Bank Of America Will Tap Blockchain To Develop A Crypto Storage System

The second largest bank within the US, Bank of America (BofA) has recently applied for another blockchain patent that will allow it to develop a secure crypto storage system. The news came from a patent document that was published by the US Patent and Trademarks Office (USPTO) on August 23rd.

Named “Block Chain Encryption Tags”, the patent describes a system of recording and storing crypto transactions that are handled by enterprises. In a nutshell, the invention is based on a system of data security for blockchain networks by implementing proper encryption and linking data units to the blocks of a certain blockchain.

The North Carolina-based bank has enriched the patent with a system that includes a device with a processor that first receives a set of data elements – to later acquire an encryption key before encrypting the elements within the first block on a blockchain.

The encryption key is then combined with the encrypted element map – allowing the creation and encryption of the “creator tag” which is embedded and published within the first block of the blockchain.

So far, the Bank of America has filed more than 50 blockchain-based patents, putting its name among the largest holders of blockchain-related patents and becoming the leader in this category, even beating the popular tech giant and ‘patent-hunter’ IBM.

However, the bank is still skeptical when it comes to cryptocurrencies, despite acquiring patents on the development of a digital currency exchange system in December 2017. Earlier this year, however, the bank admitted to the regulators that it may not be able to compete with the growing use of cryptocurrency and that this inability may harm their business.