Leading merikanskie financial holding JPMorgan Chase & Co intends to patent the system, involving the use of blockchain technology to accelerate and verification of financial transactions, reports CoinDesk.
In the application, published on the eve of the Bureau of patents and trademarks USA, JPMorgan describes a system using distributed registers for recording information about payments sent between banks through a peer-to-peer network.
It States that technology will create “a unique system to record the transactions and store data”.
“In one embodiment, the implementation of the present invention a method of processing network payments using a distributed registry may include: (1) the sender of the payment, transmitting the payment instruction to transfer the payment to the beneficiary; (2) the Bank of the payment sender, host and transmitting payment instruction to the distributed registry using peer-to-peer network; (3) the beneficiary Bank, hosting and transmitting payment instruction to the distributed registry using peer-to-peer network; (4) the Bank of the payment sender performing the validation and payment processing via the internal system of the Bank-sender of payment and to write off funds from the sender’s account”, reads a patent application by JPMorgan.
The application itself was initially filed in October of last year. According to its authors, the blockchain technology will help to improve the existing system, ensuring cheaper and faster calculations for transactions in real time.
“For the implementation of cross-border transactions between the payment organization and the payee has to convey a number of messages between banks and clearing services involved in the transmission process of the transaction. Often, such a transaction can be slow because of the correspondent Bank, message passing and clearing intermediaries in the flow of payments”, — said the authors of the patent application.
It is worth noting that this is the first attempt of JPMorgan Chase in the blockchain patents. At the same time, the holding has developed its own private blockchain Quorum for transactions with securities.
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