Blockchain technology he showed us that he can come from a wide range of use cases. Such as resource tokenization, supply chain management, digital identity, health care and more.
These use cases are possible thanks to the unique characteristics of technology such as the use of distributed ledger technology, cryptographic security and the ability to code smart contracts in it.
Blockchain technology extends beyond cryptocurrencies and government entities, businesses and financial institutions are experimenting with its use cases.
Bank of America to develop Blockchain-based ATMs
On December 26, 2018, the Bank of America (BOA) filed a patent to develop cash-block-based ATMs for cash management. The implementation of blockchain technology in ATMs is to make transactions faster, more efficient and traceable according to a report Finance magnets.
BOA is the second largest bank in America and has already deposited about 50 patents related to the development of a financial system that uses DLP (distributed ledger technology) technology.
They filed their latest DLT patent at the U.S. Patent and Trademark Office (USPTO) and aims to revolutionize ATMs or cash-handling devices thanks to blockchain technology.
The main reason for blockchain implementation is to improve the communication difficulties encountered today in ATMs.
As stated in the patent document:
Liquidity management devices can be used in operations centers and other locations to provide various functions, such as cash withdrawals and deposits. In many cases, however, it may be difficult to integrate such cash management devices with a technical infrastructure that supports banking and other operations, while optimizing the efficient and effective technical operations of cash management devices and various systems. related IT.
Therefore, there is an innovation with the use of blockchain technology that eliminates many of the problems of communication and connectivity between ATMs and financial institutions.
DLT improves communication
The problem with ATMs today is their limitation to communicating only with their particular financial institution while it works on the banks' operating system.
DLT and blockchain technology eliminates this problem by facilitating communication problems and transaction monitoring more efficiently. If all goes as planned, these new ATMs will have these advantages because ATMs will work on the same ATM network.
Customers of different banks can use these ATMs and back-end processes will be much more efficient for banks. It will record all cash transactions including deposits and withdrawals on the blockchain in real time.
Trying to stop the cryptocurrency revolution?
The BOA sees the benefits of blockchain technology and is trying to adapt the same benefits to their original obsolete cash system. While some of these benefits may apply to some extent, the benefits of cryptocurrency still outweigh the obsolete cash system.
With cryptocurrencyATMs are not even necessary as everyone can access their money directly from their mobile phone or computer. Crypto users do not have to pay commissions to access their money and can transfer the value all over the world for much less expensive and faster than any traditional method.
The advantages of cryptocurrency on the legacy banking system and on the legal currency go on and on. Big banks can try to implement and adapt these benefits to their system, but eventually people will understand what is really better.
Do you think the BOA will eventually add cryptocurrency support to their blockchain-based ATMs? Or will they try to adapt the benefits of the crypt to their legacy banking system? Let us know what you think in the comments section below.