Altcoin News: Bank of America Patents a Cryptocurrency Transaction Risk Assessment System

May 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The second largest US bank — Bank of America — expressed concern about the risks of cryptocurrency transactions. The bank has applied for a patent system that will assess the risk of each transaction.

The patent application describes a transaction risk determination system that focuses specifically on digital currencies. The system is based on the assignment of a specific evaluation of each transaction between a client and a third party.

“As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to calculate the risk for performing a cryptocurrency transaction,” the patent application states.

The document describes the “processor”, which receives a request from the client to create a cryptocurrency transaction with a specific recipient. After that, the handler performs several functions, receives information from the blockchain, estimates the amount of funds transferred and assigns a risk assessment to the transaction.

If the score is high, then the transaction will fall into the category of suspicious and investigated more carefully. At the same time, there can be several processors in the system that can perform additional functions.

Note that earlier Bank of America has already patented several systems, including a cash processing system using a blockchain, as well as a system for storing private keys.

Author: Marko Vidrih