Major stock exchange operator Nasdaq filed a patent for a Blockchain technology-based asset ownership data storage system. The system uses the distributed ledger technology (DLT) system to use the digital wallets to record the owner of the property and enable the owner to access his / her assets.
In the patent application which was published by the US Patent and Trademark Office (USPTO) as in mid-2017, the Exchange Operator detailed how Blockchain can be used to record specific asset ownership information and how it can be accessed by the owners using a digital wallet.
“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.”
Extra 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. According to the Exchange, Blockchain’s ability to maintain its users’ anonymity or confidentiality is also one of the positive features of the technology. It has been added that each node of the system contains a copy of the information on the blockchain.
Nasdaq’s noncommittal stance on Blockchain
Despite its patent application, Nasdaq said that it would not yet be handed over to technology. In its application, it described:
“While distributed ledger technologies such as Blockchain show great potential, further improvements in the performance, efficiency, and capabilities of such technologies are needed.”
Previously, the exchange expressed concern over Blockchain.
In a recent statement, Gustaf von Boisman, NASDAQ Clearing’s product development head, said that the technology should not be integrated immediately into their existing systems. He said there were problems with implementing Blockchain based systems for other financial systems.