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Patents can play a central role in cryptocurrency when it comes to innovation. Innovation in the forte of blockchain-based currency is focused on evolving original methodologies in simpler processes. Many large companies are dedicated to investing in the future of cryptocurrency because of promising growth figures. 

There are always 2 reactions when we talk about cryptocurrency. Either you know about cryptocurrency or you don’t have any idea about what cryptocurrency is? That’s why we have come up with our blog which will help you understand the concept of cryptocurrency and patents in cryptocurrency in a much better way. So, without taking much of your time let’s get started with  

What is cryptocurrency?

Cryptocurrency is a virtual or digital currency that works on Blockchain technology. This technology is designed to work as an online medium to buy goods and services by making payments. The cryptocurrency was introduced to people in the year 2013. 

Now you must be thinking that it sounds like something similar to digital payments, then what’s the difference between the two? Well, cryptocurrency is decentralized and free from any third-party interference. Neither cryptocurrency is issued nor controlled by any government. That’s the reason why cryptocurrency never fails any transactions. 

This is a very common question that must be coming to your mind how cryptocurrency does work without any external authority? The answer to this question is that this technology is based upon Blockchain technology, this can be said as a ledger that collects data about who made the transaction with whom. This data is stored and replicated in every node of the blockchain. Making it secure and validated by every node. 

Top 10 Blockchain/Crypto patent assignees

 

Source: https://www.fr.com/wp-content/uploads/2021/09/Patenting-Crypto-Final-Slides.pdf 

Among all, IBM has the most number of patents in Blockchain/ Crypto, followed by Advanced new tech and Bank of America.

Challenges in patenting Crypto Currency

Over 48% of blockchain patent applications have yet to be granted. Traditional blockchain solutions are insufficient to confer patent eligibility. In the cryptocurrency field, the body of prior art is fast growing.

Eligibility for the Subject – The majority of blockchain patent applications are classified as software or business processes by the USPTO. – Knowing how a proposed solution works can help you solve Section 101 problems.

Novelty (Anticipation and Non-Obviousness) — Cryptocurrency and blockchain technology have been around since the late twentieth century– Prior art is fast evolving and expanding into new industries thanks to open-source software.

Key potential areas to understand for future litigation

  1. Cryptographic Mechanisms
  2. Information Retrieval
  3. Security Arrangements for protecting computers… programs or data against unauthorized activity
  4. Data switching networks
  5. Payment Architectures, schemes, or protocols
  6. Administration Management
  7. Other transmissions of digital transformation

 

Patents in Cryptocurrency

  • PayPal applied for a patent based on a method that would reportedly use secondary wallets to speed up cryptocurrency payments.
  • A patent for a system of “controlling fractional reserves of blockchain currency” was given to MasterCard. The process entails storing both fiat money and cryptocurrency in a single account.
  • Amazon has two USPTO-registered patents:
      • The first patent, titled “Signature Delegation,” involves the use of cryptographic signatures in a data structure based on the Merkle tree.
      • The second patent discusses a technique for building extendable shards in a database and is titled “Extending Grids in Data Storage Systems.” A blockchain’s datasets, for example, can be created using this method thanks to their extreme flexibility. 
  • Microsoft Technology Licensing, LLC – Block chain Object Deployment and Synchronization Across Blockchains U.S. Pat. No. 10,938,548B2
  • Block Inc., LLC – Cryptocurrency Payment Network U.S. Pat. No. 10,108,938B1
  • Cornell University – Systems and Methods for Securing Cryptocurrency Purchases U.S. Pat. No. 10,846,663B2

 

Way Ahead

Cryptocurrency can be very promising in the upcoming future. But there are issues in this which might arise due to non-regulation and volatile nature, if we see the trends in patents, there is a scope where innovation can emerge. We at Wissen research do a thorough Technology Gap analysis and Emerging Technologies that how you can bring innovation in technology by leveraging the innovation.