The Patented Parade of Blockchain: What’s Cooking at BofA?
Earlier this week, Bank of America (BofA) made headlines with a patent dubbed “Real-Time Net Settlement by Distributed Ledger System.” Although it gave a nod to the Ripple blockchain, the actual relationship remains murky — almost like a bad dating profile. In essence, BofA is dipping its toes into the crypto pool, but without fully committing. A large section of the XRP community is celebrating, but irony runs thick here: no mention of XRP itself. It’s like going to a pizza joint and leaving without the pizza, simply because you liked the décor.
A Complicated Courtship: BofA and Blockchain
BofA’s love for blockchain is complicated. With a history of acquiring the most blockchain patents, numbering around 82 by 2019, you’d think they’d be blockchain’s biggest fan. But no! Executives like Cathy Bessant have expressed skepticism towards its practical applications — like a protective parent who’s heard too many horror stories about first dates. “We want to be ahead of it, we want to be prepared,” she states, hinting they are just keeping their options open.
Past Relationships: Patent Troll or Cautious Optimist?
As analysts speculate if BofA is gearing up for a “blockchain patent war,” opinions diverge widely. Some see them as potential bad actors, safeguarding their turf using legal jargon and red tape. Others believe they’re simply playing it smart in a high-stakes game. Will Cai from Wilshire Phoenix suggests they aren’t a patent troll but are merely adapting to a changing financial landscape — like a person finally downloading a dating app to find love.
Structural Issues or Patented Propaganda?
Could the banks’ operational structures be too traditional for blockchain implementation? Iain Wilson from NEM Ventures thinks so. He argues those hefty patents might not yield new uses for blockchain because large banks aren’t structured for that level of open innovation. Imagine a hip café trying to adapt to ancient times — it’s just not going to mesh well. Meanwhile, Lars Seier Christensen of Concordium emphasizes that these patents are likely just for defense, ensuring they don’t get sued over innovations that they didn’t even adopt.
The Global Competitive Landscape: Who’s Winning the Blockchain Race?
Even if BofA’s intentions aren’t nefarious, they’re still sitting on a stack of patents that may never see the light of day. Contrast this to South Korea, where banks like Shinhan Card and KEB Hana Bank are actively innovating and filing robust numbers of blockchain patents. While South Korea holds a high patent grant rate, much of the global blockchain innovation is rooted in the U.S. and China — the weekend warriors of tech innovation.
So, while BofA is tiptoeing around blockchain, the race to realize its potential is heating up abroad. As the crypto landscape evolves, who knows — maybe one day BofA will surprise us and join the blockchain karaoke night instead of standing in the shadows, arms crossed, judging from afar.
