In a patent application released by the U.S. Patent and Trademark Office last Thursday, UBS unveils how it might use a distributed ledger to validate transactions.
UBS intends to create a permanent record of every action committed on the chain through blockchain. According to the application, company will use smart contracts to automatically register a record that is added to the chain. When the record is added, the user will automatically receive a notification sent by the same contract.
UBS also assumes that it could put the smart contract on the same blockchain that stores the data being added or develop two separate blockchains: one to store the data, and one to hold the smart contract monitoring data additions.
The company has long been interested in blockchain, the company had already presented a trade transaction platform built on a blockchain in partnership with IBM in 2016. Called Batavia, the project has been expanding with four major banks joining the effort near the beginning of October 2017.