The state-run Bank of China is in the news lately for its patent that will allow scaling of the technology behind many cryptocurrencies – the blockchain.
The commercial bank (not to be confused with the People’s Bank of China which is the country’s central bank) is looking to scale the Blockchain technology systems, according to local sources. September 28th 2017 was the date when the bank originally applied for the patent – but the Chinese State Intellectual Property Office (SIPO) only released the news yesterday.
Basically, the patent focuses on a method for compressing blockchain data and therefore solve the problem of storage space in new blocks – without any compromise on the traceability and immutability. As described in it, the amount of data stored in new blocks would be reduced and compressed into ‘single data blocks’ which would be hosted on different data storage systems.
The data will afterwards run through a hash function with the data block hash value – and the compression would map the relationship between the compressed block, the data block and the compression event. All of this will be recorded on the Blockchain.
After the ban of Initial Coin Offerings (ICOs) and foreign exchanges, this move is surprising for China because it is seen as one of the stricter countries in terms of crypto regulation. However, there are many multinational companies from China which could benefit from the blockchain technology – just like the giant Lenovo that also filed a blockchain-based patent for verifying the integrity of physical documents lately.
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