UBS is one of the biggest financial service companies in the world today, and they have been trying to find a way in which they can better protect their computer systems.
Cybersecurity a Growing Priority
There has been a lot of attention recently placed on cybersecurity by corporations both big and small across the world as hackers and scammers become ever more sophisticated.
Many of the largest corporations and governments in the world have been the victim of cyber attacks, and therefore necessary precautions need to be taken to prevent these types of attacks from happening.
The United States Patent and Trademark Office released a patent application last Thursday which led to a lot of interest to those in the finance and blockchain sectors.
The application was a patent by UBS in which they attempt to explain how they can utilize a distributed ledger to validate transactions. Because of the characteristics of blockchain technology, these operations would be permanent and incorruptible.
They made a specific point to emphasize that while there are currently some technologies that are using blockchain technology for accounting purposes, data security and verification, these systems are flawed due to their reliance on third-party management.
The investment bank is thus offering a solution to this problem. Not only is the blockchain highly secure, but UBS’s patent will not rely on a third party to be involved in the management or protection of this data.
For anyone familiar with smart contracts, they will be aware that they automatically register data when there has been a record added to the chain. As soon as a user adds this note, the relevant user will get a notification that has been sent to them by the contract.
Flexibility when Using Smart Contracts
UBS has pointed out that they have options available to them. They can place this smart contract onto the same blockchain which stores this new data or it can create two different blockchains, with one of them storing the data while the other one will be home to monitoring the new data additions onto the smart contracts.
UBS have been looking at blockchain technology for many years now and how it may apply to their business.
It was in October 2017 that the CEO talked about his belief that this blockchain technology was going to be something that changed how things are done in the financial services industry forever.
UBS has already gone ahead with some other applications of this technology last year. Primarily, the bank has developed a trade transaction platform in conjunction with IBM at the end of 2016.
This project was named Batavia, and it has since expanded into four significant banks who have now gotten involved in the project. These banks include the likes of JP Morgan Chase and Bank of America.
It has been revealed that the actual filing of this patent application was made back in May of 2016, with the patent only coming to light in recent days.