Nasdaq Gets Patent For Newswire Service Built On Blockchain

Nasdaq, the second-largest stock exchange in the world by total capitalization, obtained a patent Tuesday that will permit it to use a blockchain-based wire service to release time-sensitive information. Nasdaq can now create a blockchain platform — which will integrate smart contracts — that will include encryption and workflow system and would also keep a schedule and record activity while securing information.

The patent, published by the U.S. Patent and Trademark Office, describes how various services — wires, newswires, press releases, and other forms of digital distribution — deliver their information at pre-set times to outlets using web interfaces for storing and receiving data. Further the patent explained that the technology is evolving, so is the increasing number of ways this service can improve — since these systems may leave audit trail gaps.

"The increased complexity in these services [web interfaces] can lead to errors. Thus, new and improved techniques and systems for delivering and securing such time-sensitive information are continually sought after," the document read.

This blockchain-based wire service would speed up the process of a newswire service while also making it cheaper to run as no data will be lost. This could also ease the process of sharing information while also sending it to select recipients at a pre-set time.

"The computer system and blockchain are programmed to allow dissemination of the information directly to selected parties at a set scheduled time by using programs or scripts (e.g., sometimes referred to as smart contracts) that have been added to the blockchain," the document outlined the use of the blockchain-based system.

The service would also ensure certain layers of security for scripts and programs. They would require multiple signatures to trigger the smart contracts after which an user can gain access to the information. Once the user has triggered the access, they will be able to interface with the blockchain at the registered time to receive the securely stored information.

"Access to the sensitive information that is stored on the blockchain may include a multi-signature requirement that is part of the embedded scripts that make up a given blockchain transaction," the patent adds.

It was reported early October that Nasdaq is also exploring a possible security token platform to support regulated initial coin offerings (ICOs). The stock exchange is interested in developing a platform for companies to offer security token offerings (STOs) — token offering that is registered with the Securities and Exchange Commission — to issue tokens and raise funding.

Nasdaq was speaking with a number of firms, including blockchain startup Symbiont, to launch the STO platform which would issue tokenized securities as well as allow their trade.