Consulting giant Accenture has rattled the cage of the fintech community by filing a patent for an “editable” blockchain that would allow a central administrator to edit or delete information stored in a permissioned blockchain system.
Business Insider cites a Financial Times report that states a permissioned system is governed by a central administrator using agreed upon rules. This differs from permissionless systems, like those used by blockchain pioneers such as Bitcoin, which have no central authority. A key feature of permissionless systems is that the records they contain cannot be changed.
Accenture unveiled a prototype of the blockchain on Tuesday developed jointly by Accenture and Giuseppe Anteniese, a Stevens Institute of Technology professor.
“An editable system goes against one of blockchain technology’s key principals — immutability” reports Business Insider. The move is controversial to many because blockchain was conceived as an immutable, tamper-proof ledger, which eliminated the need for a centralized authority.
Accenture insists that immutability is not necessary in permissioned systems because everything is overseen by a single governing authority, and argues that the need for it in a permissionless system is part of the reason banks have been slow to create viable use cases with blockchain technology.
Business Insider thinks the success of Accenture’s system will depend on “whether or not financial services firms intend to use blockchain for use cases that require flexibility. Should they decide to implement the technology in more straightforward capacities, like managing their customers’ personal details, Accenture’s functionality would not likely be especially useful.”
There is no indication why a mere patent application — not a publication, notice of allowance, grant or successfully adjudicated right — has reached this level of media coverage. Of late, blockchain-related patent filings, as well as issuances, have received significant coverage, prompting some to question where blockchain is headed.
Image source: businessinsider.com; bitcoinmagazine.com