Bank of China’s New Patent Offers a Blockchain Scalability Solution
Bank of China(BOC), one of the four largest state-owned commercial banks in China, has filed a patent with China’s State Intellectual Property Office (SIPO) for a method and a system to compress blockchain data, which it claims is helpful to scale blockchain networks.
In a document released by the SIPO on February 23 , Bank of China’s patent application was first submitted on September 28, 2017 and is invented by Zhao Shuxiang.
The patent filing suggests that it is a method as well as a system to compress transaction data on the blockchain. The system is designed to let full nodes receive requests of compressing transactions sent by clients. Based on these requests, a corresponding block will be packed into what the patent calls a “data block” which will then be sent to a data storage system.
Plus, the application clarifies that the compression system will run packed data through a hash function. And it also will give labels for identifying compressed blocks, newly-generated data blocks and the corresponding relationship between these labels. The relationship will also be recorded on the blockchain-based trading system.
By this method, the patent says it is able to solve the scalability issue that plagues current blockchain technology as large amounts of transactions mount in the system, without compromising blockchain’s vary nature of traceability and non-repudiation.
The patent is still under review and not be granted yet, the public record shows. However, this move already shows the leading state-owned commercial bank’s ambition to ride the blockchain wave.
This is not BOC’s first experiment with the distributed ledger technology. Last year, the state- owned media Xinhua reported that the bank has partnered with Tencent, one of China’s internet giants, to establish a joint financial techonology laboratory with a focus on blockchain. The report suggested that they were aiming
It is without doubt that China is the leading country for blockchain patents.In the 2017 Global Enterprise’s Blockchain Patent Ranking (Top 100) recently co-released by IPRdaily & incoPat, blockchain patents from China-based enterprises account for 49% among 1060 pieces of blockchain patents, far ahead of companies from other countries. Especially, Alibaba wins the patent champion 43 of blockchain patents .