The Chinese bank Industrial and Commercial Bank of China (ICBC) - one of the largest commercial banks in China owned by the country's authorities and the world's largest in terms of total assets - is trying to patent a blockchain system for the exchange of financial assets. This is reported by CoinDesk.
According to the patent application filed by the bank, this system is a platform whose members can function as nodes and form a distributed network.
When a user from one institution initiates a transaction request, a smart contract is launched, which forces each node to check the transaction based on the data provided - including the balance of the sender's account, its name and the amount of the transaction. The transaction will be considered complete when the network receives messages about the successful passing of the verification from each participating node, and therefore - overcomes the predetermined threshold of consensus.
The essence of this technology, according to the application, is to eliminate the intermediaries available in the existing system and improve the liquidity of financial assets.
In the patent application, ICBC claims that the research in this direction began because of the problems that arise in the existing system in the implementation of interbank and cross-border transactions - whether it is ordinary payments or the transfer of financial instruments like precious metals or futures.
The traditional transaction chain that is built around a centralized credibility system incurs problems like the high cost, low efficiency, low stability, as well as inflexibility. This impedes the bank's launch-to-market process to meet the rapidly growing demand for innovative financial products.
ICBC is filing a patent application for blockchain not the first time. Previously, the bank was trying to patent a blockchain that can verify the data of users using a distributed network.