Chinese e-commerce conglomerate Alibaba has filed a patent application with the U.S. Patent and Trademark Office (USPTO) for a blockchain based system that allows a third party administrator to intervene in a smart contract in case of illegal activities. The USPTO published the patent application on October. 4,2018.

A smart contract is a computer protocol designed to digitally verify or enforce the negotiation or performance of a contract. Smart contracts are self executing, with the terms of the agreement between the parties being directly written into lines of code.

The patent document, which was initially filed in March, 2018, describes a blockchain powered transaction method that enables authorized parties to freeze or halt user accounts associated with illegal transactions, or intervene in a blockchain network.

The patent seeks to develop a system for effective administrative supervision of all accounts in a blockchain network, although the scope of supervision will be limited, which means it will not restrict normal transactions in the blockchain network.

Source: Cointelegraph website