Banks are maintaining dependence

[The_Tick]

https://www.coindesk.com/new-bank-of-america-patent-hints-at-plan-to-store-cryptocurrency-keys/

"Bank of America was awarded a patent for a device that stores cryptographic keys and the document's details hint at applications for cryptocurrencies.

In a patent awarded Tuesday by the U.S. Patent and Trademark Office, the bank outlines a "hardened storage device" for storing private keys – such as those used for blockchain platforms – explaining that, at present, most keys are stored locally protected by nothing more than a password."

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

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[pooya87]

slowly but surely everyone is getting involved in their own ways. mostly they are only adopting the technology so this news may be hinting at creation of some bank-created-token based on blockchain technology. which means they need to develop the infrastructure first here!

but like always i also believe that the banks will eventually adopt bitcoin and start adapting their services (loans, cards, savings account,...) to bitcoin so they will need something like this in place.
granted that would still be a silly thing in a decentralized world where bitcoin was created so that we no longer need banks but many newcomers still don't understand that and would want a bank-like service, example: the large usage of coinbase!

[jseverson]

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

If they ever go this route, I imagine they'd offer a deposit insurance. Either way, if they offer this as a service, they should be liable for any losses. There's really no point otherwise.

But yeah, whoever thought that banks would just roll over and die once crypto makes it big is lying to themselves. They're going to be able to find ways to adapt, just like every other business that tries to survive.

[davis196]

I believe that the banks are patenting such innovations only to stop the crypto-industry growth.
If a crypto company launches the same type of service,the bank can sue them for patent theft of something like that.It's a win-win situation for the banks,they have the choice to stop or to adopt cryptocurrencies,and they can't lose,by making a possbily "wrong" decision.

[geminiboy]

banks must choose cryptocurrency adoption because it's better, but if the banks insist on making the system like blockchain then I don't think it will happen and eventually the bank has to give up

[HabBear]

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

only if they're holding, securing the private keys of customers and are responsible for the compromise of those private keys (for which they are ensuring security). Few losses are ever controllable.

Banks can't regulate transactions that hit blockchains which they don't control. And of course banks want to get in on this...after they spent years talking shit about cryptocurrency they now are quick to follow it...yet they still won't praise bitcoin. Want to know why? Because they can't control it.

Last, the private keys could be for anything, not necessarily currency. Private keys are a critical part of the cryptographic formula that makes transacting information across a blockchain possible.

[cizatext]

I know the bank as the traditional financial institution will one day come to a point where they will not have a choice then to embrace the technology behind cryptocurrency since it now the order of the day. If the bank want to mentain it relevance in the era of competition then it have to embrace the blockchain for better performance.

[Pursuer]

This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

I disagree. we don't need centralization to enter this decentralized ecosystem for it to be adopted more. they will only introduce more restrictions and a lot of different fees on their customers who are using their services. and we are talking about services that we no longer need because of bitcoin!
you must have heard the phase saying "be your own bank with bitcoin". that means you don't need a bank anymore so their attempts now are only in order to stay relevant and not be pushed aside entirely in the near future as the "adoption" is happening with or without them.

[oceantiger]

This will be may be an answer to the menace of private key being lost. I also see it as the bank is getting ready for blockchain revolution which means the Bank of America will soon adopts blockchain. This innovative wallet storage championing by Bank Of America   will go along way to help in sustaining the blockchain technology and will also support the recovery of lost addresses both by individuals and corporate bodies.

[avikz]

https://www.coindesk.com/new-bank-of-america-patent-hints-at-plan-to-store-cryptocurrency-keys/

"Bank of America was awarded a patent for a device that stores cryptographic keys and the document's details hint at applications for cryptocurrencies.

In a patent awarded Tuesday by the U.S. Patent and Trademark Office, the bank outlines a "hardened storage device" for storing private keys – such as those used for blockchain platforms – explaining that, at present, most keys are stored locally protected by nothing more than a password."

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

What I think the device is somewhat very similar to the RSA device that we use in our daily office life to log in to the office VPN. However, for cryptographic keys, the usage may be somewhat different than the previous RSA devices, that needs to be attached to the computer through an USB and then you will be able to open any designated platform! That's what I am assuming but not sure as not much details are given in the article!

It's good that Banks have started understanding the utility of blockchain and cryptography! It reminds me one of the quotes of Mahatma Gandhi,

"First they ignore you, then they laugh at you, then they fight you, then you win."

We are on the way of winning, slowly but surely it will happen!

[AGD]

Does Trezor or the other hardware wallet manufactorers hold a similiar patent?

[stompix]

Does Trezor or the other hardware wallet manufactorers hold a similiar patent?

I'm quite sure I've read about them at least applying for a patent don't know if they were granted one.
But so did the Winklevoss brothers (again I'm not sure if they've got one) and so did coinbase and Tokenize,

[Anarchist]

That's it, the future of cryptos will be about patents, development, and commercial wars, and only the big ones will win. It's up to people to wake up if they really want cryptos to be free from banks (and even to be able to use for some countries...)

[dothebeats]

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

If they ever go this route, I imagine they'd offer a deposit insurance. Either way, if they offer this as a service, they should be liable for any losses. There's really no point otherwise.

Aren't banks suppose to cover the losses of their users and peers should a hack or loss within their vaults occur? Anyway though, it seems that more and more institutions are getting their hands on blockchain and crypto tech. Most banks relied on obscure security practices back then, and I think it's about time that they do something innovative on the way they handle other people's money.

That's it, the future of cryptos will be about patents, development, and commercial wars, and only the big ones will win. It's up to people to wake up if they really want cryptos to be free from banks (and even to be able to use for some countries...)

In part, yes. Most giant companies and institutions will just incorporate a part of a cryptocurrency and get a patent about it, make some innovations and voila!

[talkbitcoin]

That's it, the future of cryptos will be about patents, development, and commercial wars, and only the big ones will win. It's up to people to wake up if they really want cryptos to be free from banks (and even to be able to use for some countries...)

that will only be a "part" of the future not the future of cryptocurrencies!

the technology has been open source and will remain that way, and because of it you can't change much about the innovations and the real development that takes place in this technology. what they patent is only a small part of it which we can live without.

[Rashid555]

Banks are dependent on the money values and bitcoin is the crypto which is decentralized form of currency so banks fear this for it’s price irregularities and in these days the stability in the price is the panic situation for the speculators and I love to use crypto when the price is stable because at that time we understand the true value of bitcoin and crypto.

[Rozita]

The idea is not bad only if it is completely out of control of banks or any other authority. Because we don't need banks for storing our cryptocurrencies nor for storing our private keys and passwords. Any decentralization is in conflict with the purpose of cryptocurrencies.

[jseverson]

Aren't banks suppose to cover the losses of their users and peers should a hack or loss within their vaults occur? Anyway though, it seems that more and more institutions are getting their hands on blockchain and crypto tech. Most banks relied on obscure security practices back then, and I think it's about time that they do something innovative on the way they handle other people's money.

Yep, they also have insurance to cover losses. What I was saying is that this should extend unto any custodial services they might be planning on the future. This way, there would be a legitimate advantage in storing cryptos in bank over a personal wallet. It kind of doesn't make sense for them to keep keys and not touch the money though, unless it's a paid service.

But yeah, it's just a patent at the moment, which really isn't anything more than exclusive rights to an idea.

[nicster551]

https://www.coindesk.com/new-bank-of-america-patent-hints-at-plan-to-store-cryptocurrency-keys/

"Bank of America was awarded a patent for a device that stores cryptographic keys and the document's details hint at applications for cryptocurrencies.

In a patent awarded Tuesday by the U.S. Patent and Trademark Office, the bank outlines a "hardened storage device" for storing private keys – such as those used for blockchain platforms – explaining that, at present, most keys are stored locally protected by nothing more than a password."

Would this make banks responsible for uncontrollable losses? This will be great for adoption and hints at a future where banks essentially regulate smooth digital transactions and keep them secure.

That would be great because for the mean time people doesn't know about crypto but I know that someday people will eventually use crypto and will find a way to store them and it would probably banks.

[Kakmakr]

Anything that compromise Bitcoin principles of decentralization is not good for Bitcoin users. We do not want to be depended on any centralized service, including Banks for our private keys/passwords.

I also do not store any Private keys in Safe deposit boxes at a Bank for the same reason. Recently a lot of Safe deposit boxes were raided by Banks and also thieves in some countries and the Banks is washing their hands.

You simply cannot trust Banks with sensitive information like this.