It Is the Turn of JPMorgan Chase to Seek Patent for Blockchain-Related Solution
Now, it is the turn of JPMorgan Chase to seek a patent for a solution that is based on blockchain-technology. There is already a number of other companies that are trying to make use of the technology for one or the other solution. MasterCard, IBM, and Amazon have all been involved with the blockchain technology for one or the other reason. The American banking firm has filed its application that sought using distributed ledgers to facilitate, as well as, reconcile financial transactions.
In its patent application with the Patent and Trademark Office, JPMorgan has provided a sketch as to how the system would be used, Coindesk reported. The company wants to use distributed ledgers as a means of payment tracker, i.e., recording payments sent from one bank to another with the help of a peer-to-peer network. The financial services provider has expressed the confidence that the technology’s use would offer an exclusive way of recording transactions, as well as, storing of data. Though some sections of people think that the conventional system could take care of what the Blockchain technology could provide, there is no stoppage for interest level in the technology.
The company’s filing indicated the new solution’s capacity to reproduce the data on the ledger in either private or public distribution network. That means providing another benefit to users. The company also thinks that a blockchain technology has its own potentials to drive improvements from the existing system. This included enabling real-time settlement not only cheaply but quickly compared to the current conditions.
Processing Network Payments
JPMorgan has explained in the patent application about a method that focused on processing network payments in one embodiment. This would be done with the help of a distributed ledger and included other points. He said the first step involves an originator of payment initiating instruction of a payment to a beneficiary. The second step involves a payment originator bank resorting to a posting and committing the payment to a distributed ledger through the network of peer-to-peer.
As far as the third step, the payment beneficiary bank will not only post and but commit the payment to the distributed ledger through the same peer-to-peer network. The fourth and final step allows the payment originator bank to validate apart from processing the payment with the help of an internal system and debit an originator account.
The American bank explained, “For a cross-border payment to be made from a payment organization to a payment beneficiary, a number of messages must be sent between the banks and clearing houses involved in processing the transaction. This often results in a slow transaction, as there are may be delays in service due to correspondent banking, messaging networks, and clearing intermediaries in the payment flow.”
JPMorgan Treasury Services’ global payments head, Emma Loftus, said that the capabilities of blockchain had enabled it to rethink as to how key information could be sourced and exchanged among the international banks. The company has been engaged in developing a solution for quite some time now.