Bank of China – one of the four largest commercial banks in the country – has applied for patenting technology for scaling blockchain systems. This is written by CoinDesk.
The innovation is as follows: instead of storing transactions from the previous block in a new block, the data compression system can be used to package transactions from several blocks into a structure that is called a “data block” in the patent.
For example, as they say in the document, when the system receives a request to compress transactions from blocks 1 to 1000, the generation of a new block is started, which will be temporarily stored in another data store. After that, the system passes the packed data through a hash function with a certain hash value.
In addition, the compression system assigns names to blocks in the blockchain, newly generated “data blocks” and the compression event itself. The relationship between the three names is also recorded in the blockchain.
According to the patent, this method allows you to reduce the amount of data stored in new blocks, as new transactions are built into the blockchain, along the way providing traceability and protection against hacking for all previous transactions.
The patent is still pending and has not yet been approved, but it is already clear that it is part of the Bank of China’s broader initiative to improve its business through distributed registry technology.
Last year, it became known that the Bank of China, together with the Chinese Internet giant Tencent, was working on a partnership project for the use of detachment for financial purposes.