The Industrial and Commercial Bank of China (ICBC), one of the Big Four of China's state-owned commercial banks and one of the largest in the world in terms of total assets, plans to patent the blockchain system for the exchange of financial assets.
According to the patent application filed by the bank in January and published last Friday, the system provides for the creation of a platform where the participating institutions can function as nodes for the formation of a distributed network.
When a user from one institution initiates a transaction request, he starts a smart contract, causing each node to check the transaction based on the information provided, including the balance on the sender's account, the name and amount of the transaction. The transaction will be deemed complete once the network has received sufficient confirmation from the participating nodes to reach a consensus above a predetermined threshold.
Proceeding from the document, the goal of the concept is to eliminate intermediaries in the existing system and increase the liquidity of financial assets.
ICBC noted that the need to study this issue has arisen because the existing system is slow and expensive when it comes to sending interbank or cross-border transactions for both normal payments and for financial instruments such as precious metals and futures. The document says:
“The traditional chain of transactions, built on the basis of a centralized system of trust, involves such problems as high cost, low efficiency, low stability and lack of flexibility. This hinders the process of entering the market to meet the rapidly growing demand for innovative financial products.”
This patent application was the last step in the series of efforts on the part of the bank in the field of blockchain. In April this year, ICBC also tried to patent a blockchain system that can verify the user's information in a distributed network.
According to the South China Morning Post, ICBC took the palm of victory from Wells Fargo and became the largest bank in the world in terms of total assets as of January 2017. According to the latest financial report, the financial institution owned 24.9 trillion yuan ($3.6 trillion) in assets in 2017.
Chinese companies, both public and private, have recently begun to actively explore the blockchain. Recently, the Chinese cloud provider Xunlei created a new file system based on blockchain. And last week the blockchain start-up THEKEY launched, in partnership with the Chinese government, a research fund of $20 million to support the development and application of the blockchain system in the field of social insurance.
Now, let's move to the technical analysis of Bitcoin (BTC):
As we expected, bitcoin almost reached the next support level of $6,200. That's our yesterday's forecast. Now, it is in the flat, in the corridor between $6,370-6,250. Perhaps today it will jump slightly, but in general we expect further decline. The nearest support levels are $6,200, $5,750.
Technical analysis of Ethereum (ETH):
Ethereum went down to the mark of $420, almost fell to the level of our yesterday's forecast, to the support level of $400. Today we expect that it will go up to the resistance level of $445, $460. Then, we are waiting for further downward movement to the support level of $400.
Technical analysis of Ripple (XRP):
Ripple did not disappoint us, having fulfilled our yesterday's forecast, and fell to the support level of $0.41. Today, it can jump to a resistance level of $0.45. Then, we expect a further decline to the level of $0.35-0.37. Let's wait, and then it will be possible to draw objective conclusions.