- Bank of America has been awarded a patent by the U.S patent office for cryptocurrency key storage
- The patent highlights the fact that most crypto platforms store their keys on systems connected to the internet which makes them susceptible to hackers
- This new technology will create an added layer of security
On the 29th of October, the U.S Patent and Trademark Office awarded a patent to the New Bank of America for a ‘hardened storage device’ which will be used for the storage of private keys. This type of tech is the same type used for storing cryptocurrency keys. The patent went on to state that most cryptocurrency platforms are lacking in this regard, using only a password to secure their assets.
Not so disinterested after all
‘In specific embodiments of the system, the authentication routine is conducted as part of a crypto-currency transaction, a blockchain transaction or the like,’ The patent says.
Overall, the patent was not shy about the fact that there is a lingering interest in cryptocurrency. Mentioning it several times, it also went into great detail about how this new product can solve current problems.
It was mentioned that most key-storing computers are connected to the internet which puts them at risk to be hacked and the data they protect stolen.
This highlights the need for a new type of key storage. And ‘moreover, the desired storage means should provide for real-time responsiveness to tampering, such that misappropriation of the private cryptography keys is prevented.’
This highlights a significant flaw in the current key storage system and should this patented technology become the norm, users of crypto platforms will enjoy increased security.
Bank of America and the patent race
As blockchain technology develops the scope of its usage, we find ourselves in what might be described as a patent race with firms clamoring to obtain rights to as much blockchain technology as they can.
New Bank of America has been very active in this regard, as they have filed and been awarded dozens of patents relating to cryptocurrency including one to use blockchain to secure customer assets.
They also intend to launch a Bitcoin derivate in the future.
According to reports, this is in a bid to ‘be prepared’ for future spikes in blockchain technology.
“While we’ve not found large-scale opportunities, we want to be ahead of it, we want to be prepared,” Bank of America’s CTO Catherine Bessant said earlier this year.