Alibaba's Blockchain To Prevent Illegal Smart Contracts
The representatives of Alibaba, an online trading company based in China, filled out a patent application with the US Patent and Trademark Office (USPTO) for blockchain, allowing third-party administrators to step into smart contracts in order to prevent unlawful activities. The document is available on the USPTO website.
The Alibaba’s document describes a method of blockchain transactions by which authorized users block or prevent suspicious accounts related to illegal transactions or unwanted tampering with blockchain.
Blockchain technology has many positive properties, among which are immutability, openness, decentralization, but the authors of the patent application consider them as disadvantages. Distributed ledger technology, in their opinion, in fact doesn’t always correspond to the conditions in special cases.
In reality, it is possible to administratively intervene in particular transactions. For instance, if a client shows an illegal activity, his account may be blocked. But at the same time, in accordance with the draft patent, such actions are in conflict with blockchain-based smart contracts and it is impossible to execute them.
The document provides for the creation of an effective tracking system for all accounts in blockchain. The system will recognize normal operations and won’t interfere with them.
As previously reported, Alibaba, along with the US corporation IBM, issued the largest number of patents based on blockchain.