After becoming the first UK bank to make a deal with a major U.S. exchange service and wallet provider, Coinbase, Barclays proves huge trust in the cryptocurrency and blockchain industries.
Fast forward to the present, U.K.’s second-largest bank is looking to blockchain to streamline fund transfers and know-your-customer process as it files two patents applications revolving around security which were both published by the U.S. Patent and Trademark Office on July 9.
The first patent, Secure Digital Data Operations, relates to the transfer of digital currency from payer to the recipient ensuring a secure authentication of both parties. This also involves validating and recording the transactions with the use of a digital currency ledger and public-key cryptography.
The patent further describes the wide range of use cases for private and secure data processing using a blockchain system. For instance, claims and attestations could be verified on the blockchain by using the sample of insurance claims and credit status.
The second patent, Data Validation and Storage, is more closely about endorsing and storing data and claims relating to certain entities. This will be done by validating the personal information for Know Your Customer checks.
Barclays envisioned that such a system would benefit individuals, authorities, banks, and enterprises as well as entities to which a digital wallet could be assigned such as the Internet of Things (IoT) item. The proposal will provide a dependable form of verification without considerably increasing the technical expenses. It also improves the operation of telecommunication networks and computing environments. It further outlines the advantage of using a Merkle Tree Structure in order to maximize efficiency and ease data validation.
However, the existence of the patent application does not mean that the bank is developing any products with the technology. It is more in line with the representative members of the bank examining the promising technology.