Nasdaq Files Patent for Blockchain-based Asset Ownership Data Storage System

6 months ago admin2 Comments Off on Nasdaq Files Patent for Blockchain-based Asset Ownership Data Storage System

Major stock exchange operator Nasdaq has filed a patent for a Blockchain technology-based asset ownership data storage system. The system uses distributed ledger technology (DLT) to record the owner of an asset and employs digital wallets to enable an owner to access his/her assets.

In the patent application that was published by the US Patent and Trademark Office (USPTO) as of mid-November 2017, the exchange operator detailed how Blockchain can be used to record the ownership information of a particular asset and how can it be accessed by its owner by using a digital wallet.

Part of the application reads:

“Information regarding the ownership of particular assets (e.g., shares in a company, etc.) are stored in a Blockchain, and various data processing operations (referred to below as “application processing”) are performed using this ownership information.”

Additional information on the Blockchain-based system

Based on the application, the system will exploit the Blockchain’s cryptographic hash value as an effective security feature to protect the asset ownership data. The ability of the Blockchain to maintain the anonymity or privacy of its users is also one of the positive features of the technology, according to the exchange. It also added that each node of the system will contain a copy of the Blockchain’s information.

Nasdaq’s noncommittal stance on Blockchain

Despite its patent application, Nasdaq claimed that it is not yet committing to the technology. In its application, it states that:

“While distributed ledger technologies such as Blockchain show great potential, further improvements in the performance, efficiency, and capabilities of such technologies are needed.”

Earlier, the exchange had voiced its concerns about Blockchain.  

In a recent statement, Nasdaq Clearing’s head of product development, Gustaf von Boisman, claimed that the technology cannot be integrated into their existing systems immediately. He further stated that there are issues around implementing Blockchain-based systems into other financial systems.