The patent filing in March 2018 allows a third party administrator to intervene in the smart contract transactions. However, in case of illegal or other unfortunate activities. The patent was published officially on October 4, 2018.
Smart contracts, as per our previous article is a digitally signing and self-executable agreement between two or more parties. Moreover, Smart Contracts are also self-enforcing and legally binding, hence automate the processes.
As much advantages blockchain brings us, it becomes impossible to stop illegal transactions taking place on the blockchain. However, having a third-party to authorize and freeze the accounts with the illegal activities will give us an edge.
The patent explains it as, 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 freeze the user’s account. However, this operation activity conflicts with smart contracts in existing blockchains and cannot carry out.”
The patent wants to create a responsible authority that will only restrict illegal accounts and not the normal ones. The scope and supervision will be minimal and the powers will vest in a trustful authority or a government body. The patent further reads,
Upon receiving an operation instruction sent from a specific account, a node in a blockchain network can invoke a corresponding smart contract when determining that the operation instruction issuance is legal.
This is to execute corresponding operations on an account corresponding to the to-be-operated account information, which achieves a goal of supervision on accounts in the blockchain and solves the problem of processing special transactions like administrative intervention in a blockchain.
This might be a solution with the Ethereum network easily. By issuing two smart contracts, wherein data and logic are separate. One can call the other by use of command and proxy contract. This will let the user get some control over the smart contract.
Smart contracts in itself are very complex, amending these to upgrade the contracts. This would cause a lot of problems and not to mention the bugs after development. However, Alibaba is a huge company with huge talents and resources to bring this to life.
Should there be an authority to take control and curb accounts? Does this make blockchain and decentralization come to naught? Let’s discuss.
You can also go through some relevant coverage:
- Alibaba and IBM Tops Global Rank for Number of Blockchain Patent Filed
- Top 50 Largest Public Companies Exploring Blockchain