A patent has been filed by Japan’s Nippon Telegraph and Telephone, the World’s fourth largest telecoms provider. The patent aims to use blockchain tech for a contract agreement. U.S Trademark and Patent Office (USPTO) reports the very news on 19th July. Telecommunication giant of Japan was looking forward to develop a new contract agreement system based on blockchain for long. NTT states that the application could be used for storing contracts without the help of any documentation. It further outlines the blockchain would be used to encrypt a particular contract and also for storing that specific contract in a decentralized manner. The entire process can be simplified by cutting off the need for any centralized platforms.
The entire process of the contract transaction will be virtual where all the parties willing to be involved in a specific agreement would link their transaction to this principal virtual contract transaction. The chain of transaction can be closed by the contract issuing party. Once closed an agreement verification apparatus would be implemented in order to ensure if all the evidences provided in the contract on the blockchain are correct and authentic. This procedure will be conducted by implementation of a comparison of the public keys that have been used for electronic signature at the very start of the blockchain with those that are used at the end of the process.
According to NTT the whole concept is very simple and authentic. However, they mention that a problem involving the very procedure of contracts on blockchain is that every transaction contains no other records but the electronic signature of the sender as the proof of the contract agreement. Thus NTT is working hard to maintain the credibility of each and every transaction throughout the process.
The patent proposal of NTT is one of the many which have already been proposed by major corporations this week. Cointelegraph reports on 18th July that both Bank of America and Mastercard have also proposed similar blockchain based inventions. It is predicted that there is a high chance for global telecom industry to get benefitted from blockchain in the next five years. Earlier this year a report released which has highlighted the ways in which technology can contribute from today’s $46 million to almost $1 billion in value by 2023.