In an effort to safeguard the multifarious cryptocurrency transactions taking place over the internet, the Winklevoss Twins have successfully won a security patent. The application covers a detailed system that aims at securing digital transactions via a complex time-stamped hash network and will be purportedly used for .
Gemini’s Crypto Patent
The , filed in November 2017, was granted on April 10, 2018, by the U.S. Patent and Trademark Office (USPTO). It is described as “a system, method, and program product for processing secure transactions within a cloud computing system.”
While “Gemini Exchange” is not mentioned verbatim in the application, it can be inferred from the language used that the proposed system will be used to run the cloud-based digital asset exchange owned by the Winklevoss brothers.
The patent also suggests its use in general cryptocurrency node networks, adding:
“(Patent) illustrates components for secure, authenticated distributed computing in an exemplary digital asset exchange system. (They) can include user devices running a digital asset network client (e.g., specific software configured to create a digital asset network), a digital asset network ledger, which may be centralized or decentralized (e.g., distributed via a digital asset network client, as with the bitcoin blockchain).”
Patent Details Use In Cybersecurity
The system shall make use of hash functions, along with digital signatures to increase exchange security. The patent mentioned that this procedure makes optimum use of the combination of common cryptographic techniques.
The application goes on to detail how this innovation can positively revamp the present state of cybersecurity. Till now, computer systems have been prone to attacks from a number of external forces and data connections, such as the introduction of malicious code or unauthorized access of information, usually via public internet access.
The open nature of the internet makes it prone towards hacker attacks, claims the patent, before adding, “The present invention provides novel systems, methods, and program products to provide security in computing systems.”
Based on a reading by BTCManager, the Winklevoss created invention provides user authorization using an indigenous sub-system network that verifies users based on credentials and session timeouts. The system also checks if user requests are “authentic,” or “appear” to originate from that user device. The authenticity of any client request can be confirmed by the computing system “using the trust chain verified computing methods of the present invention.”
Rising Crypto Patents A Positive Sign
By filing a patent, companies have historically gained a competitive advantage over rivals due to their ownership of a particular product or feature. This attracts customers to that particular business, as patents usually are filed on a company’s unique selling proposition.
The number of cryptocurrency patents issued in 2018 is a positive sign and denotes improved government understanding. Furthermore, with security issues plaguing the cryptocurrency industry, the Winklevoss security patent could mean a multitude of benefits, starting with investor confidence.
With the security application being the issued patent for the Winklevoss Twins, it is certain that they are taking a controlled and regulated approach for their exchange business.
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The Republic of Kyrgyzstan could be one of the most friendly countries, thanks to its accommodative approach. According to a report published in the country, the legal environment there offers better opportunities for startups in the blockchain industry and investors.
The , titled ‘Legal status of blockchain technology in Kyrgyzstan’ and dated March 12, 2018, was compiled by law firms John Tiner & Partners (Geneva) and John Tiner and Partners (Bishkek) at the behest of Kyrgyzstan’s International Financial Center Development Agency.
Blockchain Innovation in Central Asia
The aimed to study the current legal laws and legislation with regards to blockchain technology, investments in cryptocurrencies, of digital coins, the legality of cryptocurrency trading and exchanges and public investment in in the central Asian country.
No legislation in Kyrgyzstan prevents any blockchain technology-related implementation. The country, therefore, does not interfere in the industry and aims to encourage innovation in the cryptocurrency space as well.
The document further that mining cryptocurrencies or investing in them directly or through ICOs is not illegal in by any law in the country. The only restriction is that investors must comply with the local tax laws. A unique differentiating characteristic of the Republic of Kyrgyzstan as compared to other countries is that the legislation to to participate in cryptocurrency business actively is already in place.
The report : “Without a need for legislative reforms, Kyrgyzstan can now satisfy the demand of global crypto-investors to deal with blockchain-based assets on a firm legal basis.
“We are fully in agreement with the position of the National Bank that non-professional investment of savings into crypto-assets carries an unacceptable risk. The introduction of blockchain technologies can speed up securities settlements, optimize state procurement procedures and make the country a regional center for securities offerings by startups.”
Kyrgyz Stock Exchange and Government Look to Blockchain Tech
Furthermore, there are several more opportunities for the cryptocurrency industry in Kyrgyzstan. The report presented an with regards to the future of blockchain technology in the country. The Kyrgyz stock exchange is working on a pilot project to optimize real-time settlement in trading of securities.
The government could also move to digitize its records using the ledger and make use of the technology to improve transparency in public tenders. The study observed that the government wants to make Kyrgyzstan a hub for offering investment services related to cryptocurrencies simply by providing a liberal, yet regulated regime.
Further steps will be taken to transform the country into a more friendly place for startups to raise capital either by a traditional Initial Public Offering (IPO) or Initial Coin Offering (ICO). In both cases, the respective security or token will be traded on the local stock exchange, and commons can make the most of investment opportunities.
The liberalizing of the current laws to promote business is in line with the view and ideology of the government. A. Atambayev, former President of the Kyrgyz Republic, had said, “We are doing everything to make Kyrgyzstan a country of free people, free entrepreneurs, investors, and entrepreneur.”
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