In a patent application released by the U.S. Patent and Trademark Office last Thursday, UBS explains how it might use a distributed ledger to validate transactions by creating a permanent record of every action committed on the chain.
The key advantages a distributed ledger has over traditional technologies is its decentralization and immutability, according to the application.
The document emphasizes:
“Although a number of non-blockchain-based technologies related to account and data security, authentication, and verification exist (e.g., authorization/access to financial or other accounts, verification of buyers of purchase transactions, verification of owners of securities, verification of notaries of documents, etc.), many of these technologies rely on trust of the third party managing the database and/or lack one or more benefits of blockchain technology.”