One of the four largest banks in China has filed a patent suggesting a way to scale Blockchain better. In the patent application filed on Friday, the Bank of China proposes a method of compressing the blocks.
While Chinese regulation of cryptocurrency is currently bleak, one of the country’s largest banks now appears to be turning to Blockchain technology. For example, the Bank of China has filed a patent proposing a method to improve Blockchain scalability. Financial company from Beijing proposes in its 9-page application a way to reduce the block size of each block in Blockchain.
So, it wants to introduce a system for data compression, which avoids that the information on previous transactions become too large. The purpose is to generate new data on a separate system, similar to the sidechains. This very short document is just a patent application. It remains to be seen how sophisticated the attempt to improve the scaling of Blockchain actually is.
Blockchain development away from regulatory issues
Situation around the crypto-ecosystem in China is especially tense for Bitcoin & Co. Just last year, numerous exchanges were closed and ICOs were banned, which eventually led to panic in the markets. The exodus of national stock exchanges to Hong Kong, Singapore and Japan was also a consequence of the ban. As it was repoted earlier, these bans should be extended. The authorities in China now apparently want to block access to crypto exchanges. In the course of extensive censorship measures, the government also wants to ban advertising for crypto exchanges.
Looking at the recent push by the Bank of China in the light of these developments, one can see that China is trying not to be completely out of touch with technological developments. If the application succeeds, it is a small step for the state regulated bank towards Blockchain adaptation.
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Categories: Crypto Currency