ICBC, The World's Largest Bank Will Soon Using Blockchain Technology
ICBC-Industrial and Commercial Bank of China, come under the state-owned Big-Four commercial banks of China. The great news is that
ICBC is filing a patent in the blockchain technology for the exchange of financial assets.
The bank has filed a patent in January. It has revealed on Friday that the system will consist of a platform in which the participating institutions work as nodes forming a distributed network.
Let us consider a user using any medium initiates a transaction request. It will trigger a smart contract, causing every node to check the authenticity of the transaction as per the given information. It includes the sender’s account balance, transaction amount and the name. Once the network has received enough validation from the participating nodes and have reached a predetermined threshold, the transaction would be deemed complete based on the patent document, the goal of the system is to improve the liquidity of the financial assets and remove intermediaries in the existing system.
ICBC said that it has been exploring for options because its existing system is costly and slow for cross-border or interbank transactions of financial instruments and regular payments. This includes futures products and precious metals also.
The document states that the traditional centralized credibility system has problems of high cost, low stability, low efficiency and little flexibility. This prevents the bank’s process of launch-to-market from reaching full potential in the rapidly evolving market for advanced financial products. China State intellectual property office says that the patent application is the latest filing by the bank on blockchain technology. The bank has already processed patent for a blockchain system that verifies user information.
According to a report, ICBC has overtaken Well Fargo to become the largest bank in the world by total assets, in January 2017. Currently, it has $3.6 trillion (24.9 trillion yuan) as per the latest financial reports.