Industrial and Commercial Bank of China (ICBC), one of the largest banks in the world, is looking to adopt blockchain technology to reduce transaction processing time.
The patent was submitted in January 2018 and was published on July 6. As described in this document, the bank plans to create a platform for related agencies to configure distributed node chains.
The transaction will be confirmed automatically
According to the patent, when an agency participant requests a transaction, the system with built-in Smart Contract automatically issues a transaction and collects essential data, such as account balances, names, and remittance amounts, to the customer individually. The transaction is completed when the participating nodes have the required number of approvals. The critical value is set by the bank.
The goal is to get rid of brokers.
The purpose of this project is to eliminate the intermediary sector and "improve the liquidity of financial assets". ICBC explained that interest in such platforms arose as a result of the slow and expensive system in which transactions between banks and borders were handled on paper.
"The traditional transaction chain built on a centralized credit system creates problems such as high cost, low efficiency, low reliability and low flexibility. This hinders the banks' market launch to meet the growing demand for innovative financial products," the document said.
This is the latest bank bond related to blockchain technology reported by China's National Intellectual Property Office. According to the Chinese media, financial institutions want to configure a blockchain-based platform to view user information through distributed protocols.