Visa Worldwide has filed for a cryptocurrency system patent that’s meant to exchange bodily foreign money. The system, which makes use of each central banks and business banks, leverages a personal blockchain to enhance the cost ecosystem.
Visa’s Cryptocurrency Patent Submitting
America Patent and Trademark Workplace (USPTO) revealed on Thursday a patent software entitled “digital fiat currency,” filed by Visa Worldwide Service Affiliation on Nov. 8, 2019.
The submitting is for a fiat-linked cryptocurrency system utilizing “a private permissioned distributed ledger platform.” It describes a central pc, its obligations, and key roles of the system: central entities, validating entities, redeeming entities, and customers. “A central entity may be a central bank, which regulates a monetary supply,” the doc particulars. Validating entities “are blockchain nodes, which may be peers such as banks.” Redeeming entities “may accept physical currency for exchange for digital fiat currency,” comparable to an ATM or a bank department location.
The central entity pc generates the digital foreign money that’s recorded on a blockchain and “may determine that a particular digital currency unit should be added to or removed from the blockchain.” In line with the submitting’s summary:
The central entity pc causes elimination of the bodily foreign money from circulation in a fiat foreign money system.
The submitting additional explains that the cost ecosystem may change into 100% digital and “cash may be removed from the markets in a frictionless manner” to enhance the cost ecosystem. “Users may hold digital currency with the same denomination as the local physical currency.”
It additionally notes that when the digital fiat foreign money is issued, “A user or bank may transfer the digital currency from wallet to wallet or store the digital currency on a smart card and transfer the smart card to another entity.”
A consensus mechanism has not been chosen for the system’s blockchain. “The consensus mechanism may vary depending on the protocol implemented. Some example consensus mechanisms … are proof of stake, Byzantine fault-tolerant algorithms, and crash-fault tolerant algorithms,” the submitting particulars. Different mechanisms explored embody a replica of Ethereum, Hyperledger Cloth, and zero-knowledge proofs. The total submitting could be discovered right here.
A Visa spokesperson was quoted by Forbes on Thursday as saying: “Each year we seek patents for hundreds of new ideas … While not all patents will result in new products or features, Visa respects intellectual property and we are actively working to protect our ecosystem, our innovations and the Visa brand.” Commenting on Visa’s cryptocurrency patent submitting, lawyer Jake Chervinsky tweeted:
You may’t patent one thing you didn’t invent or that isn’t new, so Visa’s patent software must be so slender that even when it points, it received’t be a lot use even when it was enforceable. Finance incumbents received’t be capable of use patent regulation to cease the crypto trade.
Different corporations have tried to patent numerous cryptocurrency techniques. For instance, Microsoft was not too long ago granted a global patent by the World Mental Property Group for a cryptocurrency system utilizing physique exercise information.
What do you concentrate on Visa’s crypto patent submitting? Tell us within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons, USPTO
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