One of the biggest banks in the United States of America, Bank of America (BoA) is so worried about security issues related to the crypto world that it has decided to take an active step.
Based in North Carolina, Bank of America has managed to secure a patent that will allow it to detect risks associated with cryptocurrencies. In a recent filing that was placed with the United States Patent and Trademark Office (USPTO), the patent was given to BoA. It is based on a risk detection system that is particularly targeted at crypto assets. By using the system, there is a risk score attached to online crypto trading that is carried out between a client and a third party.
The statement said that as more progress is recorded in the technology sector, there has been an upsurge in transactions involving cryptocurrencies. Thus, there should be a need to assess the risk involved in these transactions. As a result of this patent, it is the aim of Bank of America to ensure there is no slide in the level of transparency and reliability of transactions to buy cryptocurrencies. The system also ensures that the risk involved in the transactions is reduced to the barest minimum.
The filing revealed that the system has an inner processing core that can get requests from clients. Then it uses such requests to carry out cryptocurrency transactions with a third party. The processing core can do more than just carry out transactions, it can also engage in the retrieval of blockchain information. It can also calculate the worth of the crypto asset used in the transaction in addition to being able to work out the ‘risk score’ of the transaction based on the parameters spelled out above.
Inside the Processing Core
Numerous processing units can be embedded in the system so that different aspects of the transactions can be run at the same time. The filing also sheds more light on the use of the public key, record of transactions and the crypto assets involved. As discussed, the risk score will be calculated and fixed to each transaction. It is this score that will determine how suspicious a transaction is. If the transaction is considered too suspicious, then it can trigger more investigation into the transaction.
Back in August 2018, the bank sent in the application for a patent that can store transactions of crypto assets. The same patent will also allow other enterprises to easily keep their transactions based on cryptocurrencies. In October, Bank of America was officially granted the patent and it was named ‘hardened storage device’, coming up with a system of storage for cryptographic elements.
Also, Bank of America had earlier confirmed to the efficacy of the technology that powers the crypto world and that is the blockchain. Researchers at the bank released a publication in the last quarter of 2018 and it pointed to big brands like Amazon and Microsoft as some of the principal users of blockchain technology.