Bank of America Seeks Leadership in Crypto Space
Bank of America (BofA) (NYSE:BAC) was recently awarded a key patent in the crypto and blockchain space. This helps close its “crypto” intellectual property gap with Alibaba and IBM. The banking giant received a patent for “tamper responsive” remote storage of private keys. The solution offers an increased level of security to the storage devices linked to personal keys – such as digital wallets. It will also provide real-time intimations and responses to hack attacks. Prior to that, Alibaba won patent application that seeks to combat illegal activities on the blockchain platform. The World Intellectual Property Review (WIPR) reported that the Chinese e-commerce giant is applying for a patent for a solution that will tackle the issue of illegal smart contracts.
The patent filing says that the current storage methods do not provide real-time response to hacking attempts. BofA maintains that a real-time response can better prevent the misappropriation of private cryptography keys. In the patent, BofA says that the wide range of private keys stored in common consumer-grade devices is vulnerable to misappropriation by an entity desiring to assume the identity of the user.
The bank filed the patent initially almost two years. Bank of America’s strategy appears to position itself as “the” bank for private keys. In essence, the bank is offering a sort of digital safe deposit box that has the backing of a premier banking corporation. Since the bank now owns the patent, it will be a major player in the crypto game.
BofA Real-Time Response Mandates Deleting Cryptography Keys
The patent says that existing systems dedicated to the storage of personal keys have the capacity to communicate whenever there is a security breach. However, these systems do not respond in real-time. BofA’s design will tamper signals and respond in real-time by deleting private cryptography keys securely stored in the memory.
Many crypto investors may panic at the thought of their private keys deletion. However, the patent says that the remote/external nature of the storage devices ensure that the cryptography keys are accessible to, but do not communicate to, the remote computing devices during execution of the authentication routine. This feature restricts the private authentication keys exposure to misappropriation.
It is not the first patent in the blockchain and crypto space for BofA. The bank has patents for almost everything including a system for cryptographically producing security tokens to business exchange platform. The Chief operations and technology officer of BofA stated in June, “We’ve got under 50 patents in the blockchain/distributed ledger space…While we’ve not found large-scale opportunities; we want to be ahead of it, we want to be prepared.”