JP Morgan Chase is in an attempt to patent a distributed account system to align and facilitate the financial transactions.
The patent application was originally filed in last October by the US Patent and Trademark Office. On Thursday, JP Morgan outlined a system that uses distributed books to record payments that pass from one bank to another through a peer-to-peer network that is to be sent. According to the bank, employing the technology would offer “an incomparable system for recording and storing data of the transactions”.
The facility to imitate this data on the private or public distribution network provides another benefit, as per the files.
JP Morgan further explains, in one quintessence, a process of handing network payments with a distributed ledger may comprise:
- A payee initiating a payment instruction to a payee beneficiary
- A payee bank committing and posting the payment order to a Distributed Ledger and establishes it in a peer-to-peer network
- The payee beneficiary, committing and posting the payment orders to the distributed ledger in a peer-to-peer network
- The payment originating bank, processing and validating the payment through an internal bank of the payment issuing bank and debiting the originator account.
A blockchain could improve existing systems by enabling billing in real time, cheaper and faster than is currently possible, the bank said.
“For payment related to cross-border made by a payment organization to a payee, a notification should be sent between the banks and clearing houses engaged in the settlement of the transaction, often resulting in a slow transaction, as there are probability of delays in service through correspondent banks, clearing agents and messaging networks in payment transactions, “explains the application.
It is quite obvious that JP Morgan would look for a patent for its blockchain-related work in the area of interbank payments. The bank has introduced a platform for this type of service, which was put together a few days before filing the patent application on the Ethereum offshoot Quorum.
Morgan has been in the position of the business analyst for almost a decade and with such expertise, he is one of the best expert hands with us. His profound understanding of the trade, commerce, and business trends makes him a reliable contributor to blamfluie.com.