Alibaba Seeks to Eliminate Middlemen in Blockchain Payments Patent
Chinese e-commerce large Alibaba has been exploring the use of blockchain technology to improve world-wide payments, according to a brand new patent filing. The patent application – “SOMETHING and Technique That Adjusts BALANCE on a Blockchain” – was filed with the China Condition Intellectual Property Workplace in January of the year and was revealed on Friday.
Aimed to cope with the broad notion of adjusting accounts balances greater than a blockchain, the business enterprise explained what sort of system may be used to greatly help cross-border transactions that particularly involve a third-party payment vendor.
Every time a transaction request is established, the nodes would verify the user’s balance, considering any kind of legal compliance techniques that really must be followed – a task enforced by triggering intelligent agreements encoded to the blockchain, the patent says. Subsequently each node could keep a ledger of customer balances, reflecting accounts in third-party payment suppliers’ cellular wallets.
For example, the record said that third-party payment companies and their banking companions in a variety of regions will all are nodes to create the envisioned blockchain. The nodes would after that update the quantity of the users sending and obtaining the transacted quantity in a decentralized method, thus eliminating the need for an intermediary and avoiding the resultant delays in deal time, predicated on the document.
Ant Financial said it really is now utilizing a blockchain-based system to permit Alipay users in Hong Kong to send cash to residents in the Philippines with a third-party payment vendor, and with Regular Chartered because the banking partner.
Although Alibaba didn’t describe how or if it intends to utilize the machine commercially, the document was published just days following a company’s payment affiliate Ant Financial announced the beginning of a blockchain-based remittance solutions.