UBS in search of protection

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In a patent application published by the U.S. Patent and Trademark Office last Thursday, UBS explains how it can use a distributed ledger to validate transactions by creating a permanent record of each action committed on the chain.

According to the application, the main advantages of a distributed ledger in comparison with traditional technologies are its decentralization and immutability.

The application noted the use of smart contracts to automatically register that a record is added to the chain. After adding an entry, the user will automatically receive a notification sent under the same contract.

UBS indicated that it could either place a smart contract on the same blockchain that stores the data being added or develop two separate blockchains: one for data storage and one for storing smart contract monitoring data.

The company has long been interested in blockchain applications and UBS chief executive Sergio Ermotti believes that blockchain technology is played a big role in changing and reshaping their industry.

The company has already discovered a commercial trading platform built on a blockchain, in partnership with IBM in late 2016. Called Batavia, the project has been expanding with four large banks joining the effort in early October 2017.