Alibaba files blockchain patent to target illegal activities
Chinese e-commerce platform Alibaba has applied to obtain a patent for a blockchain solution that allows for third-party intervention where illegal activities have taken place.
The patent application was published by the US Patent and Trademark Office on Thursday, October 4, after being filed in March this year.
The system covered by the patent will allow authorised parties, which could be a government agency or a trusted institution, to freeze the user accounts found to be engaging in illegal transactions.
Alibaba did not specify what type of illegal activity the patent protects against.
Blockchain technology has attracted “extensive attention” because of its openness, unchangeability and decentralisation, and the emergence of smart contracts has further expanded the scope of transactions for blockchains, said the application.
“In real life, however, there is a type of administrative intervention activities in the category of special transactions. For example, when a user performs illegal activities, a court order may be executed to freeze the user’s account. However, this operation[al] activity conflicts with smart contracts in existing blockchains and cannot be carried out,” it added.
The Alibaba patent explained that, because of this, there is a need for a blockchain-based processing method that allows for special transactions, such as administrative intervention.
It goes on to note that the system would offer administrative support and supervision of user accounts, but would not limit normal transactions from going through.
In March, Thomson Reuters reported that the number of new patents filed globally for technology related to blockchain tripled to a record high of 406 in 2017, from 134 in 2016.
China led the way with 56% (226) of blockchain-related patent applications, with 22% (91) from the US.
According to news site Nikkei Asian Review, Alibaba filed more than 10% (43) of the world’s patent applications for blockchain last year.
In August, Alibaba reportedly partnered with the Chinese government to secure medical treatment data through blockchain in eastern China, allowing authorised doctors to instantly access patients’ medical histories.
In other blockchain developments, Alibaba has taken on Dubai-based cryptocurrency company Alibabacoin Foundation over trademark infringement.
While claiming Alibabacoin Foundation had used the ‘Alibaba’ trademark to raise more than $3.5 million in crypto assets known as “AlibabaCoins” from investors, Alibaba requested a preliminary injunction.
But, in late April, Alibaba failed to secure a preliminary injunction against the Alibabacoin Foundation. On Friday, October 5, District Judge J Paul Oetken of the US District Court for the Southern District of New York held a status conference in the case.
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