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 Exchange.
Gemini’s Crypto Patent
The patent, 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 increasing 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 fifth issued patent for the Winklevoss Twins, it is certain that they are taking a controlled and regulated approach for their exchange business.