Leading financial institutions in the world have recently been adopting blockchain technology to replace traditional processes little by little. For example, Ripple first became widely popular for its cross-border transfer capabilities, and exchanges are offering more services to address growing demands for crypto services. On this note, Bank of America is not one to get left behind.
According to its patent application last Thursday, Bank of America is looking to replace some of its data sharing systems using blockchain technology. Upon implementation, the result would be a more secure recording and authentication process for personal and business data. On top of that, it will allow a system that automatically logs IDs of people accessing it much like traditional surveillance systems.
The bank intends to use the blockchain to reduce the number of locations used to store users’ data by combining existing data storage platforms into a secure network.
In 2016 when the application was first filed, the document showed that internet use was increasing among individuals or service providers with the goal of sharing personal and business records. It also cited the risks of the existing model where it is easily prone to data corruption. This then prompted the bank to turn to a permissioned blockchain to seek a new model for a more efficient system.
"Embodiments of the invention utilize a private blockchain to store various types of records to be conveyed to the service providers. In this way, the individual or entity may securely store on the blockchain all records relevant to service providers, then provide the service providers with secured access to said records such that the providers may access only the specific records for which they are authorized, e.g. a healthcare provider may access only the healthcare records on the blockchain," the document notes.