The number of blockchain patents filed by US banks has increased dramatically

Rage Comment : In war, food and grass are sent before troops move, and in commercial wars between European and American countries, patents often come first. Although Goldman Sachs, Citigroup, and Bank of America have been applying for patents related to blockchain last year, according to the data disclosed at Davos, Bank of America has applied for far more than the original 10 patents. In fact, Goldman Sachs has also applied for its own SETLcoin, and Citigroup has applied for Citicoin. They have done a lot of exploration in this regard. It must be admitted that it is still unknown whether blockchain technology can really play a huge role in the traditional financial industry, but in any case, we have seen the full efforts and determination of the traditional financial industry.

Translation: Prince Gong

Bank of America is trying to gain an advantage in the field of blockchain technology by continuously applying for patents related to this technology.

Blockchain is like a huge and decentralized digital currency ledger that records every transaction and information on the global trading network. Since each node has the same copy, the data cannot be tampered with.

Major financial institutions – including the Bank of England – have published a series of reports last year on the potential of this technology and have set up dedicated teams within their organisations to look at how to develop it.

However, Bank of America intends to go a step further by applying for patents for certain use cases of the technology. A spokesperson told reporters on Wednesday that the bank has applied for 15 patents related to blockchain technology and is currently drafting another 25 patents to be submitted to the U.S. Patent and Trademark Office (USPTO) later this month.

Catherine Bessant

Catherine Bessant, head of Bank of America's office of operations and technology, told reporters at the Davos forum last week:

"Blockchain technology is very interesting, but we need to strike a balance. We don't want to sit around and wait until we become extinct Neanderthals, but we also don't want to put it into commercial applications right away. After all, the prospects for commercial applications of this technology are still not very clear, even though the technology is very attractive."

“We are trying to stay at the forefront of the industry. We already have 15 patents in this field. Many people may be surprised that Bank of America is seeking more patents in blockchain technology and digital currency. But we know that it is very important for us to reserve intellectual property before understanding its real commercial application prospects.”

In December last year, the US Patent and Trademark Office (USPTO) published 10 patents applied for by Bank of America. The USPTO usually publishes information 18 months after they apply for patents. But the latest information shows that the number of patents applied for and pending by Bank of America is obviously much higher.

The patents applied for by Bank of America include "Risk Detection System for Digital Currency", "Suspicious User Alert System", etc. These patents have not yet been granted. It may take some time for blockchain technology to become mainstream in the banking industry. But at present, many banks are actively exploring this field.

Blockchain technology is essential in sharing databases. Blockchain technology allows people to exchange information and virtual currencies such as Bitcoin, equity certificates, contracts, securities, etc. Through blockchain technology, cross-border consumption will become faster and cheaper. JPMorgan Chase and more than 40 other major banks recently reached a partnership with a blockchain startup R3 to study blockchain technology.

Last year, Goldman Sachs published a report saying blockchain technology could “change everything,” while banks from Barclays to UBS are discussing how it could be used in everything from remittances to contract forms.