The platform will calculate levels of risk and will give a score to prevent scams. It would allow recognizing suspicious operations
The second bigger bank in The United States, Bank of America, recently received a patent to work on a risk detection system based on blockchain technology. The intention of this important institution is to prevent risks during transactions with cryptocurrencies.
The bank, located in North Carolina, was worried about the current situation with cryptocurrency transfers and swindles. For that reason, it requested the patent with the aim to start its new project.
In this sense, Bank of America obtained the approval of the patent, according to what the financial organization explained during a presentation held in the United States Patent and Trademark Office (USPTO), at the end of April.
“As technology advances, financial transactions with cryptocurrencies have become more common. For some companies, it would be convenient to calculate the risks of transactions with cryptocurrencies”, the document says.
How Would Be the Process?
The patent includes dispositions to create a system able to calculate the risks in transactions between the bank’s clients and third parties. In addition, the platform will assign a score to indicate if the transfer is secure.
The official text details different transaction processes as a way to guarantee more transparent operations with cryptoactives, in order to make those exchanges more reliable and reduce the risks for all users involved.
The score will allow recognizing suspicious operations. When the system finds any irregular activity, it will start an additional investigation process to approve or not the transaction.
The system will include a processor in charge of receiving the request to execute the transaction with cryptocurrencies between the bank’s clients and third users. This processor could store information in the chain of blocks, determinate the cryptocurrency value, and calculate the “risk score”, looking at previous examples. “The authentication routine is done as part of the transaction process, a transaction of a block of chain or something similar”, the patent explains.
The document also indicates that it is possible to integrate more than only one processor to the system, in order to tag different aspects of all the transactions simultaneously. The text highlights elements such as the public key, the transaction record, and the identification of the cryptocurrencies used.
This information will help to calculate the risk score. The risk factor also could be calculated using the data from the transaction record associated with any part involved in the operation and verifying the IP direction.
This is not the first time that Bank of America gives a tool to the cryptocurrency’s world. Since 2014, the bank has requested 23 patents related to blockchain technology, In August 2018, the institution requested another patent to develop a cryptocurrency storage system for different companies. The name of this project was “Reinforced Storage Device”, and its objective was to store and protect keys as the ones used on blockchain platforms.
In this way, Bank of America continues showing interest in the cryptocurrency sector and the world of blockchain technology, which now is used in different fields thanks to its capability of storing, preserving and protecting crucial data.
By María Rodríguez