Apparently, Bank of China, one of the most important commercial banks in the country and the fourth largest, has the intention to work on a solution to scale blockchain systems. The bank has filed a patent application for this process that may help blockchains to scale.
Bank of China’s Blockchain Scaling Solution
On February the 23rd, a document has been released by China’s State Intellectual Property Office, known as SIPO. The document explained that the application submitted by the bank was presented on September the 28th, 2017, and invented by Zhao Shuxiang.
The new system would work in different way that today’s blockchains. Instead of letting a block store the transactions from a previous one, with a specific system that compress the data, the new block could be used in order to pack transactions from multiple blocks. This is what the patent calls a “data block.”
If the system receives a request to compress transactions from different locks (1 to 1,000), it creates a new data block that is temporarily hosted on a different storage system. Once it will be needed, the system will run the packed data using a hash function with a hash value.
In this way, and according to the registered patent, the amount of data stored in new blocks will be reduced as transactions mount in a blockchain. At the same time, it ensures that data from previous transactions is still tamper-proof and traceable.
At the moment, different financial institutions and governments are using blockchain technology in order to improve their products and services. At UseTheBitcoin we have written several times how governments and enterprises are using distributed ledger technology on a daily basis. Blockchain is able to reduce costs, increase efficiency, reduce bureaucracy, register information and track records very efficiently.
The patent is being reviewed and is yet to be granted. The state-owned bank is working hardly in order to increase its business by using distributed ledger technology. Bank of China, has already been working with China’s internet giant Tencent test blockchain technology in various financial applications.
Image: Finews Asia