Bank of America’s Patent for Cryptocurrency Exchange System Application Gets Accepted
Bank of America‘s patent application for its proposed cryptocurrency exchange system has been accepted by the US Patent and Trademark Office (USPTO). The system will enable automatic conversion of one cryptocurrency into another, and the exchange rates will be calculated based on external data feeds.
How The System is Going to Work
From what can be gathered by going through the patent documents, Bank of America’s cryptocurrency exchange will use a system comprising of three separate accounts. Of these three accounts, the first one will be used by the customers of a business that uses the system, and the remaining two accounts will be used by the business itself.
The users will use the customer account to store the cryptocurrency of their choice. The second account, which is referred to as a “float account,” will act as a holding area for the cryptocurrency that the customer is selling. The third account, which is also a float account, will have the equivalent amount of the cryptocurrency the customer should receive in exchange for the cryptocurrency they are selling.
Once the conversion between the cryptocurrencies takes place, the converted funds are then transferred from the third float account to the customer account.
- Once the customer initiates the transaction, the Bitcoin will be transferred to the second float account.
- The system will calculate the Litecoin the customer should receive in exchange for the bitcoin they have, and deposit the Litecoin in the third float account.
- The Litecoin in the third account will be transferred to the customer account, completing the transaction.