Alibaba has recently filed a patent application with the U.S. Patent and Trademark Office (USPTO) for a blockchain powered administration intervention in case of illegal smart transactions, as published by USPTO on October 4. This smart contract will result in the reduction of hackings or any kind of threats to the Chinese giant conglomerate.

The third-party administrator is to be signed in a smart contract. The smart contract is a computer protocol which facilitates verification and transfer of the data present within blocks. However, in case of any illegal transaction, it becomes difficult to keep a track on the ledgers. That’s why Alibaba proposes for a blockchain-powered third party administration.

Alibaba says that such third-party applications will freeze or terminate user accounts in case of any illegal activities without restricting the normal transactions happening on the real-time basis. This will allow the company to have a more secured transactional and cost-effective management of the data through Blockchain application.

However, the power of running supervision will remain limited for few. This smart contract will result in the reduction of hackings or any kind of threats to the Chinese giant conglomerate.

However, there is another way to achieve this through upgradable contracts. Upgradable contracts host logic and data in separate contracts. They can correspond with each other through a command and proxy thereby providing developers control over the contracts after they go live. Interestingly, the same would make nodes more vulnerable to external attacks.