JPMorgan Chase intends to patent a system in which a distributed register will be used to implement and reconcile financial transactions, CoinDesk writes.
In an application published by the US Patent and Trademark Office this Thursday and originally filed in October last year, JPMorgan describes a system that uses distributed registries to record information about payments transmitted by banks to each other via a peer-to-peer network. According to the bank, the technology will create a “unique system for recording transactions and storing data.”
“In one embodiment of the present invention, a method for processing network payments using a distributed registry may include: (1) a sender of payment transmitting a payment instruction for transferring payment to the recipient; (2) the sender’s bank that places and transfers the payment instruction to the distributed registry through a peer-to-peer network; (3) the payee’s bank placing and transferring the payment instruction to the distributed register through a peer-to-peer network; (4) the sender’s bank that performs the validation and processing of the payment through the internal system of the sender’s bank and debits the funds from the sender’s account,” the application says.
Blockchain is able to improve existing systems by providing cheaper and faster calculations for real-time transactions, the bank said.
“To implement a cross-border transaction between the payment institution and the payee, it is necessary to transfer a series of messages between banks and the clearing services involved in the process of transferring the transaction. Often such a transaction will be slowed down by the correspondent bank, messaging networks and clearing intermediaries in the payment flow,” JPMorgan explains.