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Visa Files Patent for Cryptocurrency System to Replace Cash

Visa Files Patent for Cryptocurrency System to Replace Cash

Visa International has filed for a cryptocurrency system patent that’s meant to interchange bodily forex. The system, which makes use of each central banks and business banks, leverages a non-public blockchain to enhance the fee ecosystem.

Visa’s Cryptocurrency Patent Filing

The United States Patent and Trademark Office (USPTO) printed on Thursday a patent utility entitled “digital fiat forex,” filed by Visa International Service Association on Nov. 8, 2019.

Visa Files Patent for Cryptocurrency System to Replace CashThe USPTO printed Visa’s patent utility for “digital fiat forex” on May 14; it was filed on Nov. 8, 2019. Source: Visa’s crypto patent submitting with the USPTO.

The submitting is for a fiat-linked cryptocurrency system utilizing “a non-public permissioned distributed ledger platform.” It describes a central pc, its duties, and key roles of the system: central entities, validating entities, redeeming entities, and customers. “A central entity could also be a central financial institution, which regulates a financial provide,” the doc particulars. Validating entities “are blockchain nodes, which can be friends similar to banks.” Redeeming entities “could settle for bodily forex for change for digital fiat forex,” similar to an ATM or a financial institution department location.

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The central entity pc generates the digital forex that’s recorded on a blockchain and “could decide {that a} specific digital forex unit must be added to or faraway from the blockchain.” According to the submitting’s summary:

The central entity pc causes removing of the bodily forex from circulation in a fiat forex system.

The submitting additional explains that the fee ecosystem could grow to be 100% digital and “money could also be faraway from the markets in a frictionless method” to enhance the fee ecosystem. “Users could maintain digital forex with the identical denomination because the native bodily forex.”

It additionally notes that after the digital fiat forex is issued, “A consumer or financial institution could switch the digital forex from pockets to pockets or retailer the digital forex on a sensible card and switch the good card to a different entity.”

Visa Files Patent for Cryptocurrency System to Replace CashAn illustration of the cryptocurrency system Visa is making an attempt to patent. Source: Visa’s crypto patent submitting with the USPTO.

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A consensus mechanism has not been chosen for the system’s blockchain. “The consensus mechanism could range relying on the protocol applied. Some instance consensus mechanisms … are proof of stake, Byzantine fault-tolerant algorithms, and crash-fault tolerant algorithms,” the submitting particulars. Other mechanisms explored embody a duplicate of Ethereum, Hyperledger Fabric, and zero-knowledge proofs. The full submitting will be discovered right here.

A Visa spokesperson was quoted by Forbes on Thursday as saying: “Each 12 months we search patents for a whole bunch of latest concepts … While not all patents will end in new merchandise or options, Visa respects mental property and we’re actively working to guard our ecosystem, our improvements and the Visa model.” Commenting on Visa’s cryptocurrency patent submitting, lawyer Jake Chervinsky tweeted:

You can’t patent one thing you didn’t invent or that isn’t new, so Visa’s patent utility needs to be so slender that even when it points, it received’t be a lot use even when it was enforceable. Finance incumbents received’t have the ability to use patent regulation to cease the crypto trade.

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Other firms have tried to patent numerous cryptocurrency techniques. For instance, Microsoft was just lately granted a world patent by the World Intellectual Property Organization for a cryptocurrency system utilizing physique exercise knowledge.

What do you consider Visa’s crypto patent submitting? Let us know within the feedback part beneath.

The submit Visa Files Patent for Cryptocurrency System to Replace Cash appeared first on Bitcoin News.

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