ICBC Looking Towards Adopting Blockchain Technology
ICBC (the Industrial and Commercial Bank of China ) which is currently one of the world’s largest bank is looking towards adopting blockchain Technology to speed up the processing time of transactions.
The patent was published on 6th July and it was filled earlier this year. As described in the document, the bank plans to create a platform by which the institutions involved will be able to form a distributed chain of nodes.
According to the patent, once an institution participant requests a transaction, the system which has built-in smart contracts will automatically check and approve the transaction, collecting individually from the customer the required data such as account balance, name and transfer amount. The transaction is completed when it receives the required number of approvals from the participating nodes. Thresholds will be set by the bank.
The main purpose of this project will be to eliminate the intermediary parts and also to improve the liquidity of financial assets. As explained in the document that interest in such a platform has arisen as a result of the slow and expensive system in which interbank and cross-border transactions are processed.
As stated in the filling,
“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”
This is the latest bank’s filling linked to blockchain technology, as reported by the China State Intellectual Property Office.
According to Chinese media, the financial institution is also looking to form a blockchain-based platform to validate user information via a distributed protocol.
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