Bank of America Bags License for Blockchain Security System
Financial services provider Bank of America Corp. has clinched the patent for the blockchain security system, recently documents published by the US trademark agency showed.
Bank of America said the patent, which was awarded by the US Patent and Trademark Office (USPTO), provides a way for managing security and access to resource sub-components.
It gives “means for managing security and access to resources associated with blocks/sub-components of a distributed validating network, such as a blockchain network,” based on the promulgated decision.
Blockchain is a decentralized, distributed public ledger used to record cryptocurrency transactions which are recorded chronologically. This enables market participants to track their digital currency dealings without central recordkeeping.
The issued text explains how security tokens, basically electronic keys, different from blockchain-based assets which mirror physical securities, would be used to grant access to users to the information indicated in a specific block.
Under the system, tags are generated which can be assigned to blocks so a designated user can trace the block by presenting the corresponding keywords associated with that tag. A security token is produced that is either appointed or provided to the authorized person or entity which is then set up to give the access to the resources in the block.
It would be automated meaning the network itself would have the capacity to grant and track access.
“[W]ith the advent of distributed/decentralized blockchain networks … a need exists to develop systems … that manage control over blocks of resources,” the bank specified in its patent application.
Bank of America recognized the necessity to equip users the capacity to easily identify blocks to address users’ concerns.
“A need exists to provide designated entities/users the ability to readily identify blocks that are relevant to the designated users’ concern and, once blocks have been identified, security features that assure that the designated entities/user that are accessing the blocks are, in fact, authorized users,” the firm said.
Since the system is automated, the security tool would be given the ability to grant access to the blockchain for a specific period of time, depending on the reason for accessing the network.
“Moreover, a need exists to control the access given to the designated entities/users, such as, by way of example, control over the period of time during which a designated entity may be granted access and/or the amount of access granted to the designated entity/user,” the patent doc noted.
The bank noted the USPTO decision signifies another intellectual property development for them. It has lodged several applications related to blockchain in past years.
Filed on May 11, 2016, the innovation address the aforementioned needs and optimize its usage by having apparatus, systems, computer program products, or other methods in place to manage “the security and access to resources associated with blocks (i.e., sub-components) of a decentralized distributed blockchain network.”
Blockchain network can verify resources including the person or company that controls or are associated with these resources. They may also grant access to other person or firm.
“The system includes a distributed blockchain network comprising a plurality of decentralized nodes for storing and validating resources. Additionally, the system includes a computing platform including a memory and at least one processor in communication with the memory. The memory of the computing platform stores an access control module that is executable by the at least one processor,” Bank of America explained.
It is subject to modifications, omissions, and/or substitutions, the bank mentioned, given the evolution of existing technologies and the system itself is not restrictive in nature.
Located in North Carolina, Bank of America is multinational financial services company which has been ranked as one of the largest banks in the US (in terms of assets). The financial institution, founded in 1904, provides its products and services through 4,600 retail financial centers, approximately 15,900 automated teller machines, call centers, and online and mobile banking platforms.