One Of The World’s Largest Banks Obtains Blockchain Based Patent
The Industrial and Commercial Bank of China (ICBC) – One of China’s state owned “Big Four” Commercial Banks – is one of the largest banks in the world by total assets and has recently obtained a patent to build a blockchain based, asset trading platform. ICBC filed the patent in January of 2018, however the patent was first publicly published on July 6.
The platform itself aims to mediate financial asset transactions through smart contracts which are audited and verified by all nodes on the platform. Each node of the main network will represent an individual financial institution who will be trading on the platform. According to the patent, these nodes will be responsible for verifying information like “the ID of the buyer and seller, the commodity ID, the user balance, the transaction amount, the number of transactions, and one or several of the transaction times.”
The platform aims to leverage blockchain technology to help improve the overall efficiency of the current system by cutting out unnecessary middlemen and increasing cross-border settlement speeds. ICBC also hopes that the platform can improve liquidity with its overall governance and settlement system which holds a series of checks and balances among its nodes.
The patent outline specifically points out the downfalls of the current centralized system by expressing that the largest problems originate from “high transaction cost, low execution efficiency, poor system reliability and low product flexibility, which have not satisfied the need for rapid circulation of financial products.”
This blockchain based patent filing is not the first of its kind from ICBC. In late May of 2018, an initial blockchain patent from ICBC went public which outlined a platform focused on authenticating digital certificates and securely storing user data through a distributed network.
There is no set launch date for either platform as of today but ICBC is clearly leading the race in implementing blockchain technology in the global banking sector.