As Bank of America gets another crypto patent, developers need to keep up!

30 Oct, 2018
by Arthur Sillers
As Bank of America gets another crypto patent, developers need to keep up!

Bank of America had a patent approved yesterday for a new way to store cryptographic keys, yet another hint that the big banks are positioning themselves to adopt crypto technology into their financial infrastructure. Crypto developers would be wise to watch these patents in order to stay competitive.

This is far from the first time that The Bank of America has published such a blockchain patent, let alone the first such patent awarded to the ‘big banks,’ who, ostensibly were the ones who should be scared of the competition from cryptocurrency.

In fact, with the infrastructure the banks already have in place, crypto start-ups will be fighting an uphill battle to compete with banks once they have integrated blockchain technology into their practices. Crypto boasts very low transaction costs, and potential speeds which rival Visa payments are hopefully on the way, but what then motivates someone to continue using a crypto exchange rather than a blockchain-powered bank.

The Bank of America in fact does not have a rollout plan, but they are poised to be technologically ready to develop a competitive framework to anything crypto has to offer, according to Fortune, The Bank of America CTO recently said, ‘while we’ve not found large-scale opportunities, we want to be ahead of it we want to be prepared,’ indicating that BOA is pursuing its patents not for any long term project as such, but building the pieces so that it can compete with decentralized alternatives to banks which will crop up.

This patent in particular, is aimed to solve a constant problem for crypto traders. One of the biggest hurdles that people who potentially might want to use cryptocurrency have to get over is the security of their key. However secure Blockchain itself may be, it still requires users to guard their private key, which is especially unnatractive to those who have no knowledge of cryptography, or are not interested in computer security measures.

Bank of America clearly realizes this limitation in crypto adoption, and is getting ahead of it. Crypto developers would do well to watch the patents drafted by entities such as BOA, who not only are watching crypto closely, but understand what customers are looking for in financial institutions, payment platforms, and banking services.

In this case, for example, if a crypto exchange could find a seamless and user friendly way to ensure the safety of private keys in a way accessible to average consumers, it would likely go a long way in staying competitive not only to other exchanges, but to any new institutional solutions BOA or other banking giants have ready to go.

Read more: Bank of America joins the race in developing Bitcoin trading product54% of crypto exchanges have sub-par security measures, report finds 

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