Alibaba Applies Blockchain For Faster Cross Border Payments
July 3, 2018
Alibaba company, the leader at the China’s IT-market, has filed application for patent to develop a blockchain solution aimed at quicker cross-border payments.
The application “A System and Method That Adjusts Account Balance on a Blockchain” was lodged by the company to the China State Intellectual Property Office (SIPO) in January this year, but the information on it became public just last Friday on June 29.
The document says, the future solution is intended to resolve the problem of adjusting funds left on online wallet users’ accounts. Alibaba spokespersons stressed that the leading role in this system will be given to payment operators-partners that along with their international representatives will function as node in internal blockchain network. Each of the net nodes is supposed to maintain account of user funds stored in partner companies’ wallets.
When being requested for performing an operation the nodes will check account balance via smart-contracts in blockchain net. After this they will update balance of user taking part in transaction thus not involving third parties in the process and avoiding delays.
Alibaba did not clarify how the system is going to be applied by the company commercially. However one of the company’s partners, Ant Financial, has declared recently to launch its own blockchain-based money transfer service.