients. The system will also be able to predict the illicit transactions, and will automatically block such transactions. Based on the amount of cryptocurrencies involved in the transactions, the system will also calculate a risk score.

The bank had been working on the blockchain technology for years. In July this year, Bank of America issued a call for hiring blockchain professionals for developing a blockchain based ‘Real-Time’ card settlement system.