Tech Giant IBM Applies for Blockchain Patent for Development of Transaction Data via Nodes
IBM has applied for a blockchain patent to ensure transaction compliance through nodes data, according to a patent application published by the U.S. Patent and Trademarks Office (USPTO) on Thursday, August 16.
Entitled “Node Characterization in Blockchain”, the proposed system described in the patent intends to introduce a new method of data extraction via nodes on a blockchain network to make identification of different types of transactions easy. More specifically, any operation on blockchain network may possess one or more nodes that can carry some useful information regarding the character of transactions.
According to the patent document, the described system would extract a variety of characterization types, like “text mining, information analysis and discovery, entity extraction, compliance, semantic extraction, and ontology-based entity discovery.” The proposed manner of data extraction would allegedly help regulatory authorities monitor the security of data on blockchain.
For example, the system can help authorities combat money laundering by successfully detecting whether a node performs any suspicious activity on blockchain while processing a cryptocurrency transaction, such as “involvement of a tracked entity or violation of set transfer limits”.
The proposed system is deployed with modules that can be used for implementation of programmable hardware devices, such as array logic, gate arrays, hardware circuits, as well as graphics processing units.
Earlier today, the US bank holding firm Capital One also filed a patent application for blockchain-powered user authentication to make it easier to comply with regulatory process of major security requirements, like KYC (Know Your Customer).
On Thursday, a patent application filed by US-based crypto trading platform Coinbase was released. The proposed system intends to boost the security of BTC payments and address issues associated with the theft of private keys from the users’ wallets.