Major Chinese e-commerce company Alibaba has filed a patent on a blockchain-based system. It describes the possibility to add a third-party administrator, who will detect illegal actions and has the authority to halt a smart contract or even freeze the account.
The application was submitted by the U.S. Patent & Trademark Office (USPTO) through Alibaba Ltd. The authors of the patent stated even though the blockchain has countless advantages, it still lacks regulation, i.e. utility in a cruel-real world.
They are aware of inability of local authorities to provide legal actions if the account is involved in an illegal operation. The researchers want to establish administrative mediation in a blockchain network.
“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 activity conflicts with smart contracts in existing blockchains and cannot be carried out.”
This blockchain system implies that admin accounts will be able to send special transaction to nodes, which invokes a Smart Contract to carry out operating instructions on a particular account. However, such admin accounts may become targets for hackers.
Such a system may help to ease the process of giving administrators extraordinary freedom and let them perform these actions over the entire network.
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