Industrial commercial Bank of China (ICBC) has applied for a patent for a blockchain system to exchange Fiat currencies. In accordance with the document, the Bank intends to create a platform composed of financial institutions that are to function as nodes of a distributed network. The aim of the project is to increase the liquidity of financial assets.
The system will work as follows:
- The enterprise sends a request to execute a transaction.
- Creates a smart contract.
- The network nodes check the data on remittances.
- The transaction is completed after receiving a sufficient number of confirmations from the participants of the blockchain.
Representatives of the Bank said: "Our decision to patent is caused by problems in the existing system of international transfers for regular payments and for various financial instruments such as precious metals and futures. The current system is too slow and costly".
According to the State intellectual property office of China, ICBC also submitted a patent for a system of verification of personal information of users based on a distributed network. Thus, the Bank intends to apply the technology of the blockchain in two areas of its activities.