Alibaba uses blockchain system to tackle illegal activities. It has been an on-going challenge for e-commerce giants to tackle illegal transactions and activities with their user accounts. Alibaba, one of these e-commerce giants, has found a solution to this business concern. This is by enabling third party intervention if there are any illegal activities or transactions through the utilization of Smart Contracts. ‘Smart Contracts’ are computer security protocols. In this, the terms of the agreement is written between the parties.

Alibaba reportedly filed a patent application with the U.S Patent and Trademark Office (USPTO) in March this year. USPTO confirmed by publishing the patent application earlier this month.

Alibaba’s patent document revealed the significance of blockchain technology by saying that blockchain was an open, unchangeable and decentralized network.

The patent further explained that: “Alibaba uses blockchain system to tackle illegal activities.  In real life, there is a type of administrative intervention activities in the category of special transactions. For example, when a user performs illegal activities, a court order will execute to freeze the user’s account. However, this operation activity conflicts with smart contracts in existing blockchains with smart contracts in existing blockchains and cannot be carried out.”

According to the patent, Alibaba wants to develop a blockchain system which will have a supervision system. As a result, this is for abnormal and illegal user account transactions. It explained “Upon receiving an operation instruction from a designated account, a node in a blockchain network can invoke a corresponding smart contract. This determines that the operation instruction is an issue legally. To execute corresponding operations on an account corresponding to the to-be-operated account information. This achieves a goal of supervision on accounts in the blockchain and solves the problem of processing special transactions like administrative intervention in a blockchain.”

However, this development will enable the administrators to increase their security ability along with simplifying the smart contracts amendment.

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