The famous tech giant, IBM, is on a bid for a patent on blockchain technology in the development of a data identifier based on nodes, according to a publication by United State Patent and Trademark Office (USPTO) on August 16, 2018.
“Node Characterization in Blockchain”
The Patent which was tagged “Node Characterization in Blockchain” is on the verge of introducing a revolutionary method of data extraction from blockchain technology nodes so as to signify and differentiate varieties of transactions. To be more precise, any operation on the new blockchain technology may have a node or several nodes with the capacity to carry useful information about the character of transactions. According to the details of the patent:
“Every node registers a set of functions to be called when a new transaction occurs on the blockchain node. The registered functions are called ‘callbacks.’ As an example, the invoke function is called whenever a transaction is executed on the blockchain.”
Based on the release made, it was expressly stated, the speculations described which would possess a wide range of characterization types Austin as “entity extraction, text mining, information analysis and discovery, compliance, semantic extraction, and ontology-based entity discovery.” This method of extracting data is designed to empower regulatory authorities to perform its oversight function while thoroughly monitoring the security of data using the blockchain system.
For instance, the system caters for an anti-money laundering (AML) method by detecting whether a node acts in a suspicious of fraudulent tendencies on blockchain while in a virtual currency transaction. This will include acts such as violation of daily transfer limits or engagement of a tracked entity.
According to the system description, the ingenious system is used together with modules. It features the capacity to be implemented as programmable hardware devices which is similar to gate arrays, array logic, graphics processing units as well as hardware circuits.
Similar to this move by IBM, it was earlier reported that US Capital One Bank Holding recently filed for a patent for its ingenious blockchain-powered user authentication to assist the regulatory process of significant security requirements which is (KYC) “know your customer” method.
Also, in the same week, a patent by Coinbase, US major exchange, and wallet platform, was filed and released, the patent which is hinged on ensuring and boosting the security of Bitcoin (BTC) payment was released to particularly address issues associated with the theft of users private keys from their wallets.
This commendable steps taken by several business giants have further shown the level of compliance and regulatory precautions needed to be made by blockchain-related firms so as to ensure an enabling environment where the technology can thrive.