ICBC Bank Looking to Speed Exchanges Through the Use of Blockchain
Based on recent patent application that was filed at the start of 2018, the project aims to create a platform in which partnering financial entities are able to act like nodes along this type of distributed blockchain network.
The process begins when users associated with a participating entity request transactions, triggering smart contracts that requires each entity to participate in validating the transaction. The said transaction is complete as soon as the blockchain network receives adequate validations above an agreed upon threshold from each participating node.
The main purpose of incorporating this blockchain concept includes removing intermediaries in addition to boosting liquidity of these assets.
ICBC announced that this concept is being explored due to the fact that their current set up is reportedly costly and much slower when transferring overseas or interbank assets. This is the case for both regular payments in addition to other financial assets including high-value metals.
Their recent statement inferred that the current centralized system suffers in efficiency, high costs, and inflexibility. The current system poses an obstacle for their plan to satisfy rapidly increasing demands for new financial products.
The application for this patent highlights ICBC’s efforts to incorporate blockchain. CoinDesk noted that the bank seeks to create a patent for blockchain technology with an aim at verifying user information across they type of distributed network.
The South China Morning Post also mentioned that as of early last year, ICBC overtook Well Fargo, gaining a ranking as the richest banks worldwide. According to recent reports, ICBC held $3.6T dollars worth of assets by 2017’s end.